Suppose You Are a Sales Representative for Advanced Micro Devices

question 73

Multiple Choice

Suppose you are a sales representative for Advanced Micro Devices (AMD) in Japan.You are trying to convince Toshiba to buy your company's superfast Opteron microprocessor for its new laptop computer.Toshiba's representative seems interested,but finally does not place an order.Confidentially,the representative tells you that he is afraid that Intel will withhold shipments of its Pentium 4 if he does business with AMD.Thinking about Intel's role in this scenario,which of the following elements of the five forces model is evident here?

• A) barriers to entry
• B) bargaining power of suppliers
• C) bargaining power of buyers
• D) threat of substitute products
• E) threat of new entrants

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Definitions:

Total Revenues

the total amount of money received by a company for goods sold or services provided during a specific time period.

Families' Budgets

Families' budgets refer to the financial plans for household income and expenditure, outlining planned earnings and spending over a specific period to manage finances effectively.

Luxury Good

A product or service that is not necessary for survival but is considered highly desirable within a culture or society, often associated with wealth or high social status.

Price Elastic

Price elastic describes how the quantity demanded of a good or service changes in response to a change in its price.