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. What's the difference between Porter's 5 forces and SWOT analysis?

    Learn about when and how to use SWOT analysis versus Porter's five forces. Learn what sets the analysis tools apart and how ... Read Answer >>
  2. 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 >>
  3. If the government was considering a change in the federal policy on taxation of ...

    The correct answer is d): Regulatory risk refers to the financial uncertainty surrounding legislative changes at the federal, ... 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's the difference between monetary policy and fiscal policy?

    Learn how monetary policy refers to bank actions to control interest rates and money supply, while fiscal policy refers to ... Read Answer >>
  6. A brokerage customer has $10,000 in securities and a credit balance of $4,000 ... ...

    The correct answer is d The market value of the person's equity is equal to the market value of the securities plus the credit ... Read Answer >>
Related Articles
  1. Managing Wealth

    Using Porter's 5 Forces To Analyze Stocks

    These five qualitative measures allow investors to draw conclusions about a corporation that are not apparent on the balance sheet.
  2. Markets

    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 ...
  3. Markets

    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. Markets

    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.
  5. Investing

    Analyzing Apple's Threat of Substitutes (AAPL)

    Porter’s Five Forces is a favorite tool for analyzing the profitability of a company and the competitive forces that affect it. The analytical framework looks at the rivalry within an industry ...
  6. Markets

    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.
  7. Investing

    Apple: Porter's 5 Forces Analysis

    Even though Apple is a well established company, there is always a threat from competitive forces.
  8. Investing

    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. Markets

    Analyzing Porter's Five Forces on Goldman Sachs (GS)

    Read a Porter's Five Forces breakdown of America's largest stand-alone investment bank, Goldman Sachs, including how the bank is protected from competition.
  10. Markets

    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. Porter Diamond

    A model that attempts to explain the competitive advantage some ...
  3. National Diamond

    A theory of competitive advantage developed by Harvard Business ...
  4. Business Recovery Risk

    A company's exposure to loss as a result of damage to its ability ...
  5. Contestable Market Theory

    An economic concept that refers to a market in which there are ...
  6. Fiscal Policy

    Government spending policies that influence macroeconomic conditions. ...
Hot Definitions
  1. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  2. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  3. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  4. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  5. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  6. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
Trading Center