A Key Limitation of Porter's Five Forces Framework Is That

question 1

Multiple Choice

A key limitation of Porter's five forces framework is that:

• A)I looks only at single industries not at relationships between industries
• B)Competitive strategies may shape industry structure,rather than structure shaping competition
• C)Industries are more complex than can be reduced to five competitive forces
• D)It offers qualitative,not quantitative predictions

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Definitions:

Loanable Funds

Financial resources available for borrowing, consisting of the savings of individuals, businesses, and the government.

Saving

The process of setting aside a portion of current income for future use or for investment.

Investment

The distribution of assets, typically financial, with the aim of earning revenue or gains.

Private Saving

The portion of households' disposable incomes that is not spent on consumption but saved for future use.