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

Question

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

Quizplus · Accepted Answer

In the IO perspective, it is important to enter an industry with low threat from substitutes and low levels of rivalry between firms. This allows for greater possibility of profitability and success in the long term. High supplier power can lead to increased costs and dependency, which may not be ideal for a new entrant in the industry. Therefore, the best choice would be only B & C.

​In the IO Perspective It Is Important to Enter an Industry

In the IO Perspective It Is Important to Enter an Industry