Michael Helms is the CEO of Dunder Mountain, which is a retail store that sells camping, hunting , and sporting gear. Michael and his executive team are meeting to brainstorm new ideas on how to grow the business. One idea is to mimic a competitor's product that is attempting to sell a new product in a different industry. After performing a Porter's Five Forces analysis, Michael determines that all of the forces are high in this new industry. What should Michael do?
A) Explode into the market with an overflow of the product.
B) Contemplate other products to introduce at the same time in this new market.
C) Compare the competitor's prices and offer his product lower in this new market.
D) Not introduce the product because all five forces are strong and this would be a highly risky business strategy.

Question

Quizplus · Accepted Answer

When all five forces in Porter's Five Forces analysis are high, it indicates a highly competitive and potentially unprofitable industry. Therefore, entering such a market would be risky and might not yield the desired returns, making it advisable to avoid introducing the product.

Michael Helms Is the CEO of Dunder Mountain, Which Is