A:

Which of these is not one of Porter's 5 competitive forces?



a) Threat if new entrants
b) Threat of subsitute goods
c) Rivalry from existing competition
d) Threat of government policy




Correct answer: Government policy influences Porter's 5 forces but is not considered one of the factors (d)



RELATED FAQS
  1. Besides Porter's 5 forces, what other forces shape industry in the 21st century?

    Know the forces, in addition to Porter's 5 forces, that influence 21st century corporate structure to effectively plan your ... Read Answer >>
  2. What's the difference between Porter's 5 forces and PEST analysis?

    Learn the key differences between Porter's five forces and PEST analysis. Understand the objectives of each analysis and ... Read Answer >>
  3. What is a common strategy traders implement when using the Force Index?

    Learn about how traders and analysts use a momentum oscillator called the force index to measure trend strength for a given ... Read Answer >>
  4. What are the best technical indicators to complement the Force Index?

    Find out which technical tools pair best with the Force Index to generate and confirm trading signals, such as lagging indicators ... Read Answer >>
  5. What impact does economics have on government policy?

    Learn about the impact of economic conditions on government policy and understand how governments engineer economic conditions ... Read Answer >>
  6. How does the government influence the securities market?

    Governments generally say they don't like to take an active role in the securities market (except for regulating it); however, ... Read Answer >>
Related Articles
  1. Professionals

    Porter's Five Forces

    Porter’s Five Forces is an analysis scheme created by Harvard Business School professor Michael E. Porter. Using this analysis tool, business managers can gauge the level of competition within ...
  2. Investing Basics

    Industry Handbook: Porter's 5 Forces Analysis

    If you are not familiar with the five competitive forces model, here is a brief background on who developed it, and why it is useful. The model originated from Michael E. Porter's 1980 book ...
  3. Stock Analysis

    Analyzing Porter's Five Forces on Delta Airlines (DAL)

    Learn about Porter's Five Forces, a framework used to analyze external threats to companies, and discover which forces pose the biggest threats to Delta.
  4. Fundamental Analysis

    Analyzing Porter's Five Forces on Apple (AAPL)

    Evaluate Apple's position in the marketplace by looking at it through the perspective of the Porter Five Forces Model for industry analysis.
  5. Stock Analysis

    Analyzing Porter's Five Forces on JPMorgan Chase (JPM)

    Examine the major money-center bank holding firm, JPMorgan Chase & Company, from the perspective of Porter's five forces model for industry analysis.
  6. Stock Analysis

    Analyzing Porter's Five Forces on Verizon (VZ)

    Examine Verizon's position in the wireless service industry by considering Porter's Five Forces and determining the company's biggest potential threats.
  7. Stock Analysis

    Analyzing Porter's Five Forces on Electronic Arts (EA)

    Explore Porter's Five Forces as they apply to video game producer Electronic Arts; learn which external forces pose the biggest threats to EA's business.
  8. Analyzing Apple's Threat of New Entrants (AAPL)

    Understanding the competitive forces within an industry can be as simple as looking at five factors. There is the rivalry within the industry itself, but there is also a collective power a company’s ...
  9. Analyzing Netflix's Threat of New Entrants (NFLX)

    In 1979, a Harvard Business School professor named Michael E. Porter published a model of competitive forces. The model, called Porter’s Five Forces, is an important framework for qualitative ...
  10. Stock Analysis

    Analyzing Porter's 5 Forces on Starbucks (SBUX)

    Examine the industry position of Starbucks Coffee Company from the perspective of the company using the Porter's Five Forces model.
RELATED TERMS
  1. Porter's 5 Forces

    Named after Michael E. Porter, this model identifies and analyzes ...
  2. National Diamond

    A theory of competitive advantage developed by Harvard Business ...
  3. Six Forces Model

    A strategic business tool that helps businesses evaluate the ...
  4. Internal Audit

    The examination, monitoring and analysis of activities related ...
  5. Business Recovery Risk

    A company's exposure to loss as a result of damage to its ability ...
  6. Fiscal Policy

    Government spending policies that influence macroeconomic conditions. ...
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center