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CIPS Exam L4M6 Topic 2 Question 61 Discussion

Actual exam question for CIPS's L4M6 exam
Question #: 61
Topic #: 2
[All L4M6 Questions]

You work at XYZ manufacturers and a competitor has just released a rival washing machine to the product that you make. This model is proving popular with customers. What competitive force is at play?

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Suggested Answer: B

This is a threat of a new entrant. The competitor has now entered the washing machine market and is competing directly with you. This is not a threat of substitution as it is the same product. A substitution would be if they invented a new product that washed clothes and people started buying this instead of washing machines. There are many questions in the exam on Porter's 5 Forces - see p. 39


by Broderick at Mar 21, 2025, 04:25 PM

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Ollie
9 hours ago
But could it also be buyer power? If customers prefer the rival machine, they have the power to choose.
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Chantay
9 days ago
I agree with Kenny, the rival washing machine is a direct substitute for our product.
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Brynn
10 days ago
Definitely the threat of substitution. That new model is giving our washing machine a run for its money!
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Kenny
13 days ago
I think the competitive force at play is threat of substitution.
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