Business Driven Information Systems 8th Edition by Paige Baltzan test bank

473)       In a SWOT analysis, potential external threats are harmful when they identify all threats or risks detrimental to your organization, including new market entrants, substitute products, employee turnover, differentiating products, shrinking markets, adverse changes in regulations, economic shifts, and so on.

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474)       Competitive advantages provide the same product or service either at a lower price or with additional value that can fetch premium prices.

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475)       Mark Peterson identified Porter’s Five Forces Model, which analyzes the competitive forces within a business environment.

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476)       Porter’s Five Forces Model outlines the process for a sales strategy.

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477)       With the Five Forces Model, companies should watch the forces in the market. If the forces are strong, competition generally increases, and if the forces are weak, competition typically decreases.

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478)       There are many challenges to changing doctors, including transferring medical records and losing the doctor-patient relationship along with the doctor’s knowledge of the patient’s history. Changing doctors provides a great example of switching costs.

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479)       Supplier power is one of Porter’s five forces, and it measures the suppliers’ ability to influence the prices they charge for supplies (including materials, labor, and services).

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480)       Polaroid had a unique competitive advantage for many years until it forgot to observe competitive intelligence. The firm went bankrupt when people began taking digital pictures. Polaroid provides a great example of Porter’s supplier power.

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481)       Product differentiation occurs when a company develops unique differences in its products or services with the intent to influence demand.

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482)       Buyer power is the ability of buyers to affect the price they must pay for an item.

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483)       Rivalry among existing competitors refers to the ability of buyers to affect the price they must pay for an item.

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       ⊚   false