Which of the following statements is true about Porter's 5-Forces Model?
A) The level of threat of entry from competition is generally the same across all industries.
B) Every industry and market is different in terms of who maintains the power in the buyer-supplier relationship.
C) The buyer or customer has no power to force down prices in an industry.
D) Not all companies face the threat of substitutes.

Question

Quizplus · Accepted Answer

Porter's 5-Forces Model suggests that the power in the buyer-supplier relationship can vary depending on the specific industry and market. This means that every industry and market is different in terms of who maintains the power in the buyer-supplier relationship. Therefore, option B is the correct choice. Option A is incorrect, as the level of threat of entry from competition can vary depending on the industry. Option C is also incorrect, as buyers or customers can have significant bargaining power to force down prices in some industries. Option D is also incorrect, as all companies face the threat of substitutes to some extent.

Which of the Following Statements Is True About Porter's 5-Forces