Question

Michael Helms is the CEO of Dunder Mountain, which is a retail store that sells camping, hunting, and sporting gear. Michael and his executive team are meeting to brainstorm new ideas on how to grow the business. One idea is to mimic a competitor's product that is attempting to sell a new product in a different industry. After performing a Porter's Five Forces analysis, Michael determines that all of the forces are high in this new industry. What should Michael do?

Answer 1

D. Not introduce the product because all five forces are strong and this would be a highly risky business strategy.

Step-by-step explanation:

It is not a good idea for the company to introduce the product. The product is a mimic of a competitor's product and ''After performing a Porter's Five Forces analysis, Michael determines that all of the forces are high in this new industry. '' is showing us that since the forces are that high in this new industry it won't be good.

If he introduces the product, they can experience fewer customers or their product can be presented in a bad way.