Porter's Five Forces Model: Components and Analysis

Not a Component of Porter's Five Forces Model

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Question

Which of the following is not a component of Porter's Five Force Model of industry competition?

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A. B. C. D. E. F.

F

Porter's Five Force Model of industry competition, named after its creator, famed Harvard professor Micheal Porter, is used to measure the amount of competition within industries. The five forces within this model are as follows:

Threat of new entrants -

Threat of substitute products -

Bargaining buyer of buyers -

Bargaining power of suppliers -

Rivalry of existing firms -

A shift in any of these threats will lead to a change in industry competition. As you can see, "threat of technological obsolescence" is not named as an explicit threat within the Five Forces Model.