CS Professional · Strategic Management and Corporate Finance · Competitive Positioning
Which of the following is one of the five forces in Porter's Five Forces Model of industry analysis?
Threat of new entrants is one of Porter's five forces. The others are supplier power, buyer power, threat of substitutes and rivalry among existing firms. Regulation, technology and social trends are macro-environment factors studied through PESTLE, not separate forces in this industry-structure model.
- AThreat of new entrantsCorrect
- BGovernment regulation
- CTechnological change
- DSocial and cultural trends
Explanation
Porter's five forces are threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes and rivalry among existing competitors. Government regulation, technology and social trends are macro-environmental factors, which belong to PESTLE-type analysis rather than the five forces.
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