Question

Porter's five forces analysis does not include which one of the following considerations?

A) Pricing power.
B) Potential new entrants.
C) Threat of substitutes.
D) Bargaining power of suppliers.

Answer 1

Porter's five forces analysis does not include pricing power.

Step-by-step explanation:

The correct answer is A) Pricing power. Porter's five forces analysis includes four considerations: bargaining power of suppliers, threat of substitutes, potential new entrants, and rivalry among existing competitors. These factors help analyze the competitive forces that shape an industry and determine the industry's attractiveness. Pricing power, which refers to a firm's ability to set prices for its products or services, is not explicitly included in Porter's five forces analysis.