Six Sigma Green Belt

Category - Black Belt

The following are components of Porter’s five forces EXCEPT:
  1. threat of complementary products
  2. bargaining power of suppliers
  3. bargaining power of customers
  4. threat of new entrants
Explanation
Answer: A - Threat of complementary products is not a component of Porter’s five forces.

Key Takeaway: Porter’s five forces is a business strategy framework that allows organizations to analyze those threats and potentials in a new market. The goal of using this framework is to uncover such factors as the bargaining power of suppliers and customers as well as the presence of competition to determine whether the organization should promote its products in the market.
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