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Question 5: Which of the following is NOT relevant to the Five Forces Model? a. It...

Question 5: Which of the following is NOT relevant to the Five Forces Model?

a. It is a widely used analytical framework to analyze profitability at industry level

b. It has a limitation to analyze the profitability from the perspective of dynamic strategies

c. It ignored how government regulations affect the profitability

d. It is useful to analyze some strategic cooperation between rivalries

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Answer #1

The answer is given below:

b. It has a limitation to analyze the profitability from the perspective of dynamic strategies

Porter's Five Forces Model generally talks about the factors which affect a companies profit, which includes bargaining powwers of suppliers and buyers, the threat of substitute and new entrants and rivalry.

Its one main disadvantage is it ignores the government regulations.

What is does not speak about is  it has a limitation to analyze the profitability from the perspective of dynamic strategies.

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