Question

Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are:
I. Supplier power, Threat of new entry
II. Supplier power, Buyer power, Competitive rivalry
III. Supplier power, Competitive rivalry, Threat of new entry
IV. Supplier power, Buyer power, Competitive rivalry, Threat of substitution, Threat of new entry
Select the correct answer from the options given below-

• A. IV
• B. III
• C. II
• D. I

Answer 1

The correct option is A IV

The Porter's five forces tool is a simple but powerful tool to evaluate the power of business.Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are: a) Supplier power,

b) Buyer power,

c) Competitive rivalry,

d) Threat of substitution,

e) Threat of new entryAs per Porter's Forces Analysis, supplier power assesses how easily suppliers may drive up prices.As per Porter's Forces Analysis, buyer power evaluates how easy it is for buyers to drive prices down.