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Thinking of Michael Porter's Industry Structure Analysis (commonly referred to as Five Forces Analysis), which of the following are seen as threats (select all that apply):
Suggested Answer: A, C
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The model speaks of the threat of new entrants and the threat of substitutes. New entrants are par-ticularly attracted by high profitability in the sector. Substitutes can come about in a number of ways for example, through lower prices or because of technology.
34 comments · newest first
MI
Micaela
11 months ago
Yeah, all of these can be threats in different contexts!
WI
Willis
11 months ago
Wait, are suppliers really a threat? I thought they just provide resources.
JU
Juliana
12 months ago
Buyers can be a threat, but not as much as suppliers.
MA
Margart
12 months ago
I think new entrants can be a big issue too.
CH
Christa
1 year ago
Definitely substitutes are a threat!
BA
Barbra
1 year ago
I recall a similar question where suppliers were considered a threat, but I’m not sure if they apply here. I think I need to double-check that.
AN
Antonio
1 year ago
From what I practiced, I know substitutes and new entrants are threats, but I’m not confident about buyers. I feel like they might just influence prices.
GE
Genevive
1 year ago
I think new entrants are a threat because they can increase competition, but I’m a bit confused about how suppliers fit into this.
DE
Delisa
1 year ago
I remember that substitutes are definitely a threat, but I'm not sure about buyers. Do they count as a threat too?
SO
Sommer
1 year ago
Okay, let me see. Substitutes, New Entrants, and Suppliers are definitely threats in the Five Forces model. Buyers are also a force, but I'm not sure if they're considered a threat or not. I'll make sure to review the Five Forces concept before the exam to be sure I have it down.
KA
Kattie
1 year ago
Hmm, this is a tricky one. I know the Five Forces are Substitutes, Buyers, New Entrants, Suppliers, and Rivalry among Existing Competitors. I think Substitutes, New Entrants, and Suppliers are threats, but I'm not 100% sure about Buyers. I'll have to think this through carefully.
CA
Carlton
1 year ago
I'm pretty sure that Substitutes, New entrants, and Suppliers are all considered threats in Porter's Five Forces model. Buyers are also a force, but I'm not sure if they're considered a threat per se.
FI
Filiberto
1 year ago
I remember that Substitutes, New Entrants, and Suppliers are all threats in the Five Forces analysis. Buyers are a separate force, but I can't recall if they're considered a threat or not. I'll make a note to revisit this topic in my study guide.
DA
Dana
2 years ago
What, no option for 'the ghost of Michael Porter himself'? That would be the ultimate threat, right? Anyway, A, C, and D seem like the way to go here.
JA
Jade
2 years ago
D) Suppliers
DA
Dannette
2 years ago
C) New entrants
DA
Danica
2 years ago
A) Substitutes
TE
Teresita
2 years ago
Hmm, I'd say all four options are valid threats. Suppliers, new entrants, and substitutes can really disrupt the competitive landscape. And you don't want to underestimate the power of buyers!
LO
Louvenia
2 years ago
Buyers can be a threat too, especially if they have a lot of bargaining power.
RI
Richelle
2 years ago
New entrants can shake things up for sure, competition can get fierce.
DI
Dick
2 years ago
Suppliers can definitely be a threat, they have a lot of power.
LA
Laurena
2 years ago
I believe A, C, and D are threats, but not necessarily B.
CA
Catina
2 years ago
I agree with Kris, all of them can be threats depending on the industry.
SH
Shonda
2 years ago
I agree with Rana. Buyers are a force to be reckoned with, but they're not a threat per se. Gotta watch out for those suppliers and new competitors!
LI
Linsey
2 years ago
Substitutes can also be a threat, especially if they offer a cheaper or better alternative to your product.
JA
Jaclyn
2 years ago
New entrants can shake things up too, they bring fresh competition to the market.
MA
Margo
2 years ago
I agree, suppliers can really impact a company's bottom line if they have too much control.
CH
Cherilyn
2 years ago
Buyers are definitely powerful, but I think suppliers can also pose a threat.
KR
Kris
2 years ago
I think A, B, C, and D are all threats.
RA
Rana
2 years ago
A, C, and D are definitely threats according to Porter's Five Forces. Suppliers and new entrants can really shake up an industry!
AU
Audra
2 years ago
True, all these factors play a role in determining the competitiveness of an industry.
CA
Catrice
2 years ago
Buyers can also be a threat if they have strong bargaining power and can drive prices down.
SH
Shelton
2 years ago
I agree, substitutes can also be a threat because they offer alternatives to the product or service.
RO
Ronny
2 years ago
A, C, and D are definitely threats according to Porter's Five Forces. Suppliers and new entrants can really shake up an industry!