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Which of the following is a drawback of Porter’s five forces model? Multiple Choice Managers cannot determine the changing speed of an industry or the rate of innovation. It fails to provide a basis for deriving implications for a firm’s strategic position within an industry. The model describes competition narrowly as a firm’s closest competitors. The model fails to consider that threat of substitutes can come from outside a given industry.

Answer :

Answer: Managers cannot determine the changing speed of an industry or the rate of innovation.

Explanation:

A drawback of Porter’s five forces model is that managers cannot determine the changing speed of an industry or the rate of innovation.

With Porter's five-forces-plus-complements model, it is difficult for an economic entity to determine the rate if innovation in an organization or the changing speed of the industry and this means that the managers have to repeat their analysis constantly so as to have a picture of their industry that is more accurate.

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