Which of the following is NOT one of the five forces in Porter's model?

Which of the following is NOT one of the five forces in Porter's model?

• A. Threat of new entrants
• B. Threat of substitute products
• C. Bargaining power of advertisers
• D. Intensity of competitive rivalry

Answer: (C)

The identification of the bargaining power of advertisers as NOT one of the five forces in Porter's model is accurate because Porter's Five Forces framework focuses on the dynamics that shape competitive interactions within an industry. These five forces include: 1. The threat of new entrants, which assesses how easily new competitors can enter the market, influencing the competitive landscape and pricing power of existing firms. 2. The threat of substitute products, which examines the likelihood that customers will switch to alternative offerings, impacting demand for a company’s products. 3. The bargaining power of suppliers and buyers, which evaluates how much influence those external parties have over the pricing and terms of services or products. 4. The intensity of competitive rivalry, which looks at the degree of competition among existing firms in the industry, affecting profitability and strategic behavior. The bargaining power of advertisers does not fit into this framework, as it is not one of the core forces that shape industry competition. While advertisers play a role in marketing strategies and may influence brand perception, their bargaining power is not recognized within Porter's established structure for analyzing industry competitiveness. In essence, the five forces that are crucial to this model focus on market competition and economic interactions rather than advertising dynamics, making the correct identification of this option a clear distinction

The identification of the bargaining power of advertisers as NOT one of the five forces in Porter's model is accurate because Porter's Five Forces framework focuses on the dynamics that shape competitive interactions within an industry. These five forces include:

1. The threat of new entrants, which assesses how easily new competitors can enter the market, influencing the competitive landscape and pricing power of existing firms.

2. The threat of substitute products, which examines the likelihood that customers will switch to alternative offerings, impacting demand for a company’s products.

3. The bargaining power of suppliers and buyers, which evaluates how much influence those external parties have over the pricing and terms of services or products.

4. The intensity of competitive rivalry, which looks at the degree of competition among existing firms in the industry, affecting profitability and strategic behavior.

The bargaining power of advertisers does not fit into this framework, as it is not one of the core forces that shape industry competition. While advertisers play a role in marketing strategies and may influence brand perception, their bargaining power is not recognized within Porter's established structure for analyzing industry competitiveness.

In essence, the five forces that are crucial to this model focus on market competition and economic interactions rather than advertising dynamics, making the correct identification of this option a clear distinction