Michael Porter Divides Competitive Structure into Five Basic Competitive Forces

question 33

Multiple Choice

Michael Porter divides competitive structure into five basic competitive forces. Which one of the following does not belong?

• A)Threat of entry by new competitors
• B)Bargaining power of the buyers
• C)Bargaining power of the sellers
• D)The relative profit margins between competitors
• E)Rivalry among existing competitors

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Definitions:

Overt Response

A visible or outward reaction to a stimulus or situation.

Empiricism

A philosophical theory that states knowledge comes only or primarily from sensory experience, emphasizing the role of empirical evidence in the formation of ideas.

Mental Process

The internal, covert activities of the mind, such as thinking, reasoning, imagining, and remembering.

Self-help Book

A book designed to offer advice and information on improving one’s life, focusing on personal improvement and self-care.