A) charge lower prices
B) charge higher prices
C) use MIS to find and create alternative products
D) companies cannot impact supplier power
290) If a supplier has high power, what can it do to influence its industry?
A) charge higher prices
B) shift costs to industry participants
C) limit quality or services
D) All of the answers are correct.
291) How can a company reduce the threat of substitute products or services?
A) market the product to fewer than 10 customers
B) ignore competitive forces
C) offer additional value through wider product distribution
D) offer less value making the product far more generic and similar to the competition
292) Which one of Porter’s five forces is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market?
A) threat of new entrants
B) threat of substitute products or services
C) threat of buyer power
D) supply chain competition
293) John Cleaver is the CEO of Tech World, a retail store that sells computers, monitors, cameras, televisions, and many other electronic products. John and his executive team are meeting to brainstorm new ideas on how to grow the business. One idea is to mimic a competitor product that is attempting to sell a new product in a different industry. After performing a Porter’s Five Forces Model analysis, John determines that all of the forces are high in this new industry. What should John do?
A) explode into the market with an overflow of the product
B) contemplate other products to introduce at the same time in this new market
C) compare the competitor’s prices and offer his product at a lower price in this new market
D) not introduce the product because all five forces are strong and this would be a highly risky business strategy
294) What is a feature of a product or service that customers have come to expect and entering competitors must offer the same if they want to survive?
A) significant barrier
B) entry barrier
C) product differentiation
D) entry chain
295) Which of the following represents a typical supply chain?
A) company – customers – suppliers
B) company – suppliers – customers
C) suppliers – company – customers
D) suppliers – customers – company
296) Imagine you are creating a new product to sell in an up-and-coming market. Which of the following statements indicates that it would be easy for you as the new entrant to compete in this market?