Question

Your best friend is a contestant on the game show Who Wants to Be a Millionaire? He just exercised one of his "lifelines" by calling you for help with a marketing-related question. Your friend reads the following question to you:
Which one of the following statements about Porter's five forces model is true?
e. The model does not include government power.

Answer 1

Answer:

The model does not include government power

Explanation:

Porter Fives Forces model is a great tool developed by Porter for comprehending with the competitiveness of the business environment of organization and to identify the potential profitability of an organization's strategy. He identified five main forces in the competitive environment capable of eroding the profitability of an organization and they are: competitive rivalry, the power of suppliers, the power of the buyers, the threat exhibited by new entrants, and the threat of substitution. This does not include the power of the government.