What five forces determine industry structure? A. Existing rivalries, threat of

Question

What five forces determine industry structure?

A.

Existing rivalries, threat of new entrants, consumer bargaining power, supplier bargaining power, and threat of substitution

B.

Operating costs, threat of substitution, bargaining power of consumers, bargaining power of suppliers, and threat of new entrants

C.

Consumer loyalty, existing rivalries, threat of substitution, bargaining power of consumers, and bargaining power of suppliers

D.

Existing rivalries, threat of substitution, bargaining power of consumers, bargaining power of suppliers, and swings in the world economy

E.

Existing rivalries, threat of governmental regulation changes, bargaining power of consumers, bargaining power of suppliers, and threat of new entrants

Explanation / Answer

The correct option is

Option A

Existing rivalries, threat of new entrants, consumer bargaining power, supplier bargaining power, and threat of substitution.

This is also called Porter’s five forces model. In this, these five forces are applied on the product or services, company, industry and it is measured that what is the intensity of these forces on them.

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