Competitive Environment in Business Quiz

What does Porter's Five Forces model help businesses understand?

• How to advertise their products

• The competitive strength of their market position

• The best way to train their employees

• How to reduce their taxes

Which of the following is NOT one of Porter's Five Forces?

• Threat of new entrants

• Bargaining power of suppliers

• Corporate social responsibility

• Threat of substitute products or services

In a SWOT analysis, what does the "S" stand for?

• Segmentation

• Sustainability

• Strengths

• Solutions

Which aspect of SWOT analysis focuses on external factors that could harm a business?

• Strengths

• Weaknesses

• Opportunities

• Threats

What is competitive advantage?

• The ability to set higher prices than competitors

• The ability to avoid taxes

• A condition or circumstance that puts a company in a favorable or superior business position

• The ability to have more employees than competitors

Industry rivalry is influenced by:

• The number of competitors and their ability to undercut prices

• The weather

• The CEO's personal preferences

• The color of the product packaging

A high level of industry rivalry typically results in:

• Lower competition

• Higher profit margins

• Increased market share for all players

• Decreased profitability for all players

Which force in Porter's Five Forces model examines how easy it is for customers to switch from one product to another?

• Bargaining power of customers

• Threat of new entrants

• Threat of substitute products or services

• Bargaining power of suppliers

What does the "O" in SWOT analysis represent?

• Operations

• Obstacles

• Opportunities

• Offerings

Which of the following best describes a company's competitive advantage?

• Paying the highest salaries

• Having the most office locations

• Offering unique benefits that competitors do not

• Spending the most on advertising