Porter's five forces that shape strategy

Who designed the five forces that shape strategy?

• Academic Michael Porter

• Academic Michael Potter

• Academic Michalel Potler

Porter's five forces that shape strategy are: the treath of new entrants, buying power of buyers, buying power of new suppliers, rivarly among existing competitors and the treath of substitute products.

• True

• False

This force analyzes how much power and control a company’s supplier (also known as the market of inputs) has over the potential to raise its prices or to reduce the quality of purchased goods or services, which in turn would lower an industry’s profitability potential.

This sentence defines which one of the listed forces?

• Threat of substitute products

• Bargaining power of buyers

• Rivalry among existing competitors

• None of the listed forces

Energy drink like Redbull is usually not considered a competitor of coffee brands such as Nespresso or Starbucks. However, since both coffee and energy drink fulfill a similar need (i.e. staying awake/getting energy), customers might be willing to switch from one to another if they feel that prices increase too much in either coffee or energy drinks.

This is an example of which force:

• Threat of substitute products

• Rivalry among existing competitors

• Bargaining power of buyers

• None of the above

Trains and cars are substitutes that threath the airline industry.

• True

• False

KLM, American Airlines, Delta Air Lines are basic examples of new entrants in the airline industry.

• True

• False

Which of the five foces examines how intense the current competition is in the marketplace, which is determined by the number of existing competitors and what each competitor is capable of doing?

• The threat of new entrants

• Rivalry among existing competitors

• Threat of substitute products

• Bargaining power of suppliers

The higher these barriers to entry, the smaller the threat for existing players.

• True

• False

In the airline industry, brand loyalty doesn’t seem to be that high. Some airline companies are trying to change this with frequent flyer programs aimed at rewarding customers that come back to them from time to time.

The sentence above is related to which of the forces that are listed?

• None of the below

• Bargaining power of suppliers

• Bargaining power of buyers

• Threat of substitute products

It can be said that rivalry among existing competitors in the airline industry is high.

• True

• False