Question

Which of the following is not included in Michael Porter's Five Forces Model? a. Cost Leadership b. Supplier Power c. Threat of new entrants d. Buyer power

Answer 1

Answer:

a. Cost Leadership

Explanation:

Porter five forces of the model refers to the rivalry among competitors, bargaining power of suppliers, bargaining power of buyers, the threat of new entrants, the threat of substitution.  

The competition between rivals deals with the competitors ' strengths and weaknesses so that the business does the planning appropriately.

The supplier's bargaining power indicated that the shift in the price of the product caused by the supplier's offer and the consumer is motivated to the product as the product is special which affects the overall profit

The buyer's bargaining power relates with the number of buyers and how many orders a single buyer places.

The threat of new entrants will affect the company's total position if the competitor comes on the market.  

The threat of substitution is an alternate way of producing the goods and services that can also weaken your position and have a direct impact on profitability.