Asked by Shaine Vanessa Manimtim on Sep 28, 2024
Verified
Competitive rivalry,the bargaining power of suppliers and customers,and the threat of substitute products and new entrants are the forces that jointly influence ________.
A) industry profitability
B) economies of scope
C) product scale effects
D) demographic trends
Industry Profitability
Industry profitability is a measure of the average income and margins businesses within a specific sector can expect to earn.
Competitive Rivalry
The ongoing, competitive struggle between companies in the same industry or market to win over customers, increase market share, and achieve dominant status.
Substitute Products
Goods or services that can be used in place of each other, offering consumers an alternative choice.
- Recognize the influence of industrial analysis elements in forming market trends.
Verified Answer
TV
Tessa Vandegriftabout 23 hours ago
Final Answer :
A
Explanation :
These three forces, along with the threat of new entrants and substitutes, collectively determine the level of competition and profitability within an industry. The stronger the competitive rivalry, bargaining power of suppliers/customers, and threat of substitutes, the lower the industry profitability is likely to be.
Learning Objectives
- Recognize the influence of industrial analysis elements in forming market trends.