Which framework is often used to analyze the competitiveness of an organization? O a. Peter's Competitive Forces Model O b. Hilbert's Competitive Analysis Model O c. Porter's Competitive Forces Model O d. Fredrick's Competitive Analysis Model

Which framework is often used to analyze the competitiveness of an organization? O a. Peter's Competitive Forces Model O b. Hilbert's Competitive Analysis Model O c. Porter's Competitive Forces Model O d. Fredrick's Competitive Analysis Model

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Porter five forces model, developed by Michael E. Porter of Harvard University in 1979, holds the purpose to analyse theindustry in order to determine the level of intensity regarding the competition and attractiveness of the industry. Theattractiveness of an industry is measured in terms of profit; more profitability means a more attractive industry and lowprofitability means a low attractive industry. Porter’s Five Forces model is a powerful management tool for analysing thecurrent industry profitability and attractiveness by using the outside-in perspective. Within the last decades, the model hasattracted some criticism because of the developing Internet economy. Due to an increasing significance of Digitalization,Globalization and Deregulation, the industry structure of the ‘Old Economy’ changed fundamentally. The ‘New Economy’ isnot comparable with the ‘Old Economy’, which is the basis of the Five Forces model. Moreover, the last decades haveshown that Information Technology…