Question

A major drawback of Porter's five forces model is that it does not analyze the bargaining power of suppliers when analyzing an industry.

Options:
A. Comprehensive industry analysis
B. Focus on customer preferences
C. Neglect of supplier influence
D. In-depth competitor assessment

Answer 1

A major drawback of Porter's five forces model is the neglect of supplier influence when analyzing an industry.

Step-by-step explanation:

A major drawback of Porter's five forces model is that it does not analyze the bargaining power of suppliers when analyzing an industry. The five forces model focuses on five key factors that affect the competitiveness and profitability of an industry, including the threat of new entrants, the bargaining power of buyers, the threat of substitute products, and the intensity of competitive rivalry. However, it neglects to consider the influence and power that suppliers may have in the industry.