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

Short-term profitability is determined by:

A) bargaining power.

B) supply and demand.

C) industry structure.

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Supply and demand determines short-term profitability.

土豆妮

According to Porter's Five Forces, all of the following should be considered when analyzing a firm's competitive strategy EXCEPT:

A) threat of substitutes.

B) exit barriers.

C) bargaining power of suppliers.

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Entry barriers should be considered, not exit barriers.

土豆妮

According to Porter's Five Forces, all of the following should be considered when analyzing a firm's competitive strategy EXCEPT:

A) bargaining power of suppliers.

B) rivalry among existing suppliers.

C) entry barriers.

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The rivalry among competitors should be considered, not the rivalry among suppliers.

土豆妮

Long-term profitability is determined by:

A) cost leadership.

B) supply and demand.

C) industry structure.

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Industry structure determines long-term profitability.

土豆妮

Determinants of substitute threats include:

A) relative price performance of substitutes, buyer propensity to substitute, and switching costs.

B) relative price performance of substitutes, presence of substitute inputs, and switching costs.

C) buyer propensity to substitute, presence of substitute inputs, and switching costs.

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The threat of product substitution is driven by availability, prices, and cost of switching to other products in addition to the inclination of the buyer to switch.

土豆妮

Which one of the following is least likely a competitive force according to Porter's article?

A) Bargaining power of buyers.

B) Entry of new competitors.

C) Availability of resources such as cheap labor.

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Porter’s five competitive forces are the threat of new entrants, the threat of substitutes, bargaining power of suppliers, bargaining power of customers, and the rivalry among existing competitors.

土豆妮

Which of the following changes to the widget industry is most likely to result in higher profits for all U.S. widget makers 10 years from now?

A) Creation of a widget-makers’ coalition that brokers all widget deals.

B) A sharp increase in the global demand for widgets.

C) Creation of a series of new products that require widgets as components.

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An increase in demand for widgets is likely to boost profits in the short run, but could attract new competitors. The same can be said for new products that create a wider market for widgets. However, the creation of a widget-makers’ coalition could change the balance of power in the market. One of Porter’s five forces is the bargaining power of suppliers. A coalition that brokers all widget deals could skew the field in favor of producers, raising widget prices and the profits of companies that make them.