Porter's 5 Forces Model Was Based on a Static, Stable

question 28

Multiple Choice

Porter's 5 Forces model was based on a static, stable view of industry which ignores dynamic forces

• A)because industries in Porter's day were not very dynamic.
• B)which can easily be dealt with by taking a dynamic perspective of the forces e.g. Innovation is a consequence of Rivalry.
• C)and so has outlived its usefulness, and should be replaced with something more up to date.
• D)which was Porter's intention, because you have to "walk before you can run".

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Definitions:

Accommodation

In psychology, the process of adjusting one's cognitive structures to incorporate new information or experiences.

Conservation

The protection, preservation, management, or restoration of natural environments and the ecological communities that inhabit them.

Concrete Operational

A stage in Piaget's theory of cognitive development where children begin to think logically about concrete events.

Preoperational

A stage in Piaget's theory of cognitive development (approximately ages 2-7) where children begin to use language and think symbolically, but lack logical operations.