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CIPS Exam L3M1 Topic 1 Question 21 Discussion

Actual exam question for CIPS's L3M1 exam

Question #: 21
Topic #: 1

[All L3M1 Questions]

Thinking of Michael Porter's Industry Structure Analysis (commonly referred to as Five Forces Analysis), which of the following are seen as threats (select all that apply):

ASubstitutes

BBuyers

CNew entrants

DSuppliers

Show Suggested Answer

Suggested Answer: A, C

The model speaks of the threat of new entrants and the threat of substitutes. New entrants are par-ticularly attracted by high profitability in the sector. Substitutes can come about in a number of ways for example, through lower prices or because of technology.

by Catarina at Sep 16, 2024, 04:40 PM

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Dana

2 months ago

What, no option for 'the ghost of Michael Porter himself'? That would be the ultimate threat, right? Anyway, A, C, and D seem like the way to go here.

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Jade

1 months ago

D) Suppliers

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Dannette

1 months ago

C) New entrants

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Danica

2 months ago

A) Substitutes

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Teresita

2 months ago

Hmm, I'd say all four options are valid threats. Suppliers, new entrants, and substitutes can really disrupt the competitive landscape. And you don't want to underestimate the power of buyers!

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Louvenia

1 months ago

Buyers can be a threat too, especially if they have a lot of bargaining power.

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Richelle

2 months ago

New entrants can shake things up for sure, competition can get fierce.

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Dick

2 months ago

Suppliers can definitely be a threat, they have a lot of power.

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Laurena

2 months ago

I believe A, C, and D are threats, but not necessarily B.

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Catina

2 months ago

I agree with Kris, all of them can be threats depending on the industry.

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Shonda

2 months ago

I agree with Rana. Buyers are a force to be reckoned with, but they're not a threat per se. Gotta watch out for those suppliers and new competitors!

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Linsey

28 days ago

Substitutes can also be a threat, especially if they offer a cheaper or better alternative to your product.

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Jaclyn

1 months ago

New entrants can shake things up too, they bring fresh competition to the market.

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Margo

1 months ago

I agree, suppliers can really impact a company's bottom line if they have too much control.

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Cherilyn

2 months ago

Buyers are definitely powerful, but I think suppliers can also pose a threat.

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Kris

3 months ago

I think A, B, C, and D are all threats.

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Rana

3 months ago

A, C, and D are definitely threats according to Porter's Five Forces. Suppliers and new entrants can really shake up an industry!

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Audra

2 months ago

True, all these factors play a role in determining the competitiveness of an industry.

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Catrice

2 months ago

Buyers can also be a threat if they have strong bargaining power and can drive prices down.

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Shelton

2 months ago

I agree, substitutes can also be a threat because they offer alternatives to the product or service.

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Ronny

2 months ago

A, C, and D are definitely threats according to Porter's Five Forces. Suppliers and new entrants can really shake up an industry!

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