The Five-Forces Model Helps to Determine Both the Nature of Competition

question 5

True/False

The five-forces model helps to determine both the nature of competition in an industry and the profit potential for the industry.
E. Porter describes the competitive environment in terms of five basic competitive forces that affect the ability of a firm to compete in a given market. Together, they determine the profit potential for a particular industry.

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Definitions:

Hygiene

Practices and conditions that help to maintain health and prevent the spread of diseases, typically through cleanliness.

Cilia

Short, hair-like projections that line certain parts of the human body, such as the respiratory tract, moving in a wave-like motion to transport mucus and trapped particles.

Tympanic Membrane

Also known as the eardrum, a thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves.

Slightly Concave

Describes a surface that is curved or dented inwardly, often used in reference to physical shapes or anatomical structures.