Question

The strength or weakness of the potential entry of rivals as a competitive force is

a) Strongly correlated with the level of supplier power and with the number of suppliers that may seek to integrate forwards into the industry.

b) Contingent upon the strength of buyer loyalty to existing brands.

c) Contingent upon whether the industry's growth and profit prospects are strongly attractive to potential entry candidates.

d) Contingent upon whether the strategies of industry members are well matched to the industry's key success factors.

Answer 1

a) Strongly correlated with the level of supplier power and with the number of suppliers that may seek to integrate forwards into the industry.

The strength or weakness of potential entry of rivals as a competitive force is contingent upon whether the industry's growth and profit prospects are strongly attractive to potential entry candidates.

Step-by-step explanation:

The strength or weakness of the potential entry of rivals as a competitive force is contingent upon whether the industry's growth and profit prospects are strongly attractive to potential entry candidates. If an industry offers high growth and profit potential, it is more likely to attract new firms. On the other hand, if an industry has limited growth and profit prospects, there is a lower likelihood of new firms entering the market.

For example, in a growing industry such as technology, where there is a high demand and significant profit potential, the entry of rivals as a competitive force is more likely. In contrast, in a declining industry with low profit potential, such as traditional print media, the entry of new firms is less likely.

Therefore, the contingent factor of industry growth and profit prospects plays a significant role in determining the strength or weakness of potential entry of rivals as a competitive force.