Question: The basic idea behind the Five Forces model is that Resource stocks and flows determine profitability the higher the competitive pressure, the lower the profitability

The basic idea behind the Five Forces model is that Resource stocks and flows determine profitability the higher the competitive pressure, the lower the profitability of the industry a firm's resources and capabilities determine the profitability of the industry the five basic activities of the firm are linked together in a value chain political, economic, social and technological factors determine industry profitability

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