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Question & Answer1
Understand Question2
Review Options3
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Explore TopicChoose the Best Answer
A
It helps identify competitive pressures that require alignment of resources and capabilities.
B
It focuses solely on internal company structure, ignoring external competitive forces.
C
It suggests that market share is the only factor in strategic alignment.
D
It emphasizes the importance of employee satisfaction over competitive analysis.
Understanding the Answer
Let's break down why this is correct
Answer
Porter’s Five Forces model examines the competitive forces that shape an industry—supplier power, buyer power, threat of substitutes, threat of new entrants, and rivalry among existing firms. By mapping these forces, a company sees the external pressures that must be addressed in its strategy. Strategic alignment then means shaping the company’s internal resources, capabilities, and actions so they fit the realities revealed by the forces, ensuring the strategy is both realistic and competitive. For example, if the model shows high buyer power, a firm might align by focusing on differentiation and customer loyalty to mitigate that pressure. Thus, the Five Forces provide the environmental blueprint that a business uses to align its strategy with external realities.
Detailed Explanation
Porter’s Five Forces shows the five big pressures that an industry faces: rivalry, supplier power, buyer power, threat of new entrants, and substitutes. Other options are incorrect because Some think the model only looks at a company’s internal structure; Others say Porter’s model cares only about who has the most sales.
Key Concepts
Porter's Five Forces
Strategic alignment
Topic
Business Strategy
Difficulty
medium level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1In analyzing a company's competitive advantage using Porter's Five Forces framework, which of the following best describes how a strong value proposition can influence buyer power?
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Question 2How does Porter's Five Forces model relate to the concept of strategic alignment within a business strategy framework?
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3
Question 3In analyzing a company's competitive advantage using Porter's Five Forces framework, which of the following best describes how a strong value proposition can influence buyer power?
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Question 4How does Porter's Five Forces model relate to the concept of strategic alignment within a business strategy framework?
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Question 5In analyzing a company's competitive advantage using Porter's Five Forces framework, which of the following best describes how a strong value proposition can influence buyer power?
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