In the IO perspective it is important to enter an industry with
A)Low supplier power
B)Low threat from substitutes
C)Low levels of rivalry between firms
D)All of the above

Question

In the IO perspective it is important to enter an industry with​
A)​Low supplier power
B)Low threat from substitutes
C)Low levels of rivalry between firms
D)​All of the above

Quizplus · Accepted Answer

It is important to enter an industry with low supplier power, low threat from substitutes, and low levels of rivalry between firms because these factors can affect a firm's ability to compete and be profitable in the industry. Low supplier power means that the firm can negotiate better prices for inputs, low threat from substitutes means that the firm's products are unique and not easily replaced by other products, and low levels of rivalry between firms means that there is less competition for customers and market share. All of these factors can contribute to a firm's success in the industry.

In the IO Perspective It Is Important to Enter an Industry