Which of the following scenarios would be the most favorable to an existing firm in the industry according to the Porter model of the competitive environment?
A) Many competitors, few entry barriers, and few customers.
B) Many competitors, high threat of entry, many customers.
C) Few entry barriers, many substitutes, many customers.
D) High industry growth, many barriers to entry, customers have low bargaining power.
E) Low industry growth, few barriers to entry, suppliers have low bargaining power.

Question

Quizplus · Accepted Answer

Porter's model suggests that high industry growth, many barriers to entry, and a situation where customers have low bargaining power is the most favorable of the scenarios listed. See Table 2.2 for other scenarios.

Which of the Following Scenarios Would Be the Most Favorable