The logic of the Five Forces model implies that, as the intensity of the forces increases, the industry environment becomes more hostile and overall industry profitability will decline.

Question

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The Five Forces model suggests that the intensity of the forces determines the level of industry competition and profitability. As the forces become more intense, industry competition increases, and profitability declines. Therefore, the model implies that a more hostile industry environment leads to lower profitability.

The Logic of the Five Forces Model Implies That, as the Intensity