37. The Internet heightens the threat of substitutes because it creates new ways to accomplish the same task. TRUE Along with traditional marketplaces, the Internet has created a new marketplace and channel. In general, the threat of substitutes is heightened, because the Internet introduces new ways to accomplish the same tasks. AACSB: Analytic Blooms: Understand Learning Objective: 02-06 How the Internet and digitally based capabilities are affecting the five competitive forces and industry profitability. Level of Difficulty: 2 Medium Topic: The Competitive Environment 38. Five-Forces analysis implicitly assumes a zero-sum game, a perspective that can be (p. 66) TRUE Five-forces analysis implicitly assumes a zero-sum game, determining how a firm can enhance its position relative to the forces. Yet such an approach can often be It can overlook the many potential benefits of developing constructive win-win relationships with suppliers and customers. AACSB: Analytic Blooms: Understand Learning Objective: 02-06 How the Internet and digitally based capabilities are affecting the five competitive forces and industry profitability. Level of Difficulty: 2 Medium Topic: The Competitive Environment 39. Michael Porter's Five-Forces Analysis is a dynamic tool for analyzing industry attractiveness. FALSE The five-forces analysis also has been criticized for being essentially a static analysis. External forces as well as strategies of individual firms are continually changing the structure of all industries. AACSB: Analytic Blooms: Remember Learning Objective: 02-06 How the Internet and digitally based capabilities are affecting the five competitive forces and industry profitability. Level of Difficulty: 1 Easy Topic: The Competitive Environment
37. The Internet heightens the threat of substitutes because it creates new ways to accomplish the same task. TRUE Along with traditional marketplaces, the Internet has created a new marketplace and channel. In general, the threat of substitutes is heightened, because the Internet introduces new ways to accomplish the same tasks. AACSB: Analytic Blooms: Understand Learning Objective: 02-06 How the Internet and digitally based capabilities are affecting the five competitive forces and industry profitability. Level of Difficulty: 2 Medium Topic: The Competitive Environment 38. (p. 66) Five-Forces analysis implicitly assumes a zero-sum game, a perspective that can be TRUE Five-forces analysis implicitly assumes a zero-sum game, determining how a firm can enhance its position relative to the forces. Yet such an approach can often be It can overlook the many potential benefits of developing constructive win-win relationships with suppliers and customers. AACSB: Analytic Blooms: Understand Learning Objective: 02-06 How the Internet and digitally based capabilities are affecting the five competitive forces and industry profitability. Level of Difficulty: 2 Medium Topic: The Competitive Environment 39. Michael Porter's Five-Forces Analysis is a dynamic tool for analyzing industry attractiveness. FALSE The five-forces analysis also has been criticized for being essentially a static analysis. External forces as well as strategies of individual firms are continually changing the structure of all industries. AACSB: Analytic Blooms: Remember Learning Objective: 02-06 How the Internet and digitally based capabilities are affecting the five competitive forces and industry profitability. Level of Difficulty: 1 Easy Topic: The Competitive Environment
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