Which framework is used during Industry assessment?

• A. Porter's Five Forces.
• B. SWOT analysis.
• C. BCG matrix.
• D. Ansoff matrix.

Answer: (A)

Porter's Five Forces analyzes industry structure and attractiveness by assessing five competitive pressures that shape profitability: rivalry among existing players, the threat of new entrants, the threat of substitutes, and the bargaining power of both suppliers and buyers. This framework helps you understand how intense competition and the ease or difficulty of entering or exiting the industry will influence potential returns, which is exactly what an industry assessment aims to gauge. The other frameworks serve different purposes— SWOT focuses on internal strengths and external opportunities or threats for a single firm, the BCG matrix helps manage a portfolio of products, and the Ansoff matrix guides growth strategies—so they’re less suited to evaluating industry-wide dynamics.