Question

In Porter's model of competitive forces, which of the following is not considered a competitive force?

a) Substitute products
b) Disruptive technologies
c) Customers
d) Suppliers
e) New market entrants

Answer 1

In Porter's model of competitive forces, customers are not considered a competitive force. The model includes five competitive forces: New market entrants, supplier, substitute products, and disruptive technologies.

Step-by-step explanation:

In Porter's model of competitive forces, customers are not considered a competitive force. The model, also known as Porter's Five Forces, includes five competitive forces that affect the industry and its profitability. These forces are:

1. New market entrants: new companies entering the market and increasing competition.
2. Supplier: suppliers' power to influence prices and terms.
3. Substitute products: products that can replace the company's offerings.
4. Disruptive technologies: new technologies that can disrupt the industry.

Customers, on the other hand, are considered as the beneficiaries or the target market for the industry, rather than a competitive force.