Question

Five forces model of michael porter determines attractiveness in long-run does not include

Answer 1

Five forces of Michael porter model -

• Competitive revalry
• Supplier power
• Buyer power
• Threat of substitution
• Threat of new entry .

Answer 2

The five forces model of Michael Porter determines attractiveness in long-run does not include opportunity to alliance.

Explanation:

Opportunity to alliance in layman’s terms meaning coming together of multiple or more companies to create a new and a very unique organization like a joint venture. Each firm retains its own identity and control of itself. The purpose of alliance is to:

• Achieve joint and combined goals

• Reduce risks while increasing income and rewards

• Get resources, leverage them

An alliance is not a merger or a acquisition and it means that it needs a new control and brand new methods with new management skills .