Porter's Five Force Model

What is Porter's Five Forces Model?

• A framework for assessing and evaluating the competitive strength and positions of a business organization.

• A marketing strategy for increasing sales.

• A financial analysis tool.

• A customer service guideline.

Which of the following is NOT included in Porter's Five Forces framework?

• Threat of Substitute Products

• Competitive Rivalry

• Market Penetration Strategies

• Bargaining Power of Customers

Which force in Porter's Five Forces Model is concerned with the ability of customers to influence pricing and terms?

• Bargaining Power of Buyers

• Bargaining Power of Suppliers

• Threat of New Entrants

• Rivalry among Existing Competitors

Which force in Porter's Five Forces Model deals with the influence suppliers have on the production process?

• Bargaining Power of Buyers

• Bargaining Power of Suppliers

• Threat of New Entrants

• Rivalry among Existing Competitors

The threat of new entrants depends upon the height of ________ in the market.

• entry barrier

• profit margin

• market share

• customer loyalty

Powerful suppliers capture more of the value for themselves by ________ higher prices, limiting quality or services, or shifting costs to industry participants.

• charging

• avoiding

• ignoring

• reducing

Refer to the image of the two snack bags at the bottom right. These are examples of ________ products.

• substitute

• complementary

• luxury

• inferior

High rivalry limits the _______ of an industry. (Fill in the blank)

• profitability

• growth rate

• market share

• innovation

What does this image represent in the context of rivalry among existing competitors?

• It represents intense rivalry between major competitors in the same industry.

• It shows collaboration between companies to increase market share.

• It depicts the entry of new competitors into the market.

• It illustrates the impact of government regulations on the industry.

What is the main environmental benefit mentioned on the Coca-Cola and WWF billboard?

• It produces electricity

• It absorbs air pollutants

• It provides shade

• It collects rainwater