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WorksheetsPorter's Five Forces Analysis
Total questions: 10
Worksheet time: 6mins
It is the first of Porter's Five Forces that consider how many rivals you have, who they are, and how the quality of their product compares with yours.
Competitive
Rivalry
Perfect Competition
Threat of New Entrants
Direct Competition
He Created the Five Forces Model?
Brian Porter
Harry Porter
Michael Porter
Mike Porter
The higher these barriers to entry, the smaller the threat for existing players.
True
False
This measures how likely it is that your customers will find an alternative to using your goods or services. It might be better quality for the price—or cheaper.
Threat of New Entrants
Buyer Power
Threat of Substitution
Supplier Power
If there's a strong downward pressure on prices then
Buyer Power is Weak
Buyer Power is Strong
Supplier Power is Weak
Supplier Power is Strong
Suppliers' relative bargaining power is high when:
Suppliers offer goods that are different from each other.
Incumbent firms face low supplier switching costs.
Incumbent firms can credibly threaten to backward integrate into the
industry.
Suppliers rely heavily on the industry for a significant portion of their revenue.
Which of the following forces is not part of Porter's Five Forces Analysis?
Optimization of Shareholder Wealth
Bargaining power of buyers
Competitive Rivalry
Threat of New Entrants
What is most likely to happen if an industry has a large number of new businesses?
Industry profits will increase
Barriers to entry will rise
Industry capacity will fall
Competitive rivalry will intensify
Porter's five forces that shape strategy are: threat of new entrants, bargaining power of buyers, bargaining power of suppliers, competitive rivalry, and threat of substitution
True
False
Porter's (a) Forces Analysis
