Which of the following is NOT one of Porter’s Five Forces in the analysis of competitive markets?

• A. Threat of substitute products
• B. Bargaining power of suppliers
• C. Government regulation
• D. Threat of new entrants

Answer: (C)

Verified step by step guidance

1. Understand that Porter's Five Forces is a framework used to analyze the competitive forces within an industry that affect its profitability and attractiveness.
2. Recall the five forces identified by Michael Porter: (1) Threat of new entrants, (2) Bargaining power of suppliers, (3) Bargaining power of buyers, (4) Threat of substitute products or services, and (5) Industry rivalry among existing competitors.
3. Compare the given options with the known five forces to identify which one does not belong to the framework.
4. Note that 'Government regulation' is not one of Porter's Five Forces, although it can influence the industry environment, it is not classified as one of the five competitive forces.
5. Conclude that the correct answer is the option that is not part of the five forces, which is 'Government regulation'.