Topic

How do Five Forces impact profitability

Instructions

How do the five forces of competition in an industry affect its profitability potential?

Answer preview

he five forces model is considered to be an analytical tool which is utilized to evaluate the competitive forces acting on a business organization within an industry. Within an industry, competitive forces have never remained the same and keep on transforming with period. Porter’s Five Forces Model has the ability of defining an industry structure as well as the competition level in that industry. If the competitive forces are powerful in the industry it will be less profitable.

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