Consider the following statements with reference to Porter's five forces model of competitive analysis
1. As rivalry among competing firm intensifies, generally industry profits decline or in few cases, industry becomes inherently unattractive.
2. Whenever new firms are allowed to enter a particular industry, the intensity of competitiveness among firms becomes haphazard.
3. Generally competitive pressures arising from the substitute products decrease as the relative price of substitute products decline.
4. Bargaining power of suppliers affects the intensity of competition.
A. Statements 1 and 2 are false, others are true
B. Statements 1 and 4 are true, others are false
C. Statements 2, 3 and 4 are true, but 1is false
D. All the statements are true
Answer: Option B
Related Questions on Strategic Management
Strategy is developed by the visionary chief executive in ___________ mode of strategic management
A. planning mode
B. adaptive mode
C. strategic mode
D. entrepreneurial mode
Stability strategy is a ____________ strategy
A. corporate level
B. business level
C. functional level
D. strategic level
What are the means by which long term objectives will be achieved?
A. Strategies
B. Policies
C. Strength
D. Opportunities
Marketing strategy is a ___________ type of strategy
A. business level
B. Growth strategy
C. corporate strategy
D. functional strategy
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