INDUSTRY ANALYSIS

Porter’s 5 Forces model helps to do what?

• analyze the potential attractiveness and profitability of specific company

• analyze the potential attractiveness and profitability of any start-up at any time

• analyze the potential attractiveness and profitability of specific industry

• analyze the potential attractiveness and profitability of IT start-ups

It is important to analyse the "threat of substitution" as it...?

• provides you an understanding of any products/services produced by your competitors

• provides you an understanding of the need to produce any alternative products/services

• provides you an understanding of all your own products/services

• provides you an understanding of the availability of alternative products/services

In case there are many (potential) suppliers, this means that...?

• you should regularly change the suppliers

• most probably the suppliers are not powerful

• most probably the suppliers are powerful

• you should never change the suppliers

9) In general, industries are more attractive when the ________.

• A) majority of the threats are high

• B) majority of the threats are low

• C) threat of each of the forces is neutral-neither low nor high

• D) threat of each of the five forces is high

• E) threat of each of the five forces is low

10) Generally, industries are more attractive when the threat of substitutes is ________.

• A) high

• B) low

• C) neutral (neither high or low)

• D) high for manufacturing firms and low for service firms

• E) high for service firms and low for manufacturing firms

12) Which of Porter's five forces is most closely associated with the concept "barrier to entry"?

• A) Bargaining Power of Suppliers

• B) Rivalry Among Existing Firms

• C) Threat of New Entrants

• D) Bargaining Power of Buyers

• E) Threat of Substitutes

13) Which of Porter's five forces is most directly influenced by the number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs?

• A) Threat of New Entrants

• B) Rivalry Among Existing Firms

• C) Threat of Substitutes

• D) Bargaining Power of Buyers

• E) Bargaining Power of Suppliers

Porter's five forces model assesses industry attractiveness by surveying these five factors ________.

• potential entrants, suppliers, buyers, substitutes, and rivalry among existing firms

• potential entrants, suppliers, buyers, similar products, and rivalry among existing firms

• potential entrants, suppliers, raw materials, substitutes, and rivalry among existing firms

• potential entrants, competitors, buyers, substitutes, and rivalry among existing firms

14) Supplier concentration, switching costs, attractiveness of substitutes, and threat of forward integration are factors that have a direct impact on ________.

• A) threat of new entrants

• B) bargaining power of buyers

• C) rivalry among existing firms

• D) threat of substitutes

• E) bargaining power of suppliers

3) Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n) ________ analysis.

• A) business

• B) industry

• C) competitor

• D) strategic

• E) market