Question

Which of the following is not one of the Porter's five force factor?

• A. New Entrant
• B. Supplier power
• C. Competitor
• D. Political factor

Answer 1

Answer: (D)

Political factor is not one of the Porter's five force factor.The Porter's five forces tool is a simple but powerful tool to evaluate the power of business.Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are: a) Supplier power,

b) Buyer power,

c) Competitive rivalry,

d) Threat of substitution,

e) Threat of new entryAs per Porter's Forces Analysis, supplier power assesses how easily suppliers may drive up prices.As per Porter's Forces Analysis, buyer power evaluates how easy it is for buyers to drive prices down.