Which of the following is NOT one of the forces in Porter's Five Forces model?

• A. Threat of new entrants
• B. Bargaining power of suppliers
• C. Market equilibrium
• D. Threat of substitute products

Answer: (C)

Verified step by step guidance

1. Step 1: Understand Porter's Five Forces model, which is a framework used to analyze the competitive forces within an industry that affect its profitability.
2. Step 2: Recall the five forces in the model: (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 or competitive rivalry.
3. Step 3: Review the options given: 'Threat of new entrants', 'Bargaining power of suppliers', 'Market equilibrium', and 'Threat of substitute products'.
4. Step 4: Identify which option does not belong to the five forces. 'Market equilibrium' is an economic concept describing supply and demand balance, not a force in Porter's model.
5. Step 5: Conclude that 'Market equilibrium' is NOT one of the forces in Porter's Five Forces model.