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Which of the following is NOT a correct observation related to Porter's Five Forces? A.Intense competition within an industry will encourage firms to engage in

Which of the following is NOT a correct observation related to Porter's Five Forces?

A.Intense competition within an industry will encourage firms to engage in price wars, invest in innovative and new products, and spend money on promotions, advertising and marketing.

B.Suppliers find themselves in a powerful position when the resource they supply is scarce or unique and the customers they provide supplies to are small.

C.The threat of new entrants will be highest when barriers to entry are minimal, investment cost is low, products are homogenous, and the regulatory environment has little impact.

D.Buyers find themselves in a powerful position when the size of their orders is large, or if they find it easy and inexpensive to switch to alternative suppliers.

E.The threat of substitutes exists when customers have low switching costs and the price of the substitute can match the price of the product offered.

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