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Which of the following is one of the forces of the Five Forces Model identified by Michael Porter?

Options:
A) Rivalry among customers
B) Government regulations
C) Threat of new entrants
D) Consumer groups

User Thepeer
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1 Answer

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Final answer:

The correct force from Michael Porter's Five Forces Model is 'Threat of new entrants'. This force evaluates how barriers to entry and other factors affect competition within an industry. Additionally, government regulations can influence this and all of the other forces by altering barriers to entry.

Step-by-step explanation:

The force from Michael Porter's Five Forces Model identified by the options given is 'Threat of new entrants'. This concept represents one of the five competitive forces that shape every industry and helps determine an industry's weaknesses and strengths. Porter's model outlines how the threat of new businesses entering the market impacts the competitive environment and the existing companies' abilities to remain profitable. Factors such as barriers to entry, which can be legal, technological, or market forces, play a significant role in determining the level of threat new entrants might pose.

The other forces in Porter's model include the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products or services, and the existing rivalry among competitors within an industry.

It is important to note that while government regulations can influence all of the forces, they are not specifically one of the forces themselves. Government regulations can create barriers to entry, functioning as a key factor that can either encourage or discourage new competitors.

User Askaale
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