Question

the five-forces model helps to determine both the nature of competition in an industry and the profit potential for the industry. group of answer choices true false

Answer 1

True the five-forces model helps to determine both the nature of competition in an industry and the profit potential for the industry.

What is profit potential?

Profit potential is a measure of a company's ability to increase profits in upcoming sales and trades. I prefer to describe it as the monetization of your entire ability to generate income. Profit potential also gauges how much money a business could make if every aspect of its operations ran at maximum effectiveness.

This encompasses everything like price, operations, efficiency, turnover, etc. Additionally, consider profit potential as the highest income at the lowest cost. It's crucial to remember that "potential" refers to what a business could be able to achieve under perfect circumstances.

However, in practice, businesses do not achieve these requirements. Additionally, be honest about your top performance. For instance, a manufacturing facility cannot operate at full capacity. For maintenance, for instance, there is downtime.

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