Which of the Following Fundamental Insights Was Provided by Porter's

question 109

Multiple Choice

Which of the following fundamental insights was provided by Porter's five forces framework from the completion of the Alta Velocidad Española (AVE) in 2008?

• A) A strong threat of substitutes decreases the rivalry among existing competitors.
• B) All the five forces must work together to have a meaningful impact.
• C) Any of the five forces on its own, if sufficiently strong, can extract industry profitability.
• D) Competition must be defined more narrowly to remain confined to the industry's closest competitors.

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Definitions:

E(XY)

The anticipated outcome of multiplying two stochastic variables together, showing how their variances are interconnected.

COV(X,Y)

A measure of the degree to which two variables X and Y move together, indicating the strength and direction of their linear relationship.

Marginal Probability

The probability of an occurrence of a single event without consideration of any other events.

Coefficient of Correlation

A quantitative gauge assessing the force and trajectory of a linear linkage between a pair of elements.