$5.$ Business$-$Level Strategy and the Five Forces Model

Business$-$Level Strategy and the Five Forces Model

The Five Forces model assists managers in using generic business strategies to protect themselves against the industry forces that reduce the potential for profitability and enhance their competitive advantage. Differentiation and cost$-$leadership strategies allow firms to carve out strong strategic positions, not only to protect themselves against the five forces, but also to benefit from them in their quest for competitive advantage.

This exercise is important because it will help you identify the benefits and the risks associated with choosing either a differentiation strategy or a cost$-$leadership strategy and the forces that impact that choice.

The goal of this exercise is for you to demonstrate your understanding of the Five Forces Model and the benefits and risks associated with choosing the right strategic positioning.

Group the industry forces by the benefits and risks associated with differentiation strategy or a cost$-$leadership strategy. Move each label to the correct drop zone box$/$boxes$.$ Some labels may be used more than once.