Podcast
Questions and Answers
What is a key factor that leads to potential development of substitute products?
What is a key factor that leads to potential development of substitute products?
- Decrease in consumers' switching costs (correct)
- Undesirable locations
- Increase in consumer loyalty
- Increase in prices of substitutes
What can increase the bargaining power of suppliers?
What can increase the bargaining power of suppliers?
- Forward integration
- Many suppliers
- Few substitutes (correct)
- Low costs of switching raw materials
What is a barrier to entry that can be overcome by gaining economies of scale quickly?
What is a barrier to entry that can be overcome by gaining economies of scale quickly?
- Large capital requirements (correct)
- Government regulatory policies
- Strong brand preferences
- Lack of experience
What is a characteristic of a market where consumer power is higher?
What is a characteristic of a market where consumer power is higher?
What is a type of integration that can increase the bargaining power of firms?
What is a type of integration that can increase the bargaining power of firms?
What can increase the pressure of substitute products?
What can increase the pressure of substitute products?
What is a barrier to entry that can be overcome by gaining technology and specialized know-how?
What is a barrier to entry that can be overcome by gaining technology and specialized know-how?
What can reduce the intensity of competition?
What can reduce the intensity of competition?
What is a type of barrier to entry that can be created by government policies?
What is a type of barrier to entry that can be created by government policies?
What is a characteristic of a market where the bargaining power of suppliers is higher?
What is a characteristic of a market where the bargaining power of suppliers is higher?
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