Question

Karyn is thinking about switching where she purchases the cups for her hot beverages. Which of Porter's competitive forces

can she leverage?
Multiple Choice

Answer 1

Karyn is thinking about switching where she purchases the cups for her hot beverages. She can leverage E. rivalry among existing competitors

Step-by-step explanation:

Porter's five forces framework is basically a tool which is used to analyze the completions in business arena. These forces are used to determine the intensity of competition and therefore helps in analyzing the profit and loss for an industry.

Among the five forces is rivalry among existing competitors which will leverage in Karyn's work. Based on number of factors like existing competitors and their ability, this force helps to examine the intensity of current competition in marketplace. A common indicator of this rivalry is concentration ration of industry. For better outcome in industrial business, an organisation should be aware of its competitors strategies.

Answer 2

Karyn is leveraging bargaining power of customers while switching the purchase location

Step-by-step explanation:

The bargaining power of customers reflects how much is the switching cost for the customer to change the product. In this case, Karyn is choosing to switch the supplier, which means the switching cost is low, and Karyn can choose other suppliers easily.