Question

Within the five forces framework, the five most common threats facing firms from their competitive environment include each of the following except:_______.a. choices buyers. b. complementors. c. suppliers. d. substitutes.

Answer 1

Answer:

B. Complementors

Explanation:

According to Porter, there are 5 forces that affect firms from the competitive environment. They include:

1. Threat from new entrants/competition

2. Threat from existing competition

3. Power of suppliers

4. Power of buyers/customer

5. Threat of substitute product.

In this case, as it can be clearly seen, complementors isn't part of the threat listed out by porter five forces framework.

Answer 2

Answer:

B

Explanation:

Michael Porter’s 5 competitive forces:

Threat of new entrants

Bargaining power of suppliers

Bargaining power of buyers

Threat of substitute products

Intensity of rivalry among competitors

The idea is to look at each of these factors and determine the degree to which they increase competition in the industry. If the forces are strong, then they increase competition. Whereas if the forces are weak, then they decrease competition. Porter’s five forces definition can be utilized by any business.