Which of the Following Is a Drawback of Porter's Five

question 30

Multiple Choice

Which of the following is a drawback of Porter's five forces model?

• A) The model describes competition narrowly as a firm's closest competitors.
• B) Managers cannot determine the changing speed of an industry or the rate of innovation.
• C) It fails to provide a basis for deriving implications for a firm's strategic position within an industry.
• D) The model fails to consider that threat of substitutes can come from outside a given industry.

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Definitions:

Crystallized Intelligence

One’s lifetime of intellectual achievement, as shown largely through vocabulary and knowledge of world affairs.

Life Span

The maximum duration of life of a species or individual, from birth to death.

Authoritarian Parents

Parents who are rigid in their rules and who demand obedience for the sake of obedience.

Self-reliance

Self-reliance is the reliance on one's own capabilities, judgment, or resources rather than those of others.