Topic 3 Media MCQ Quiz

1. Is the threat of substitutes greater in the airline industry or the soft drink industry?
a. the soft drink industry because all carbonated beverages are the same
b. the airline industry because we have so many alternate means of transportation
c. the soft drink industry because people can choose other beverages, such as
water, tea, or coffee
d. the airline industry because people value their time
e. the soft drink industry because customers would incur high costs in switching

2. Industry competitive forces are not permanent, changing as firms evolve to

compete more effectively. Hence, which of the following factors DO NOT explain
the reason for the decline of the soft drink industry(choose all answers that
pertain)?
a. prices of soft drinks have increased substantially
b. the customer base has expanded, but the beverage selections has not
c. zero and low calorie drinks have become increasingly popular
d. increased health concerns have led consumers to substitute healthier products
e. the number of new entrants into the soft drink marker has confused consumers

3. The importance of Porter's Five Forces varies by industry. Which of the following
elements would lead to positive profitability?
a. suppliers working together to maintain prices
b. threat of entry and threat of substitutes
c. threat of substitutes and power of buyers
d. a strong leadership team and power of suppliers
e. power of suppliers and power of buyer