Question

Although Michael Porter is known as an IO economist and his emphasis on industry analysis, his ______ framework allows for competitive advantage to be gained through uniqueness, with firms following a ______ strategy.

Answer 1

Porter's Five Forces framework suggests that companies can achieve competitive advantage by being unique and following a differentiation strategy to distinguish themselves in the market.

Step-by-step explanation:

Michael Porter's Five Forces framework allows companies to gain competitive advantage through uniqueness by following a differentiation strategy. Porter's model assesses industry attractiveness and competitive intensity, impacting business strategies and potential profitability. A differentiation strategy involves developing unique products or services to distinguish a company from its competitors, allowing it to command a premium price.