The primary objective of Porter's five forces model is to understand the profit potential of industries. break down a firm's value chain activities into primary and support. understand valuable, rare, and hard-to-imitate resources. reduce the gap between the value of a firm's product and its cost of production.

Question

Ronald Blair

Business

8 May, 07:12

The primary objective of Porter's five forces model is to understand the profit potential of industries. break down a firm's value chain activities into primary and support. understand valuable, rare, and hard-to-imitate resources. reduce the gap between the value of a firm's product and its cost of production.

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Answers (1)

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Sandra Keith · Answer 1

to understand the profit potential of industries

Explanation:

As we know that

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

The aim of this porter five forces model is to determine the level of competition plus it is also understanding the potential of profit of the industries

Hence, the first option is correct