pacmandefense

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 suppliers.

B) The bargaining power of buyers.

C) The bargaining power of employees.

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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.

sabaruch

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.

sabaruch

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

A) exit barriers.

B) threat of substitutes.

C) bargaining power of suppliers.

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Entry barriers should be considered, not exit barriers.

sabaruch

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

A) rivalry among existing suppliers.

B) bargaining power of suppliers.

C) entry barriers.

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

sabaruch

Long-term profitability is determined by:

A) cost leadership.

B) industry structure.

C) supply and demand.

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Industry structure determines long-term profitability

sabaruch

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.

sabaruch

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

A) Availability of resources such as cheap labor.

B) Bargaining power of buyers.

C) Entry of new competitors.

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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

sabaruch

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) A sharp increase in the global demand for widgets.

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

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.