Past Semester Question #2

OCTOBER 2010

PART   A

3.       Buyer power,supplier power,threat of products or services,threat of new entrants,and rivalry      among existing competitors are all included in Porter’s Five Forces Model. 

= TRUE

4.      Switching costs are typically used to influence the threat of substitute products or service.

         =TRUE    
   

PART   B

3.                What is the acquisition and analysis of events and trends in the environment external to an    organization?

A.    Private exchange

B.    First-mover advantage

C.    Environmental scanning

D.   Loyalty program

4.      Which of the following forces is commonly reduced through the use           of a loyalty program?
               A.   Buyer power
               B.    Supplier power
               C.    Threat of new entrants
               D.   Rivalry among existing competitors

PART   C

a)    Describe three (3) Porter Generic Strategies. Support your answer with example.

1.    Cost leadership strategies.

-         Low cost producer in industry- lower price to customer.

-         Competitors with higher costs cannot afford to compete with the lower cost leader on price.

2.    Innovation strategies.

-         Unique product or services or changes in business process can cause fundamental changes in the way an industry does business.

-         For example is , ASAM JAWA EXTRA.

3.    Growth strategies.

-         To expand their business.

-         Entering new global maketting.

-         Diversifying into new areas.

-         For example is, internal and ibm in microchips.