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Question: 1 / 410

Which of the following is NOT included in Porter's Five Forces?

Buyer Power

Supplier Power

Business Growth

Porter's Five Forces framework is a tool used for analyzing the competitive environment of an industry. It includes five specific elements that identify the competitive dynamics within a market.

Buyer power refers to the ability of customers to influence pricing and quality, affecting industry profitability. Supplier power, on the other hand, pertains to the influence that suppliers have over the price of goods and services, impacting overall costs. Rivalry among existing competitors focuses on the intensity of competition within the industry itself, which can range from fierce to moderate based on market conditions.

Business growth is not one of the five forces outlined by Porter. It is an outcome or goal that businesses aim for as they navigate their competitive landscape, but it does not directly define the factors influencing the competitive environment. Understanding the five forces helps businesses recognize their position and identify strategies for improvement, while business growth goals stem from leveraging insights gained through this analysis. Thus, it is the unnecessary choice in the context of the model.

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Rivalry among existing competitors

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