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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):

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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
22 days 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
4 days ago
D) Suppliers
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Dannette
12 days ago
C) New entrants
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Danica
15 days ago
A) Substitutes
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Teresita
1 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
13 days ago
Buyers can be a threat too, especially if they have a lot of bargaining power.
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Richelle
21 days ago
New entrants can shake things up for sure, competition can get fierce.
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Dick
23 days ago
Suppliers can definitely be a threat, they have a lot of power.
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Laurena
1 months ago
I believe A, C, and D are threats, but not necessarily B.
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Catina
1 months ago
I agree with Kris, all of them can be threats depending on the industry.
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Shonda
1 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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Margo
3 days ago
I agree, suppliers can really impact a company's bottom line if they have too much control.
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Cherilyn
20 days ago
Buyers are definitely powerful, but I think suppliers can also pose a threat.
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Kris
2 months ago
I think A, B, C, and D are all threats.
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Rana
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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Audra
20 days ago
True, all these factors play a role in determining the competitiveness of an industry.
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Catrice
24 days ago
Buyers can also be a threat if they have strong bargaining power and can drive prices down.
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Shelton
1 months ago
I agree, substitutes can also be a threat because they offer alternatives to the product or service.
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Ronny
1 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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