Bus 189 (Chapter 5)

The underlying industry structure, as depicted by Porter's Five Forces Model, has little effect on individual firm competitive conduct.

False

Which of the following statements is NOT true about the five forces in Porter's competitive analysis model?

The stronger the five forces in an industry, the greater the industry's profit potential.

The objective of Porter's five forces model is to:

Assess the potential for profits within an industry.

In the _____ developed by Michael Porter, competition is not defined narrowly as a firm's closest competitors but rather more broadly to include other factors in an industry like buyers, suppliers, potential new entry of other firms, and the threat of substitutes.

five forces model

A product that is fundamentally different yet serves the same function or purpose as another product best defines the term _____.

substitute