Question

question 5 (2 points)
industries that are characterized by permanent, ongoing, intense competition brought about by advancing technology or changing customer tastes, fads, and fashions are an example of
global competition.
differentiated competition.
focused competition.
hypercompetition.
question 6 (2 points)
hachiro has just completed a study for his company, allelectronics, incorporated, which produces wireless earbuds. this study focuses on the major threats to allelectronics. hachiros company uses a specific type of metal that only a few suppliers offer. however, allelectronicss earbuds would still be affordable for many customers. furthermore, hachiro does not see any products that can be used in place of allelectronics earbuds. based on what you know about michael porters five forces model, what is the greatest threat to allelectronics?
the low prices of earbuds as a result of fierce competition
the high price of the metal used to make the earbuds
the ease with which his company could enter the earbud market
customers bargaining to drive down the prices of earbuds

Explanation:

For question 5:

• Hypercompetition is characterized by intense, ongoing competition due to factors like technological advancements and changing consumer preferences. Global competition focuses on international scope, differentiated competition on product uniqueness, and focused competition on a niche.

For question 6:

• Using Michael Porter's five - forces model, when a company depends on a specific input (metal) with few suppliers, the bargaining power of suppliers is high. Since the product (earbuds) is still affordable for many customers (low threat of buyer bargaining), and there are no substitutes (low threat of substitute products), the high price of the metal (due to few suppliers) is a major threat. Low prices from competition would be a threat if it led to losses, but the affordability is mentioned. Ease of entering the market is a factor for new entrants (not relevant here as the company is already in the market).

Answer:

Question 5: hypercompetition.
Question 6: the high price of the metal used to make the earbuds.