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Flashcards in ch3 Deck (10):
1

The bargaining power of new entrants is one of the competitive forces identified by Porter.

F

2

Ford Automobiles’ contract with Goodyear for tires is a strong example of the bargaining power of customers

T

3

Beth goes into restaurant and asks for a soda. They offer to serve her another brand instead. This is an example of the threat of substitutions.

F

4

A pharmaceutical company that marketed a drug for a rare disease would be an example of a company that was providing product differentiation within an industry.

T

5

Inbound and outbound logistics are examples of support activities in Porter's Value Chain.

F

6

Accounting functions like accounts receivables would be an example of supporting activities in Porter’s value chain model.

T

7

A manufacturing process transforms finished goods into cash.

F

8

A key competitive advantage is increasing margins by streamlining processes

T

9

Monty has decided to rent out only luxury cars, which is a differentiation strategy

T

10

Intel and Dell established an alliance to gain a competitive advantage

T