Strategic ManagementMCQQuestion 5868 of 809
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According to Michael Porter's Five Forces Model, which of the following forces determines the structural attractiveness and competitive intensity of an industry?

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — Threat of new entrants, Threat of substitutes, Bargaining power of buyers, Bargaining power of suppliers, and Industry rivalry

All Options:

  • AThreat of new entrants, Threat of substitutes, Bargaining power of buyers, Bargaining power of suppliers, and Industry rivalry ✓
  • BStrengths, Weaknesses, Opportunities, Threats, and Financial leverage
  • CMarket penetration, Market development, Product development, Diversification, and Consolidation
  • DCost leadership, Differentiation, Focus, Stuck-in-the-middle, and Blue Ocean

Detailed Solution & Explanation

Porter's Five Forces Framework:
1. **Threat of New Entrants**: Ease with which new competitors can enter the industry.
2. **Bargaining Power of Buyers**: Ability of customers to exert downward pressure on prices.
3. **Bargaining Power of Suppliers**: Concentration and power of input providers.
4. **Threat of Substitute Products**: Availability of alternative products satisfying the same consumer need.
5. **Rivalry Among Existing Firms**: Intensity of competitive battles among incumbent firms.
Hence, **Option A** is the correct answer.

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