Other Software Companies Could Not Compete with Microsoft Based on the Hesitation

question 39

Multiple Choice

Other software companies could not compete with Microsoft based on the hesitation of consumers to try a new software. Which of Porter's forces does this reflect?

• A) exit barriers
• B) bargaining power of buyers
• C) threat of substitutes
• D) bargaining power of suppliers
• E) rivalry among existing firms

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Definitions:

Consuming Services

Consuming services refers to the use of services provided by businesses or individuals which are utilized and exhausted during the process, such as electricity, consulting, or maintenance services.

Generating Revenues

The process of bringing in income from business activities, sales, or services offered.

Drawing Account

An account used to track withdrawals made by the owner from the business for personal use.

Normal Balance

The side of an account (debit or credit) where increases to the account are recorded, depending on the account's nature.