According to Michael Porter, companies are likely to be more successful when the five competitive forces are:

• A. strong, increasing competition and reducing profits
• B. unpredictable, creating uncertainty in the market
• C. weak, allowing firms to achieve higher profitability
• D. balanced, ensuring equal opportunities for all firms

Answer: (C)

Verified step by step guidance

1. Understand that Michael Porter's Five Forces framework analyzes the competitive environment of an industry to determine its attractiveness and profitability.
2. Recall that the five forces include: the threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products or services, and industry rivalry.
3. Recognize that when these forces are strong, competition intensifies, which typically reduces profitability for firms within the industry.
4. Conversely, when these forces are weak, firms face less competitive pressure, enabling them to achieve higher profitability.
5. Therefore, the most successful companies operate in environments where the five competitive forces are weak, allowing them to sustain better profit margins.