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CIPS Exam L4M6 Topic 2 Question 61 Discussion

Actual exam question for CIPS's L4M6 exam
Question #: 61
Topic #: 2
[All L4M6 Questions]

You work at XYZ manufacturers and a competitor has just released a rival washing machine to the product that you make. This model is proving popular with customers. What competitive force is at play?

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Suggested Answer: B

This is a threat of a new entrant. The competitor has now entered the washing machine market and is competing directly with you. This is not a threat of substitution as it is the same product. A substitution would be if they invented a new product that washed clothes and people started buying this instead of washing machines. There are many questions in the exam on Porter's 5 Forces - see p. 39


by Broderick at Mar 21, 2025, 04:25 PM

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Dahlia
4 months ago
C'mon, people. It's obviously A - threat of substitution. Unless our washing machines can clean clothes AND do the laundry dance, we're in trouble.
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Stevie
3 months ago
B) threat of new entrant
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Miss
4 months ago
I agree, we need to step up our game to compete with the new rival washing machine.
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Joanna
4 months ago
A) threat of substitution
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Delisa
5 months ago
This is a no-brainer. It's A - threat of substitution. Who doesn't love a good spin cycle showdown?
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Annice
5 months ago
Hmm, I'd say it's D - buyer power. Customers are clearly loving that new model, and they hold all the cards now.
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Ruby
5 months ago
I see your point, Ollie. Buyer power could also be a factor in this situation.
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Melvin
5 months ago
I'm going with B - threat of new entrant. Looks like our competitor is making a bold move to challenge our market share.
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Johnson
4 months ago
D) buyer power
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Ernie
4 months ago
C) supplier power
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Lilli
4 months ago
B) threat of new entrant
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Marguerita
4 months ago
A) threat of substitution
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Ollie
5 months ago
But could it also be buyer power? If customers prefer the rival machine, they have the power to choose.
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Chantay
5 months ago
I agree with Kenny, the rival washing machine is a direct substitute for our product.
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Brynn
5 months ago
Definitely the threat of substitution. That new model is giving our washing machine a run for its money!
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Margurite
4 months ago
B) threat of new entrant
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Noble
4 months ago
I agree, that new model is really putting pressure on our sales.
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Leonor
5 months ago
A) threat of substitution
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Kenny
5 months ago
I think the competitive force at play is threat of substitution.
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