What model is used for strategic planning to create a competitive advantage based on the principle that a sound strategy should fit the company's external environment?
Understand the Problem
The question is asking about a specific model used in strategic planning that helps a company develop a competitive advantage by aligning its strategy with the external environment. This involves understanding how a company's strategy will perform in relation to market conditions, competitors, and other external factors.
Answer
Porter's Five Forces Model.
The final answer is Porter's Five Forces Model.
Answer for screen readers
The final answer is Porter's Five Forces Model.
More Information
Porter's Five Forces Model is used for strategic planning by analyzing competitive forces in the industry and identifying areas where a company can gain a competitive advantage. These forces include rivals, potential new entrants, suppliers, customers, and substitute products.
Tips
Confusing Porter's Five Forces with models like SWOT or PEST analysis. Ensure you're focusing on industry competitiveness and external market forces.
Sources
- Principles of Marketing - Past Quiz PDF | Quizgecko - quizgecko.com
- Porter's Five Forces Explained and How to Use the Model - investopedia.com
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