Porter's Generic Strategies and 5 Forces- Brooke *done*

Question 1

Threat of entrants depends on

Answer 1

Barriers to entry.
Examples:
Capital requirements, economies of scale, customer/brand loyalty, access to distribution channels or inputs, intellectual property rights, cost advantage/disadvantage, government policy

Question 2

Purpose of Porter’s Five Forces

Answer 2

To methodically assess the external competitive threats that will impact the profitability of a particular industry or market

Question 3

Strength of rivalry

Answer 3

A major determinant of the competitiveness of an industry. Firms use pricing, innovation, marketing, etc to compete

Question 4

Bargaining power of buyers

Answer 4

High when customers are few and large or buy in large volume, or when products being purchased are undifferentiated, making it easy to switch, or when individual customers representing a large portion of the sellers’ total revenue.

Question 5

The cost of switching input materials or suppliers is high. Bargaining power of suppliers is…

Answer 5

High

Question 6

Exit barriers, similar products, low switching costs, number of similar size competitors, rate of industry growth/decline, and intermittent industry overcapacity are examples of…

Answer 6

Strength of rivalry

Question 7

A small number of supplier dominate, and few or no good substitute input materials or suppliers are available. This related to high…

Answer 7

Bargaining power of suppliers

Question 8

The relative price of substitutes is low or declining, customers’ switching cost is low, and lack of product differentiation. This means _______ is high?

Answer 8

Threat of substitute products or services

Question 9

Low cost provider strategy

Answer 9

Goal to provide a product or service at a price lower than that of competitors while appealing to a broad range of customers

Question 10

Broad differentiation strategy

Answer 10

Differentiate from competitor in ways that will appeal to a broad range of buyers

Question 11

Best-cost provider strategy

Answer 11

Goal to give customers more value for their money by emphasizing a low-cost product of service and an upscale differentiation

Question 12

Focused or market niche strategy based on lower cost

Answer 12

Offer a low cost product to a select group of customers

Question 13

Focused or market niche strategy based differentiation

Answer 13

Offer a niche product customized to the tastes of a narrow market segment