Case Interview Prep

Category - Economics

The following are components of Porter’s Five Forces model EXCEPT:
  1. bargaining power of suppliers
  2. bargaining power of buyers
  3. bargaining power of banks
  4. competitive rivalry
Explanation
Answer: C - Bargaining power of banks is not a component of Porter’s Five Forces model.

Key Takeaway: The model has five components as follows: the bargaining power of suppliers, the bargaining power of buyers, the threat of potential new entrants, threat of substitutes, and competitive rivalry. Bargaining power of banks is not a component of the model.
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