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Five-Forces analysis implicitly assumes a zero-sum game, a perspective that can be short-sighted. True or False?

User Holgero
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Final answer:

Five-forces analysis does not assume a zero-sum game. It is a framework developed by Michael Porter to analyze industry competitiveness.

Step-by-step explanation:

False. The statement that five-forces analysis implicitly assumes a zero-sum game is incorrect. In fact, five-forces analysis is a framework developed by Michael Porter to analyze the competitiveness of an industry, and it considers various forces that can impact a company's profitability. It takes into account the bargaining power of suppliers and customers, the threat of new entrants and substitutes, and the intensity of competitive rivalry. This framework does not assume that one company's gain is always at the expense of others; rather, it aims to provide insights into the dynamics of the industry and help companies identify strategic opportunities.

User Martin Omander
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