Porter’s Five Forces Model 30 March 2023 1 Min Read Last Update: 11 April 2023 Quiz Time Welcome to Porter’s Five Forces Model Quiz You can practice as many times as you want until you get all the answers 100% right. Let's get Started How can businesses reduce the threat of substitutes in the South African retail industry? Offer incentives to customers to choose their products over substitutes Increase the quality of products to reduce the appeal of substitutes Invest in research and development to create differentiated products Increase product differentiation to reduce competition What is Porter’s Five Forces Model? A strategic management tool used to analyze competitive forces in an industry A mathematical equation used to calculate market demand and the forces in the company A financial tool used to evaluate a company’s financial health A marketing tool used to create brand awareness How can businesses increase product differentiation to reduce competition in the South African fast food industry? Invest in research and development to offer unique products Increase the number and size of competitors in the industry Develop exclusive partnerships to offer unique products Offer lower prices to increase market share Which of the following is NOT one of the five forces analyzed by Porter’s Five Forces Model? Threat of New Entrants Bargaining Power of Suppliers Bargaining Power of Buyers Marketing strategies of competitors In the South African banking industry, why is it difficult for new entrants to enter the market? The industry is dominated by a few large players with significant economies of scale There are no available distribution channels The industry is highly regulated, making it difficult for new entrants to meet compliance requirements The cost of setting up a new bank is too high Which of the following is a way businesses could respond to the Bargaining Power of Buyers in the South African telecommunications industry? Increase barriers to entry by securing patents or licenses Diversify suppliers to reduce dependency on any one supplier Build brand loyalty to reduce switching by customers Invest in vertical integration to reduce reliance on suppliers Why do suppliers of key resources have significant bargaining power over mining companies in South Africa? Because there are many suppliers of these resources, which increases competition among them Because these resources are not critical to the operations of mining firms Because there are few suppliers of these resources, and the resources they provide are critical to the operations of mining firms Because mining companies have significant bargaining power over their suppliers 1 out of 7 Time is Up! Time's up Like what you read? Subscribe to our Newsletter Submit Subscribe to our email newsletter to get the latest posts delivered right to your email.