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Questions and Answers
What does the bargaining power of buyers measure?
What does the bargaining power of buyers measure?
- Influence of customers over pricing, terms, and quality (correct)
- Influence of suppliers over pricing and quality
- Availability of comparable alternatives
- Level of competition amongst existing businesses
What is the main factor that can limit a company's pricing power?
What is the main factor that can limit a company's pricing power?
- Rate of innovation
- Diverse pricing strategies
- High threat of substitutes (correct)
- Number of competitors
Which factors contribute to the intensity of competitive rivalry in an industry?
Which factors contribute to the intensity of competitive rivalry in an industry?
- Threat of new entrants, threat of substitutes, relationships with suppliers (correct)
- Pricing power, customer base, demand
- Pricing strategies, rate of innovation, diversity of competitors
- Bargaining power of buyers, availability of alternatives, switching costs
What is the purpose of assessing the level of competitive rivalry among businesses within an industry?
What is the purpose of assessing the level of competitive rivalry among businesses within an industry?
How do high substitution threats impact a company's pricing power?
How do high substitution threats impact a company's pricing power?
What is the role of substitutes in an industry?
What is the role of substitutes in an industry?
Which factor heavily influences the threat of substitutes in a market?
Which factor heavily influences the threat of substitutes in a market?
Why can high substitution threats limit a company's pricing power?
Why can high substitution threats limit a company's pricing power?
What do substitutes in an industry refer to?
What do substitutes in an industry refer to?
What is the importance of assessing competitive rivalry within an industry?
What is the importance of assessing competitive rivalry within an industry?
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