According to Michael Porter, There Are Five Determinants of Competition

question 11

Multiple Choice

According to Michael Porter, there are five determinants of competition. An example of _____ is the threat new competitors pose to existing competitors in an industry.

• A) threat of entry
• B) rivalry between existing competitors
• C) pressure from substitute products
• D) bargaining power of buyers
• E) bargaining power of suppliers

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Definitions:

Best Response

A strategy that produces the most favorable outcome for a player, given other players' strategies in a game.

Pricing High

A strategy where goods or services are sold at a higher price point to signal quality, maximize profit margins, or cover higher production costs.

Ice Cream Trucks

Mobile trucks that sell ice cream and sometimes other frozen treats, often heard before seen due to their distinctive music.

Nash Equilibrium

Nash Equilibrium is a concept within game theory where no participant can gain by unilaterally changing their strategy if the strategies of the others remain unchanged.