Answer:
The answer is D. to understand the profit potential of firms in an industry.
Explanation:
The five forces are:
Threat of new entrants
Threat of substitute goods
Bargaining power of supppliers
Bargaining power of consumers
Competitive rivalry.
These are the forces in an industry and when all these are well analysed and comprehended, one can identify strategy for profitability.
Threat of new entrants will affect the profitability in the industry.
The competitive rivalry in the industry will also determine profitability.
