Porter's Five Forces was developed by which author and in what year?

• A. Peter Drucker, 1954
• B. Michael E Porter, 1979
• C. Porter, 1990
• D. Michael Porter, 1984

Answer: (B)

The idea being tested is who created Porter's Five Forces and when it was first introduced. Porter's Five Forces analyzes industry competition by looking at five pressures: rivalry among existing competitors, the threat of new entrants, the bargaining power of suppliers and buyers, and the threat of substitutes. This framework was created by Michael E. Porter and first appeared in 1979 in a Harvard Business Review article titled How Competitive Forces Shape Strategy (and later expanded in his book Competitive Strategy in 1980). That combination—Michael E. Porter and 1979—best matches the original development of the concept. The other options mix up the author or the year and do not reflect the initial introduction of the framework.