Overall, the average level of performance in an industry is likely to be highest when
A) the threat level of all five forces is high.
B) the threat level of rivalry and substitutes is low, but the threat level of suppliers, buyers and new entrants is high.
C) the threat level of rivalry, substitutes and new entrants is high, but the threat level of buyers and supplies is low.
D) the threat level of all five forces is low.

Question

Quizplus · Accepted Answer

When the threat level of all five forces is low, it indicates a favorable environment for companies to perform well, as there is less competitive pressure and fewer challenges from suppliers, buyers, substitutes, and new entrants.

Overall, the Average Level of Performance in an Industry Is