Which model is used to describe external forces affecting an organization's strategy and ability to compete?

The model that is utilized to describe external forces affecting an organization's strategy and its ability to compete is the competitive forces model. This model highlights the dynamics of competition within an industry, particularly through frameworks like Porter's Five Forces, which examines factors such as the threat of new entrants, bargaining power of suppliers and customers, the threat of substitute products, and the intensity of competitive rivalry. By analyzing these competitive forces, organizations can better understand their market environment, enabling them to devise strategies that enhance their competitive standing.

In contrast, network economics focuses on the cost structures and benefits of connectivity within markets. Competitive advantage pertains to the unique attributes or capabilities that allow a firm to outperform its rivals. Demand control generally refers to aspects of managing and influencing consumer demand rather than analyzing external competitive factors. Hence, the competitive forces model distinctly provides a framework for evaluating the competitive pressures that impact an organization's strategic planning and market performance.