Which of the Following Statements Is Not True About the Five

question 32

Multiple Choice

Which of the following statements is not true about the five forces in Porter's competitive analysis model?

• A) The relative strengths of the five forces that shape competition are context-dependent.
• B) The stronger the five forces in an industry, the greater the industry's profit potential.
• C) Competition in the model is described as the tug-of-war between the five forces to capture as much as possible of the economic value created in an industry.
• D) An analysis of the five forces provides the basis for how a firm should position itself to gain and sustain a competitive advantage.

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Definitions:

Specific Product

A product distinguished by its unique characteristics or identified for a particular use or market.

Inelastic Demand

A situation in which the demand for a product does not significantly change in response to price changes, often because there are few or no substitutes available.

Antidrug Policy

Government or organizational policies aimed at reducing the production, distribution, and consumption of illegal drugs.

Street Crime

Refers to criminal acts that occur in public places such as theft, vandalism, assault, and robbery.