What tool has the company used for its industry analysis?

A company looking to enter the airline industry has determined that the threat of new entrants is low and the bargaining power of suppliers and buyers is high. There is a highly competitive landscape with numerous substitutions available.

What tool has the company used for its industry analysis?
A . STEEPLED analysis
B . SWOT analysis
C . Segmentation
D . Porter’s Five Forces

View Answer

Answer: D

Explanation:

Porter’s Five Forces is a model that identifies and analyzes five competitive forces that shape every industry and helps determine an industry’s weaknesses and strengths1. The five forces are: competition in the industry, potential of new entrants, power of suppliers, power of customers, and threat of substitute products1. The company has used this tool to assess the attractiveness and profitability of the airline industry by evaluating the intensity of each force.