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Management · Q207

Strategic Management

Graduate and Post Graduate · Management · question 207

Q207

The first of Porters Five Forces model is the

A.
Intensity of rivalry among industry competitors
B.
Threats of new entrants
Answer
C.
Bargaining power of suppliers
D.
Bargaining power of buyers

Answer: Option B

Solution

Answer: Option B
Solution:
The first of Porters Five Forces model is the threats of new entrants. Threat of new entrants refers to the threat new competitors pose to existing competitors in an industry. Therefore, a profitable industry will attract more competitors looking to achieve profits.