BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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competition from rival sellers.
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competition from producers of substitute products.
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competitive pressures stemming from the bargaining power of suppliers and buyers.
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all of these.
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Detailed explanation-1: -The nature and strength of the competitive forces that prevail in an industry is generally a joint product of: 1) competition from rival sellers. 2) competition from potential new entrants. 3) competition from producers of substitute products.
Detailed explanation-2: -The five forces are competitive factors, which determine industry competition and include: suppliers, rivalry within an industry, substitute products, customers or buyers, and new entrants (see Figure 1).
Detailed explanation-3: -The strength of competitive pressures that suppliers can exert on industry members is MAINLY a function of: whether needed inputs are in short supply and whether suppliers provide differentiated input that enhances performance of the product.