Question

To determine why a company is more profitable than others in the same industry, a strategist should use: A. A VRIO Analysis B. A PESTLE Analysis C. A SWOT analysis D. A Porter's Five Forces analysis

Answer 1

The answer is D

Step-by-step explanation:

Option D is correct. Porter's five forces analysis is used to determine the intensity of competition in an industry.

This intensity determines how profitable firms in the industry will be.

The five forces are:

1. Bargaining power of consumers

2. Bargaining power of producers.

3. Threat of new entrants - this is the new competition coming into the industry

4. Threat of substitute goods.

5. Competitive rivalry.