The most powerful and widely used tool for diagnosing the principle competitive pressures in a market is the:
A) Five Forces Model.
B) SWOT.
C) Competition Intensity Model.
D) Dynamic Simulation Model.
E) Competitor Profiling.

Question

Quizplus · Accepted Answer

The Five Forces Model, introduced by Michael Porter, is the most widely recognized and influential tool for diagnosing the principle competitive pressures in a market. It considers five forces that determine the intensity of competition and profitability in a market: the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services, and the intensity of competitive rivalry. It is a framework that can be applied to any industry, sector, or market.

The Most Powerful and Widely Used Tool for Diagnosing the Principle