Which of the following statements is NOT true about the five forces in Porter's competitive analysis model?
A) The relative strengths of the five forces that shape competition are context-dependent.
B) The stronger the five forces in an industry, the greater the industry's profit potential.
C) Competition in the model is described as the tug-of-war between the five forces to capture as much as possible of the economic value created in an industry.
D) An analysis of the five forces provides the basis for how a firm should position itself to gain and sustain a competitive advantage.

Question

Quizplus · Accepted Answer

As a rule of thumb, the stronger the five forces in an industry, the lower the industry's profit potential-making the industry less attractive for competitors. The reverse is also true: the weaker the five forces, the greater the industry's profit potential-making the industry more attractive.

Which of the Following Statements Is NOT True About the Five