Core Concept -Collective Strength of five Competitive Forces

Question

Illustrates the Core Concept of Collective Strength of the Five Competitive Forces?

Answer 1

CORE CONCEPT: The stronger the forces of the competition, harder it becomes for industry members to produce attractive benefits.

The most tremendous casing of a competitively unattractive industry is when all the five forces are generating strong competitive pressures. Fierce to powerful competitive pressures coming from all  the five directions nearly for all time drive industry profitability to unacceptably low levels, often producing losses for lots of industry members and forcing some out of business. Intense competitive pressures from only two or three of the five forces may be sufficient to destroy the circumstances for good profitability and prompt some companies to stop the business.