Question

The five competitive forces include all of the following forces that shape competition within an industry EXCEPT:

1) Supplier power
2) Threat of new entrants
3) Rivalry among existing competitors
4) Threat of substitute products or services
5) Government regulations

Answer 1

The five competitive forces include supplier power, threat of new entrants, rivalry among existing competitors, threat of substitute products or services, and competitive rivalry, but not government regulations which are external factors.

Step-by-step explanation:

The five competitive forces that shape competition within an industry, as identified by Michael Porter, are supplier power, threat of new entrants, rivalry among existing competitors, threat of substitute products or services, and competitive rivalry. These forces determine how much market power each firm in the industry possesses, the degree of product similarity, the barriers to entry for new firms, and the bases upon which firms compete, such as price, advertising, and other product differences. However, the one option listed that is not one of Porter's five forces is 'Government regulations'. Government regulations can indeed affect market structure and competition but are considered external factors rather than one of the internal competitive forces within an industry.