How many forces are defined in Porter's Five Forces framework?

• A. Four
• B. Five
• C. Six
• D. Seven

Answer: (B)

Porter's Five Forces framework analyzes how five distinct forces shape competition and profitability within an industry. These forces are: rivalry among existing competitors, threat of new entrants, threat of substitutes, bargaining power of suppliers, and bargaining power of buyers. Because the model is explicitly named Five Forces, there are five forces defined. Understanding each helps explain why some industries are highly competitive and less profitable while others offer stronger margins.