**Understanding Porter's Five Forces**According to Porter’s Five Forces approach, the overall goal of applying the Five Forces analysis to an industry is to make a judgment about its _____.- ○ future volatility- ○ revenue streams- ○ market share- ○ industry profitability**Explanation:** Porter's Five Forces is a framework for analyzing the level of competition within an industry and business strategy development. The Five Forces identified by Porter are:1. **Competitive Rivalry** - This looks at the number and strength of your competitors. A high number of competitors can mean lower margins and market saturation. 2. **Supplier Power** - Assesses how easy it is for suppliers to drive up prices. If suppliers have significant power, they can affect the supply chain and margins.3. **Buyer Power** - This is the extent to which customers can put the company under pressure, which also affects the customer’s price sensitivity.4. **Threat of Substitution** - Analyzes the likelihood of customers finding an alternative way of doing what you do. If substitution is easy, competitive pressures increase.5. **Threat of New Entry** - Considers how easy or difficult it is for new competitors to enter the market. High barriers to entry protect the positions of existing companies.The answer to the question is "industry profitability," as the purpose of the Five Forces analysis is to determine the potential profitability of an industry by analyzing these factors.

Organizations function in an environment that keeps on changing. It is important to conduct…

Answered: According to Porter's Five Forces…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

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According to Porter's Five Forces approach, the overall goal of applying the Five Forces analysis to an industry is to make a judgment about its O future volatility O revenue streams O market share O industry profitability