Question

Which of the following is NOT one of the 5 typical sources of competitive pressures? Select one: a. The power and influence of industry driving forces b. The bargaining power of suppliers and seller-supplier collaboration c. The threat of new entrants into the market d. The attempts of other companies/industries to win customers over to their substitute products

Answer 1

Answer:

a. The power and influence of industry driving forces

Explanation:

As per Michael Porter, there exist five competitive forces that influence competition in an industry. The five forces as per Porter are:

• Potential entrants
• Industry competitors
• Customers
• Substitutes
• Suppliers

Potential entrants refers to the risk of new entrants in the market.

Industry competitors refers to the extent of rivalry and competition between existing firms.

Customers relate to the negotiating or bargaining power of the customers and to what extent they exercise such power.

Substitutes refer to the emergence of substitute products in the market which may drive down a firm's sales.

Suppliers relate to the bargaining power exercised by suppliers with respect to inputs.