CIMA Exam CIMAPRA19-E02-1 Topic 7 Question 92 Discussion

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

Question #: 92
Topic #: 7

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 Magda at Jul 11, 2024, 09:32 AM

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Walton

5 months ago

I bet the new Asian market is just filled with people who want to be the very best, like no one ever was. Option C has got to be wrong.

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Carol

5 months ago

Yeah, I don't think new entrants are likely to be low in a fast growing market. Option C is probably incorrect.

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Cordelia

5 months ago

I agree, there's probably a lot of competition. Option C doesn't seem right.

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Lina

5 months ago

I think option C is incorrect. There must be a lot of new entrants in the fast growing Asian market.

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Cory

6 months ago

I think C) New entrants are likely to be low is the incorrect statement based on Porter's Five Forces.

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Fabiola

6 months ago

Ha! Supplier power being high? That's a given in any manufacturing business. Option A is the obvious incorrect choice here.

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Miesha

4 months ago

Substitutes could be a threat in the industry.

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German

4 months ago

New entrants might actually be high in a fast growing market.

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Lonna

5 months ago

Competitive rivalry can also be intense in the market.

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Evan

5 months ago

I agree, supplier power is always high in manufacturing.

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Monroe

6 months ago

I'm not sure, but I think B) Competitive rivalry is likely to be high makes more sense.

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Chara

6 months ago

I disagree, I believe the correct answer is D) Substitutes are likely to be high.

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Venita

6 months ago

Well, I'm leaning towards option D being the incorrect statement. Substitutes in the running trainer market are probably not that high.

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Viva

4 months ago

I also believe that option D is the incorrect statement. The demand for running trainers is unique and may not have many substitutes.

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Shayne

4 months ago

C) New entrants are likely to be low

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Gail

4 months ago

B) Competitive rivalry is likely to be high

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Thersa

4 months ago

A) Supplier power is likely to be high

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Kati

4 months ago

I think option D is the odd one out here. Running trainers have a specific purpose that may not have many substitutes.

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Corazon

4 months ago

C) New entrants are likely to be low

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Stephaine

4 months ago

B) Competitive rivalry is likely to be high

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Shawnda

4 months ago

A) Supplier power is likely to be high

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Tamra

4 months ago

I agree, option D does seem unlikely. Substitutes for running trainers are not as high as other products.

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Britt

5 months ago

C) New entrants are likely to be low

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Queen

5 months ago

B) Competitive rivalry is likely to be high

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Rosalyn

5 months ago

A) Supplier power is likely to be high

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Evan

5 months ago

Yeah, I also believe that substitutes for running trainers are not high in the market.

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Chanel

5 months ago

I agree. The demand for running trainers is specific, so substitutes are likely low.

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Sarah

6 months ago

I think option D is incorrect. There aren't many substitutes for running trainers.

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Dalene

6 months ago

Hmm, I'm not sure. I'd say option B is the most likely to be incorrect. Competitive rivalry may not be as high in a new and expanding market.

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Luis

6 months ago

I agree with you, option B seems like the most likely incorrect statement. Competitive rivalry might not be high in a new market.

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Chu

6 months ago

I think option A is incorrect. Supplier power may not be high in a fast growing market.

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Florinda

7 months ago

I think option C is incorrect. New entrants in a fast-growing Asian market are likely to be high, not low.

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Marguerita

5 months ago

D: Competitive rivalry is also likely to be high with so many companies trying to capture market share.

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Ulysses

5 months ago

C: I think supplier power is likely to be high because of the demand for running trainers in Asia.

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Noah

5 months ago

B: I agree, there are usually many new companies trying to enter a fast-growing market.

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Cassandra

6 months ago

A: I think option C is incorrect. New entrants in a fast-growing Asian market are likely to be high, not low.

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Marshall

7 months ago

I think the answer is A) Supplier power is likely to be high.

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