CIMA Exam CIMAPRA19-E02-1 Topic 1 Question 102 Discussion

Actual exam question for CIMA's CIMAPRA19-E02-1 exam

Question #: 102
Topic #: 1

A business manufacturing running trainers is considering exporting to a fast growing Asian market. Using Porter's Five Forces, which of the following statements is most likely to be incorrect?

ASupplier power is likely to be high

BCompetitive rivalry is likely to be high

CNew entrants are likely to be low

DSubstitutes are likely to be high

Show Suggested Answer

Suggested Answer: A

by Laura at Oct 19, 2024, 04:31 PM

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Jacqueline

4 months ago

Option C is the way to go, no doubt. New entrants are going to be pouring in like water in a fast-growing market. It's like trying to hold back the tide with a teacup.

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Brittni

3 months ago

A: Definitely, it's a constant challenge to stay ahead of the competition in such a dynamic environment.

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Kati

3 months ago

B: I agree, it's hard to keep new competitors out when the market is expanding rapidly.

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Herminia

3 months ago

A: I think option C is incorrect. New entrants are likely to be high in a fast-growing market.

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Gail

4 months ago

This is a tough one, but I'm going to guess that option B is the incorrect statement. Competitive rivalry is probably going to be fierce in a fast-growing Asian market.

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Nu

4 months ago

Option A seems off to me. Supplier power is likely to be high in this scenario, with the business trying to expand into a new market.

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Gladis

3 months ago

I think D is incorrect. Substitutes are usually low in a niche market like running trainers.

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Ciara

3 months ago

New entrants are usually high in a growing market, so C seems incorrect.

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Katie

3 months ago

I agree, competitive rivalry is usually high in fast-growing markets.

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Carline

4 months ago

I think A is correct. Supplier power is likely to be high when entering a new market.

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Denise

5 months ago

I'd go with option D. Substitutes in the running trainer market are probably going to be pretty low, especially in a fast-growing Asian market.

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Latrice

5 months ago

I disagree, I believe the correct answer is A) Supplier power is likely to be high.

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Lashaun

5 months ago

Hmm, I think option C is the most likely to be incorrect. New entrants in the Asian market are probably going to be pretty high, considering the growth potential.

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