Question

The Porter's _____ is a simple but powerful tool to evaluate the power of business.

• A. four forces tool
• B. five forces tool
• C. six forces tool
• D. seven forces tool

Answer 1

Answer: (B)

five forces tool

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.