Assumptions of the Five Forces model

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Assumptions of the Five Forces model
The Five Forces model has two basic premises. The first is that the goal of a business is long-term profitability. The second is that the intensity of competition in an industry is neither a matter of coincidence or bad luck. Competition is rooted in an industry's economic structure.

Assumption in Porter's 5 Forces
Yet another major assumption of Porter's Five Forces Framework is that he views all industries as based on COMPETITION. However there are important ex...Sign up

Assumption: Product (Services) Markets...
There is yet another important assumption in the Porter Model: that firms are competing only in PRODUCT AND SERVICES MARKETS (where firms compete for ...Sign up


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