Michael Porter developed the five forces model. Of the five forces, there were three that had to do with competitive forces and two that had to do with bargaining power forces. What is the primary danger regarding the three competitive forces?

Answer and Explanation:

Porter's Five Forces is a scheme of analysis developed by American Professor Michael E. Porter (born 1947). The ultimate goal of this study is to help managers set their standards of profitability because as competition increases, profitability decreases. Three of the Five Forces involve participants in the industry. These three Forces are related to the danger that customers may choose other entities: the competitors. The other two apply to the vertical actors.

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