31.0k views
0 votes
Which of the following offers an example where Porter's five forces are mostly strong and competition is high?

A. A dog walking business.
B. A ski resort.
C. A professional hockey team.
D. All of the above.

User LdM
by
8.2k points

1 Answer

5 votes

Final answer:

A dog walking business is a strong example of an industry where Porter's Five Forces are prominent, indicating a high level of competition due to factors such as low entry barriers, pricing competition, and many alternatives for customers.

Step-by-step explanation:

Students are often tasked with analyzing business environments using Porter's Five Forces, which measure competition level and profitability within an industry. This framework includes analyzing the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services, and the intensity of competitive rivalry. An industry where these forces are mostly strong, and thus competition is high, can be exemplified by a dog walking business. This sector often has low entry barriers, minimal economies of scale, price competition, and numerous alternatives for customers, thereby intensifying competitive rivalry.

User Aaron Okano
by
7.9k points