IT 210 (SNHU) CHAPTER 2 TEST QUESTIONS WITH
CORRECT ANSWERS.
Porter's five competitive forces -- Answer ✔✔ Threat of new entrants
Power of buyers
Power of suppliers
Threat of substitutes
Rivalry among existing competitors
network effects -- Answer ✔✔ the increased value of a product or service that results
simply because there are more people using it
switching costs -- Answer ✔✔ costs that customers incur when they change suppliers
power of buyers -- Answer ✔✔ the advantage buyers have when they have leverage
over suppliers and can demand deep discounts and special services.
power of suppliers -- Answer ✔✔ the advantage sellers have when there is a lack of
competition and they can charge more for their products and services.
threat of substitutes -- Answer ✔✔ the threat posed to a company when buyers can
choose alternatives that provide the same item or service, often at attractive savings.
disruptive innovation -- Answer ✔✔ a new product or service, often springing from
technological advances., that has the potential to reshape an industry
sustaining technologies -- Answer ✔✔ technologies that offer improvements to
streamline existing processes and give companies marginal advantages.
