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CIPS L4M6 Exam - 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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Chauncey
5 months ago
Wait, are we sure it's not just a marketing gimmick?
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Lucy
5 months ago
Agree, substitution is the key here!
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Christa
6 months ago
I think it's more about buyer power, honestly.
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Leonardo
6 months ago
New entrants are always a risk, but this feels like substitution to me.
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Truman
6 months ago
Definitely the threat of substitution.
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Linette
6 months ago
I’m a bit confused, but I thought supplier power was more about how much control suppliers have over prices, not competitors.
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Amie
7 months ago
I feel like this question is similar to one we did in class about competitive forces. I think it’s definitely about buyer power.
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Ryan
7 months ago
I'm not entirely sure, but I remember something about new entrants being a concern too. Could it be that?
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Marvel
7 months ago
I think this might be the threat of substitution since a rival product is taking customers away from us.
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Phuong
7 months ago
I'm a little confused by this question. Is the competitor's model really a substitute, or could it be that they have more supplier power or buyer power? I'll have to review my notes on Porter's Five Forces to make sure I'm understanding this correctly.
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Annette
7 months ago
Okay, I think I've got it. The competitor's washing machine is a direct substitute for the product we make, so the competitive force at play is the threat of substitution. I'm confident that A is the right answer.
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Judy
8 months ago
Hmm, I'm a bit unsure here. Is it really a threat of substitution, or could it be a threat of new entrant since the competitor is new to the market? I'll have to think this through carefully.
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Paris
8 months ago
This seems like a straightforward question about Porter's Five Forces. The competitor's popular washing machine model is likely a threat of substitution, so I'll go with option A.
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Dahlia
1 year 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
1 year ago
B) threat of new entrant
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Miss
1 year ago
I agree, we need to step up our game to compete with the new rival washing machine.
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Joanna
1 year ago
A) threat of substitution
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Delisa
1 year 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
1 year 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
1 year ago
I see your point, Ollie. Buyer power could also be a factor in this situation.
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Melvin
1 year 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
1 year ago
D) buyer power
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Ernie
1 year ago
C) supplier power
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Lilli
1 year ago
B) threat of new entrant
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Marguerita
1 year ago
A) threat of substitution
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Ollie
1 year 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
1 year ago
I agree with Kenny, the rival washing machine is a direct substitute for our product.
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Brynn
1 year ago
Definitely the threat of substitution. That new model is giving our washing machine a run for its money!
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Margurite
1 year ago
B) threat of new entrant
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Noble
1 year ago
I agree, that new model is really putting pressure on our sales.
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Leonor
1 year ago
A) threat of substitution
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Kenny
1 year ago
I think the competitive force at play is threat of substitution.
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