The Five Forces Model Suggests That Firms Should Target the Industry

question 88

True/False

The five forces model suggests that firms should target the industry with the highest potential for above-average returns and then implement either a cost-leadership strategy or a differentiation strategy.

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Definitions:

Nonconforming Goods

Goods that fail to meet the specifications or standards outlined in a contract.

Course of Dealing

A term defining the established behavior and interaction patterns between contracting parties over time, building a context for interpreting their agreements.

Risk of Loss

denotes the possibility that an asset or investment's value will decrease, reflecting the chance of losing on an investment or possession.

Contract Voided

A legal declaration that a contract is null and void and, therefore, unenforceable as though it never existed.