What Is Porter's Five Forces Model

question 133

Multiple Choice

What is Porter's Five Forces Model?

• A) Evaluation of an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies.
• B) Analysis of the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry.
• C) View of a firm as a series of business processes, each of which adds value to the product or service.
• D) Generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service.

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Definitions:

Product Life Cycle

The sequence of stages that a product moves through, starting from its introduction, advancing to growth, reaching maturity, and finally declining in the market.

Growth Stage

A phase in the product life cycle characterized by rapid market expansion, increased sales, and the successful establishment of a product in the market.

Sales Increases

A rise in the volume or value of products or services sold, reflecting positive growth for a business.

LED Lightbulbs

Energy-efficient lighting options that use light-emitting diodes to produce light, known for their longevity and lower energy consumption compared to traditional bulbs.