Question

Michael Porter defined the Five Forces Model and the potential pressures that can hurt sales. Which of the following is not one of the potential pressures that can hurt sales?

A. Suppliers can drive down profits by charging more for supplies.
B. New market entrants can steal potential investment capital.
C. Substitute products can steal customers.
D. Competition can steal customers.

Answer 1

Michael Porter's Five Forces Model identifies potential pressures that can hurt sales. Suppliers charging more for supplies is not one of these potential pressures.

Step-by-step explanation:

According to Michael Porter's Five Forces Model, the potential pressures that can hurt sales include competition from firms with better or cheaper products, substitute products stealing customers, suppliers driving down profits by charging more for supplies, and new market entrants stealing potential investment capital. Therefore, the answer is A. Suppliers can drive down profits by charging more for supplies is not one of the potential pressures that can hurt sales