Strategic Management - Revision

Which of the following is not a factor under Porter's Five Forces?

• Threat of New Entrants

• Threat of New Lecturer

• Bargaining Power of Buyers

• Bargaining Power of Suppliers

• Rivalry among Competitors

What is the purpose of Porter's Five Forces?

• Understand the position of your company

• Build relationships with customers and suppliers

• Investigate the attractiveness of an industry

• Evaluate the competitiveness of your company

• Earn more profit

The bargaining power of supplier increases when...

• There are a few suppliers

• The suppliers has good proximity with your company

• The suppliers are not in a good terms with your company

• The suppliers offers a good variety of products

What does it mean by bargaining power of suppliers?

• The suppliers can buy your products at a cheaper price

• The suppliers can fix the quantity of the products your purchased

• The suppliers have a say on the price of the materials they offer

• The suppliers could determine the price of your products

A substitute for a Toyota is...

• Train

• Carpooling

• Honda

• All of the above

• Bus

The threat to substitute products reduces when...

• It is the favourite brand of your mom

• There are many substitutes available

• Your product is not differentiated from other products

• It is expensive to switch to other brands

What does it mean by the Bargaining power of buyer?

• The customers will increase their purchases when your price increases

• The customers are your boss

• The customers can negotiate with your salesperson

• The customers can influence your price to become lower

The bargaining power of customers increases when...

• There is no switching cost

• Your products is very different from your competitors

• The buyers purchase in a large bulk

• There are only a few buyers

Which of the following industries has the least threat of new entrants?

• Tesla

• PlayStation

• Taylor's University

• Tenaga National Berhad (Electricity supply)

An industry with a high barrier to enter is said to have lower _________ in comparison to another industry that can be entered easily.

• Bargaining power of suppliers

• Bargaining power of customers

• Threat of new entrants

• Threat of substitute