Six Sigma Global Institute (SSGI) Project Management Professional Certification Practice Exam

Which of the following is NOT one of Porter's Competitive Forces?

1. Power of suppliers

2. Power of buyers

3. Threat of outdated technology

4. Rivalry among firms

The correct answer is: Threat of outdated technology

The correct choice, which states that the "Threat of outdated technology" is not one of Porter's Competitive Forces, is based on Porter's framework, also known as the Five Forces Model. This model identifies five key forces that influence competition within an industry and the overall profitability of firms. The forces are as follows: 1. Power of suppliers: This force assesses how much power suppliers have to drive up prices of inputs. 2. Power of buyers: This force evaluates the ability of buyers to affect pricing and quality. 3. Threat of new entrants: This examines how easy or challenging it is for new competitors to enter the market. 4. Threat of substitutes: This concerns the presence of alternative products or services that can replace the industry's offerings. 5. Rivalry among firms: This measures the intensity of competition among existing firms in the industry. The "Threat of outdated technology" is not included in this model as a standalone competitive force. Instead, it would generally fall under the broader scope of innovation and technological advancement, which can indirectly impact the competitive landscape but does not define the competitive forces on its own. Understanding these five forces is essential for analyzing competition and formulating strategic responses, and recognizing what is not included, like outdated technology, helps clarify the