What impact will patents have on a business with respect to Porter's five forces?
A) Patents will result in increased market competition.
B) Patents will result in increased rivalry within an industry.
C) Patents will result in reduced threat of new entrants.
D) Patents will result in increased bargaining power of buyers.

Question

Quizplus · Accepted Answer

Patents provide legal protection for inventions and innovations, which make it difficult for new competitors to enter the market. This reduces the threat of new entrants to the industry, which is one of the five forces in Porter's model.

Answer: B
 Patents can also create barriers to entry and limit the availability of resources and technologies for new companies. This results in increased rivalry among existing players in the industry, which is another one of the five forces in Porter's model.

Therefore, the best choices are C and B.

What Impact Will Patents Have on a Business with Respect