Which of the following is a primary feature of the five forces model?
A) It is concerned exclusively about the intensity of rivalry among direct competitors.
B) It takes into account a firm's internal resources, capabilities, and core competencies.
C) It helps managers determine the changing speed of an industry or the rate of innovation.
D) It views competition within an industry broadly to include forces such as buyers, suppliers, and the threat of substitutes.

Question

Quizplus · Accepted Answer

In Porter's five forces model, competition is not defined narrowly as the firm's closest competitors, but rather more broadly to include other forces in an industry: buyers, suppliers, potential new entry of other firms, and the threat of substitutes.

Which of the Following Is a Primary Feature of the Five