Michael Porter has identified five forces that determine the intrinsic long-term attractiveness of market. According to the model, which of the following are true?

A. A segment is unattractive if it already contains numerous aggressive competitors.

B. A segment is unattractive if it is stable or declining.

C. A segment is unattractive if it has high entry barriers and low exit banders.

D. A segment is unattractive if the company’s suppliers are able to raise prices.

E. A segment is unattractive when there are actual or potent substitutes for the product.

Choose the most appropriate answer from the options given below:

Correct option is D

According to Michael Porter's Five Forces model, the following statements are true: i. A segment is unattractive if it already contains numerous aggressive competitors. This is true because intense competition can lead to price wars and reduced profitability. ii. A segment is unattractive if it is stable or declining. This is also true because a stable or declining market may indicate limited growth opportunities and potential decline in demand. iii. A segment is unattractive if the company's suppliers are able to raise prices. This is true because if suppliers have the power to increase prices or control the supply of key inputs, it can reduce a company's profitability and make the segment less attractive. iv. A segment is unattractive when there are actual or potential substitutes for the product. This is true because the presence of substitutes can limit a company's pricing power and market share, making the segment less attractive. v. A segment is unattractive if it has high entry barriers and low exit barriers. This statement is not mentioned in the original model. It should be noted that high entry barriers can make it difficult for new competitors to enter the market, which can be favourable for existing players. Low exit barriers may make it harder for companies to exit a market, leading to increased competition and reduced profitability. However, it is not explicitly mentioned as a factor in determining market attractiveness in Porter's Five Forces model.