Porter's Five Forces

In Porter's Five Forces, the 'threat of new entrants' relates to:

• Barriers to entry

• Substitutes

• Switching costs

• Buyer power

A substitute product or service is:

• A competitor's product or service

• An alternative way of meeting the same need

• A new entrant into the industry

• A less attractive way of meeting the same need

Potential entry of new competitors increases when

• the market has significant economies of scale.

• low initial capital investment is required.

• there are strong government regulations.

• brand names are well-known.

Which of these might be considered a substitute for digital cameras?

• Social media apps

• Online news channels

• Digital televisions

• Smartphones

Which of the following is not an element of Porter’s 5 Forces Model?

• The firm’s macroeconomic environment.

• The firm’s existing competition.

• The bargaining power of suppliers.

• The potential competition from new entrants.

In Porter’s five forces model, conditions are more favourable for firms within an industry if:

• Buyer power is high

• Supplier power is high

• Entry threat is low

• Substitute threat is high

From the list below, identify which factor does not form one of the six key areas of a PESTEL analysis.

• Technological changes

• Ecological changes

• Education changes

• Political changes

What are the six elements of PESTLE?

• Peace, Elements, Search, Tape, Legal, and Environment

• Power, Environment, Science, Teaching, Legal, and Education

• Paper, Element, Savings, Trust, Labels, and Entry

• Political, Economic, Social, Technological, Legal, and Environmental

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

PESTLE is an analytical tool which helps to undertake:

• An internal analysis

• An external analysis

• A competitor analysis.

• A strategic analysis