5 Forces & KSF test

When allocating a KFU, one should take the position of:

• competitor

• supplier

• customer

• the company itself

Assessing barriers to entry is the basis for analyzing the following factor within Porter's 5 forces:

• Threat of existing competitors

• Buyer power

• Supplier power

• Threat of new entrants

In which case is the industry more attractive for operation:

• There are a small number of suppliers in the market

• There are a large number of small buyers with low price sensitivity in the market

• Buyers tend to choose substitutes when prices change

• Barriers to entry into the market are minimal, new players plan to enter the industry

What is the determinant of high bargaining power of suppliers?

• The major share of suppliers' profits depends on the market under consideration

• There is a pronounced shortage of the supplied product in the market

• Switching costs between competitors or substitute products are minimal or absent

• Suppliers may threaten backward vertical integration

According to M. Porter's 5 Forces Model, buyers' bargaining power increases in a situation where

• The buyer incurs significant switching costs

• The buyer does not have complete information about demand and actual market prices

• The products purchased in the industry are standard or undifferentiated

• No correct answer

The results of M. Porter's 5 forces analysis are generally applicable:

• For most organizations whose characteristics that are significant from the point of view of the analysis are comparable to those of the organization for which the analysis is being conducted

• For most organizations whose product range is comparable to the product range of the organization for which the analysis is being conducted

• For any organization within the industry under consideration

• Only for the organization for which the analysis is being conducted

Which of the following entry barriers can reduce the threat of new competitors entering the market?

• Low initial investment

• Consumer loyalty to existing brands on the market

• Availability of distribution channels

• Need to obtain a license

The situation is characterized by the following indicators: there is one large monopolist in the market of essential goods, barriers to entry are significant, and the number of consumers is large. It is difficult to replace the goods without costs with similar ones for consumers. Select the correct statements:

• Consumers have low bargaining power

• High threat from new competitors

• Existing competitors have high bargaining power

• High threat from substitute products

Colgate-Palmolive is one of the world's leading manufacturers of toothpaste under various brands. What should be considered as a substitute product, substantiate the answer, explaining the logic of reasoning.

SmoRodina is a young brand of natural cosmetics from Magnitogorsk, which has been actively developing since 2017. For their products, the founders of SmoRodina set a high bar when developing their products, carefully selecting ingredients, thinking through the recipe and creating a stylish design. All components of the brand - from active oils to preservatives - are completely organic, most of them are certified by ECOCERT and BIO certification, purchased in Europe. The composition uses 96-100% natural ingredients, 4% synthetic, permitted in the food industry. List at least 3 key success factors for the company.