Which of the Following Statements Is True of Porter's Five-Force

question 3

Multiple Choice

Which of the following statements is true of Porter's five-force model?

• A) It states that the attractiveness of an industry is unaffected by the industry's degree of rivalry.
• B) It fails to acknowledge the role of substitutes for customers.
• C) It is often used in practice to assess a specific firm's external environment.
• D) It states that oligopolistic industries are less competitive if firms choose to engage in price wars.

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Definitions:

Receipt Of Order

The process of receiving and acknowledging an order from a customer or client, marking the initiation of order fulfillment.

Production Process

The method of converting raw materials into finished products through a series of steps and operations.

Production Lead Time

The total time taken from the beginning of production to the product's completion and readiness for delivery.

Order-Level Costs

Expenses directly related to a specific order, including purchasing, handling, and setup costs.