Quiz on Market Forces and SWOT Analysis

What does the threat of suppliers' bargaining power analyze?

• The intensity of competition in the marketplace

• How buyers can influence price decreases

• How suppliers can influence price increases

• The ease of entering a particular industry

Which factor does NOT influence buyer power?

• Number of buyers in the market

• Importance of each buyer to the organization

• Cost to the buyer of switching suppliers

• Number of suppliers in the market

What is a key driver of competitive rivalry?

• Number of buyers in the market

• Uniqueness of supplier products

• Cost of switching from one supplier to another

• Number and capability of competitors

What does the threat of substitution refer to?

• The ability of buyers to find alternative products

• The intensity of competition among existing firms

• The ease of entering a new market

• The power of suppliers to dictate prices

What can lead to a decrease in profits in an industry?

• Strong buyer power

• High barriers to entry

• Low supplier power

• Increased competition from new entrants

What does SWOT analysis evaluate?

• Strengths, weaknesses, opportunities, and threats

• Suppliers, workers, operations, and trends

• Sales, wages, output, and turnover

• Strategies, weaknesses, options, and tactics

Which of the following is NOT a source of market opportunities?

• Supplying an existing product in a new way

• Offering something in short supply

• Increasing supplier power

• Asking customers to chart their steps

What is a potential outcome of intense competitive rivalry?

• Reduced product quality

• Lower buyer power

• Higher supplier prices

• Increased advertising costs

What can happen when buyers can easily switch to substitute products?

• Higher barriers to entry

• Threat to market leaders

• Decreased buyer power

• Increased supplier power

What is a characteristic of a profitable industry with low barriers to entry?

• High competition

• Low supplier power

• Stable prices

• Limited buyer options