Question

The five forces are not meant to replace __________ and __________ economic philosophies, which are part of making thorough decisions from a business perspective.

Answer 1

Answer:

analyzing and accepting.

Explanation:

Porter's Five Forces, is a model of competitive analysis developed by Michael Porter, whose main objective is to assist the positioning of an organization in the market in which it operates.

For Porter, the five forces that can help a company to position itself in the market are:

1. Competitive Rivalry.
2. Supplier Power.
3. Buyer Power.
4. Threat of Substitution.
5. Threat of New Entry.

According to the author, these five forces will be decisive for a company to align its strategy appropriately to the market in which it operates, adapting its microenvironment to the macroenvironment and then achieving essential competitive advantages to increase organizational profit.

Therefore, this tool is used as an analysis differential for companies to know their potential, correct the flaws and identify opportunities. But it is not able to replace economic philosophies, which continue to be an essential business assessment tool for decision making.