Thinking of Michael Porter’s Industry Structure Analysis (commonly referred to as Five Forces Analysis), the content of the centre circle is about:

Thinking of Michael Porter’s Industry Structure Analysis (commonly referred to as Five Forces Analysis), the content of the centre circle is about:
A . Governmental regulation of competition within an economy
B . Competitive rivalry within the industry
C . Governmental interference in an industry
D . Competitor price-cutting to increase market share

View Answer

Answer: B

Explanation:

Competitive rivalry within an industry.

This can be quite an important point, and why I have such a dislike of the less formal title for the model – the model is about entire industries, not just about a single firm – this is commonly misun-derstood by students (and sadly, some tutors) – and the original Porter title – ‘Industry Structure Analysis’ – helps us understand that, I think. I find this tool of analysis to be very helpful in under-standing behaviour within sectors, despite criticism of the model and its age from some commenta-tors

The other answers shown are mere fictions.