Author Question: Describe Porter's five forces model. What will be an ideal ... (Read 45 times)

clippers! · **on:** Jul 7, 2018

Describe Porter's five forces model.

What will be an ideal response?

Question 2

A database management system is also referred to as a database.

Indicate whether the statement is true or false

Benayers · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

Organizational strategy begins with an assessment of the fundamental characteristics
and structure of an industry. One model used to assess an industry structure is Porter's five forces
model. Porter developed the five forces model to help organizations determine the potential
profitability of an industry. Over the years, this model has also been applied to understand
organizations' competitive environments. Porter's five competitive forces can be grouped into
two types: forces related to competition and forces related to supply chain bargaining power. The
competitive forces include competition from vendors of substitutes, competition from new
competitors, and competition from existing rivals. The bargaining power forces include the
bargaining power of suppliers and the bargaining power of customers. The intensity of each of
the five forces determines the characteristics of the industry, how profitable it is, and how
sustainable that profitability will be. Organizations examine these five forces and determine how
they intend to respond to them. This examination leads to development of competitive strategies.

Answer to Question 2

FALSE