Question

The most powerful and widely used conceptual tool for diagnosing the principal competitive pressures in a market is

a. the five forces framework.
b. PESTEL.
c. the driving forces model.
d. strategic group mapping.
e. SWOT analysis.

Answer 1

The correct answer is letter "A": the five forces framework.

Step-by-step explanation:

Porter's Five Forces is an analysis scheme created by Harvard Business School professor Michael E. Porter (born in 1947). It allows business managers to gauge the level of competition within their company's industry, and thus assess current and potential lines of business. The ultimate goal of this analysis is to help managers set their profitability expectations because profitability decreases as competition increases.