Question

The five forces model suggests that firms should target the industry with the highest potential for above-average returns and then implement either a cost-leadership strategy or a differentiation strategy.
True/False?

Answer 1

Answer: True

Explanation:

The following given statement is true. Porter's Five Forces model is referred to as or known as the framework for evaluating or analyzing an organization's competitive environment. The power and number of an organization's  competitive rivals, suppliers, new market entrants, customers, and the substitute products, commodity influence an organization's profitability.