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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?

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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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Man
1 months ago
Ha! Alternative vacuum cleaner? What, is it like a Roomba but also does the dishes? I'd be careful with that one, it might just suck up your entire kitchen!
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Argelia
3 days ago
Haha, that would be something! But yeah, it sounds like a potential threat of substitutes.
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Willodean
2 months ago
I'm not sure about that. Doesn't the question mention that the competitor's vacuum cleaner is 'alternative'? Doesn't that mean it might not serve the same purpose? I'd go with C - No, it does not serve the same purpose.
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Leonora
10 days ago
C) No, it does not serve the same purpose
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Dorthy
15 days ago
B) Yes, there are no barriers to entry; it is an oligopoly
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Leota
20 days ago
A) Yes, customers may switch to alternative products
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Hailey
2 months ago
I agree with Phuong. This is a classic case of the threat of substitutes, where a competitor's product can potentially replace the one produced by the organization.
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Jamal
5 days ago
A) Yes, customers may switch to alternative products
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Luisa
9 days ago
B) Yes, there are no barriers to entry; it is an oligopoly
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Elli
1 months ago
A) Yes, customers may switch to alternative products
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Phuong
2 months 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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Artie
1 months ago
That's right, the threat of substitutes can definitely impact a company's market share
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Melina
1 months ago
Yes, customers may switch to alternative products
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Jaclyn
2 months ago
A) Yes, customers may switch to alternative products because they offer similar benefits
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Franchesca
2 months ago
C) No, it does not serve the same purpose
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Kanisha
2 months ago
A) Yes, customers may switch to alternative products
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