For the love of god - Please explain to me as to why the answer to question 14 (Porter) [Schwerser-page-113] is B. Rest did a 13/15 on that one, which is good enough for porter brain-teasers.
What is the gist of the question - is it too long to type?
Unfortunately it’s a 2 page (messy) vignette. Anyway’s gnite.
swaptiongamma Wrote: ------------------------------------------------------- > Unfortunately it’s a 2 page (messy) vignette. > Anyway’s gnite. haha ok
It will not increase barriers to entry - because unless other competitors decide to redesign - they do not need to make the new line switch.
- Bergleaf Offices is increasing it’s capital expenditure, which is already in a very capital intensive industry. Does’nt that increase the barriers to entry for a rookie? 2. Since Bergleaf is moving towards a more niche differentiated industry by manufacturing light weight furniture - how does it, at all, increase the rivalry amongst the existing customers? 3. Since Bergleaf is going to differentiate it’s product, which leaves (addicted) buyers no choice but to buy the lightweight-furniture, how does it, at, all increase the buying power of the customers? Question asks what is least likely to happen after the pick that line of business: It is ‘least likely’ that the buying power is going to increase - ANS C & It is ‘least likely’ that the rivalry amongst the existing customers is going to increase - AND A No where close to ans B, I came, and finally called it a day. B was the 1st option that I eliminated after looking at the question and spent next 10 minutes to decide on A & C, to my dismay, just to find out that B was the answer.
kinda what I did at the first shot myself. Porter always has a lot of “if-and-buts-and-in-betweens” in my opinion. No clear cut answers there.