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Which of the following offers an example in which Porter's five forces are mostly weak and competition is low?

Multiple Choice
a. an international hotel chain purchasing milk
b. a coffee shop
c. a single consumer purchasing milk
d. a dog-walking business

User Kfis
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1 Answer

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Final answer:

In this case, the option that offers an example where Porter's five forces are mostly weak and competition is low is a single consumer purchasing milk. Therefore correct answer is option c.

Step-by-step explanation:

In this instance, option c suggests a scenario where Porter's five forces are predominantly weak, indicating low competition, as exemplified by a single consumer buying milk. Porter's five forces is a framework used to analyze the competitive intensity and attractiveness of an industry. The five forces are: the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products or services, and the intensity of competitive rivalry.

When a single consumer is purchasing milk, there is generally low competition and weak forces at play. The threat of new entrants and the bargaining power of buyers are both low since there is only one buyer. The bargaining power of suppliers is also low since there are typically multiple suppliers of milk. There is limited threat of substitute products, as milk is a staple product with limited alternatives.

User Noushad
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