A Major Drawback of Porter's Five Forces Model Is That

question 103

True/False

A major drawback of Porter's five forces model is that it does not analyze the threat of substitutes when forming a corporate strategy.

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Definitions:

Normal Distribution

A type of statistical distribution where data forms a symmetrical bell-shaped curve, with most values clustering around a central mean value.

Illusory Correlation

The cognitive mistake of perceiving a relationship between two variables even when none exists, often leading to erroneous conclusions or stereotypes.

Negative Correlation

A statistical relationship between two variables in which one variable increases as the other decreases.

Positive Correlation

A relationship between two variables where both variables move in the same direction.