For this activity:

In this theme we learned that the five forces model is a framework entrepreneurs use to understand an industry’s structure. Professor Michael Porter developed this important tool. 

Task: Answer the following questions on Porter’s 5 Forces. You may need to refer to you notes or research the internet 

  1. What are the five forces that determine an industry’s profitability? 

  1. How can the threat of substitute products suppress an industry’s profitability? 

  1. How can the threat of new entrants suppress an industry’s profitability? 

  1. What are the major determinants of profitability in most industries? 

  1. How does rivalry among existing firms have the potential to suppress an industry’s profitability? 

  1. What are the two values created by firms when they successfully use the five forces model? 

  1. How does the bargaining power of suppliers have the potential to suppress an industry’s profitability? 


Last modified: Monday, 17 August 2020, 10:24 AM