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which of the scenarios does not fit into the model of the five competitive forces? competition created by bargaining power of buyers competition from complement goods and services competition from existing firms competition from substitute goods and services competition from potential entrants

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Final answer:

Competition from complement goods and services does not fit into the model of the five competitive forces, as this scenario is not one of Porter's original forces and typically complements rather than competes with a firm's offerings.

Step-by-step explanation:

The scenario that does not fit into the model of the five competitive forces is 'competition created by bargaining power of buyers'. The five forces model, developed by Michael Porter, identifies five primary competitive forces that influence a company's ability to sustain profits: the threat of new entrants, the threat of substitute products or services, the bargaining power of customers (buyers), the bargaining power of suppliers, and the competitive rivalry among existing competitors. Out of the listed scenarios, competition from complement goods and services is not part of Porter's original five forces. This is because complement goods and services increase the value of the firm's offerings rather than compete with it.

Firms face various competitive situations, ranging from perfect competition to monopoly. In perfect competition, many firms sell identical products, whereas in monopoly, a single firm dominates without direct competition. Monopolistic competition involves many firms selling similar but not identical products, and oligopoly is characterized by a few firms selling identical or similar products. These models help determine the intensity of competition and potential profitability in different market structures.

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