土豆妮

Porter’s five factors for determining the intensity of competition within an industry are least likely to include:

A) bargaining power of buyers.

B) regulatory environment.

C) threat of new entrants.

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Porter’s five factors are: rivalry among the existing competitors, threat of new entrants, threat of substitute products, bargaining power of buyers, and bargaining power of suppliers.

土豆妮

According to Porter's Five Forces, which of the following should least likely be considered when analyzing a firm's competitive strategy?

A) The bargaining power of employees.

B) The bargaining power of suppliers.

C) The bargaining power of buyers.

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The bargaining power of buyers and bargaining power of suppliers are relevant, but the bargaining power of employees is not one of the Five Forces.

土豆妮

Which of following is NOT one of Michael Porter’s factors used to determine competition in an industry?

A) Economies of scale.

B) Threat of substitute products.

C) Bargaining power of buyers.

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Porter’s five forces are: rivalry among current competitors, threat of new entrants, threat of substitutes, bargaining power of suppliers, and bargaining power of buyers. Economies of scale are a way to lessen the threat of new entrants, but are not the only way to discourage competition.

土豆妮

Which of the following statements about Porter's five factors is FALSE?

A) Rivalry increases when many firms of relatively equal size compete within an industry.

B) Profitability is enhanced by increases in the bargaining power of buyers or suppliers within an industry.

C) The presence of substitute products limits the profit potential of an industry.

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If buyers bargaining power is increased, firms' profitability will decrease.

土豆妮

Significant economies of scale in an industry will reduce industry competition by reducing the:

A) bargaining power of suppliers.

B) threat of substitute products.

C) threat of new entrants.

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Potential new entrants to an industry are discouraged from entering the market, by things like barriers to entry and economies of scale.  Because new entrants represent increased competition, the lack of new entrants will reduce industry competition.

土豆妮

Which of the following is NOT one of Porter’s five factors used to determine industry competition?

A) Bargaining power of buyers.

B) Rivalry among existing competitors.

C) Purchasing power of consumers.

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Purchasing power of consumers is not one of the five forces that Porter believes to determine the intensity of competition within an industry. The other two choices are, along with the threat of new entrants and the threat of substitute products.

土豆妮

Which of the following factors associated with industry competition affect the performance of a firm within that industry?

A) Industry operating leverage.

B) Threat of new entrants.

C) The industry's stage in its life cycle.

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New entrants represent increased competition and lower profitability.

土豆妮

For pharmaceutical companies, the time it takes to get a drug through the clinical trials, regulatory approval and finally to the market is approximately 12 years. In a competitive strategy analysis, this lengthy pre-product period would raise concerns about the:

A) threat of substitutes.

B) rivalry among existing suppliers.

C) bargaining power of buyers.

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It would raise concerns about the threat of substitutes. There is usually a race among pharmaceutical companies to get similar drugs through the process first, because the first drug to the market generally captures a larger market share and creates brand loyalty.