Why Should Organizations Perform a Porter's Five Force Analysis

question 49

Multiple Choice

Why should organizations perform a Porter's Five Force Analysis?

• A) It determines how profitable an industry can be
• B) It determines the power level of each force which helps the organization address that power level
• C) It determines whether an organization should stay in an industry or enter a new industry
• D) All are correct

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Definitions:

Enhanced Customer Convenience

Improving the ease and efficiency of a service or product for customers, often through technology or process improvements.

Limited Service

Refers to a business model where only a partial range of services is offered to customers as opposed to full-service alternatives.

Service Retailer

A business that sells intangible products or services directly to consumers.

Low Prices

The strategy of setting the cost of a product or service lower than the competition, often to attract more customers or gain a market share.