What is analysed using the Porter’s Five Forces Analysis?

What is analysed using the Porter’s Five Forces Analysis?
A . What the organisation is trying to achieve
B . Things that place a project at a disadvantage
C . Likelihood of Government changes
D . Competitive position of an organisation

View Answer

Answer: D

Explanation:

Porter’s Five Forces Analysis is used to analyze the competitive position of an organization. This framework helps in evaluating the attractiveness and profitability of an industry by examining five key forces: the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services, and the intensity of competitive rivalry. By understanding these forces, an organization can develop strategies to enhance its competitive position and profitability within its industry.

Reference: Business Analysis.pdf, "An analysis tool that helps to evaluate an industry’s profitability and hence its attractiveness is Michael Porter’s Five Forces model".