Which of the following is NOT one of the five forces determining the level of competition in an industry?

The correct choice is identified as the factor that does not belong among the five forces that shape competitive dynamics within an industry. The five forces framework, developed by Michael Porter, typically includes the threat of new entrants, bargaining power of suppliers, bargaining power of buyers, the threat of substitute products, and the intensity of competitive rivalry among existing firms.

Market saturation, while it may influence competitive conditions, is not explicitly part of this model. It refers more to the stage of market development and how much of the market demand has been met, rather than a competitive force like the others listed. Market saturation can affect competition indirectly, but it does not represent a specific force that can be analyzed in the same way as the others.

In contrast, the other elements—threat of new entrants, bargaining power of suppliers, and bargaining power of buyers—are all essential forces outlined in Porter’s model that directly influence how companies compete within a given market. Understanding these dynamics helps businesses make strategic decisions to enhance their competitive positioning.