Which of the following lists the components of Porter's Five Forces?

• A. Price elasticity, brand loyalty, distribution channels, and advertising spend
• B. Threat of new entrants, bargaining power of buyers, threat of substitutes, industry rivalry, and supplier power
• C. Threat of new entrants, bargaining power of buyers, threat of substitutes, and supplier power
• D. Market size, growth rate, profitability, and competition

Answer: (B)

Porter’s Five Forces framework looks at what drives competition and profitability in an industry. The five forces are: threat of new entrants, bargaining power of buyers, threat of substitutes, industry rivalry (competitive rivalry among existing firms), and supplier power (bargaining power of suppliers). The option that lists all five of these forces matches the model precisely, showing how barriers to entry, buyer leverage, substitute products, competitive intensity, and supplier leverage shape an industry's attractiveness and margins. Other choices mix in factors that aren’t part of Porter’s five forces, like price elasticity, brand loyalty, distribution channels, advertising spend, market size, growth, or general competition, which don’t capture the full framework.