CIPS Exam L4M6 Topic 3 Question 57 Discussion

Actual exam question for CIPS's L4M6 exam

Question #: 57
Topic #: 3

[All L4M6 Questions]

A competitor develops an alternative type of vacuum cleaner to one produced by your organization. Is this an example of the threat of substitutes, one of the five forces of competition described by competitive forces theory?

AYes, customers may switch to alternative products

BYes, there are no barriers to entry; it is an oligopoly

CNo, it does not serve the same purpose

DNo, it is a threat from a new entrant to the market

Show Suggested Answer

Suggested Answer: B, C

The correct answers are information sharing and trust. Further qualitative KPIs are listed on p.102. Deliveries in full and on time would be a quantitative KPI and early supplier involvement is not a KPI at all.

by Noel at Jan 12, 2025, 04:09 PM

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Phuong

12 hours ago

The correct answer is A. The development of an alternative vacuum cleaner is definitely an example of the threat of substitutes, as customers may switch to the competitor's product.

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