Describe Porter's Five Forces Model and explain each of the five forces.
What will be an ideal response?
Porter's Five Forces Model analyzes the competitive forces within the environment in which a company operates, to assess the potential for profitability in an industry. Buyer power is the ability of buyers to affect the price they must pay for an item. Supplier power is the suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services). Threat of substitute products or services is high when there are many alternatives to a product or service and low when there are few alternatives from which to choose. Threat of new entrants is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market. Rivalry among existing competitors is high when competition is fierce in a market and low when competition is more complacent.
You might also like to view...
All 'Essentials' stores stock Comfort, a private-label brand. Comfort provides relaxed, fashionable, and ready-to-wear clothing that is more economical than similar clothing in other department stores. Essentials is looking at a market in which consumers are looking for similar advantages such as cost and comfort. Therefore, Essentials can use ________ as the scheme to segment its market.
A. benefit segmentation B. geographic segmentation C. composite segmentation D. demographic segmentation E. geodemographic segmentation
The market leader normally gains the most when ________
A) its total market diminishes B) it achieves expanded market share C) its personal communication channels expand D) the niche marketing efforts by other firms expand E) the major global competitors enter the market
Other than national heritage, what factor was of primary consideration when Caucasian males hired other Caucasian males prior to 1964?
a. income level b. religious group c. experience d. geography
Which of the following partners of a limited partnership invest capital but do not participate in management?
A) specific partners B) limited partners C) general partners D) sole proprietors