3.7.7 Competitive environment

What are the five forces in Porter's Five Forces model?

• Barriers to Entry, Buyer Power, Supplier Power, Threat of Substitutes, Rivalry within the industry

• Barriers to Entry, Buyer Power, Supplier Power, Threat of New Entrants, Market Growth

• Barriers to Entry, Buyer Power, Supplier Power, Threat of Substitutes, Market Decline

• Barriers to Entry, Buyer Power, Supplier Power, Threat of New Entrants, Market Decline

Which strategy can be used to reduce the threat of substitutes?

• Differentiation

• Lowering prices

• Increasing production

• Reducing quality

What is one way to raise barriers to entry according to the text?

• Patents and trademarks

• Lowering prices

• Increasing production

• Reducing quality

What is a strategy to influence buyer power?

• Acquiring a company that buys from the supplier

• Lowering prices

• Increasing production

• Reducing quality

What is a strategy to influence supplier power?

• Using long-term contracts

• Lowering prices

• Increasing production

• Reducing quality

What is one characteristic of a market with intense rivalry?

• Many equally-sized competitors

• Few competitors

• High prices

• Low production costs

What is one way businesses can reduce the effects of rivalry?

• Differentiation

• Lowering prices

• Increasing production

• Reducing quality