Question

Paula Logston is the owner and operator of a high-end online custom clothing company. Paula has never heard of Porter's Five Forces model and she wants to understand why she would perform an analysis using it. If you were tasked with explaining Porter's Five Forces model to Paula what would be the primary reason she would want to use this type of analysis?

A. To help Paula choose a clothing business focus.
B. To help Paula evaluate the attractiveness of the clothing industry.
C. To help Paula evaluate and execute business goals.
D. All of the above.

Answer 1

The primary reason Paula would want to use Porter's Five Forces model is to help her evaluate the attractiveness of the clothing industry.

Step-by-step explanation:

The primary reason Paula would want to use Porter's Five Forces model is B. To help Paula evaluate the attractiveness of the clothing industry.

Porter's Five Forces is a framework used to analyze the competitive forces within an industry. It helps determine how profitable and attractive an industry is by assessing the bargaining power of suppliers, bargaining power of buyers, threat of new entrants, threat of substitutes, and intensity of competitive rivalry.

By performing a Five Forces analysis, Paula can gain insights into the level of competition, the potential for profitability, and the overall attractiveness of the clothing industry. This can guide her decision-making process, help her identify strategic opportunities, and make informed business decisions.