Detailed Answer
Answer (C) is correct.
Michael E. Porter has developed a model of the structure of industries and competition. It
includes an analysis of the five competitive forces that determine long-term profitability
measured by long-term return on investment. This analysis results in an evaluation of the
attractiveness of an industry. The five forces are (1) the degree of rivalry among existing
firms; (2) threats of, and barriers to, entry; (3) the threat of substitute products or services;
(4) the threat of buyers’ bargaining power; and (5) the threat of suppliers’ bargaining
power.