You want to open a bank, so you know you have to offer online banking at a minimum. This is an example of the __________ in Porter's competitive forces model.
A) Bargaining power of customers
B) Bargaining power of suppliers
C) Rivalry among existing firms in the industry
D) Threat of entry of new competitors
E) Threat of substitute products or services

Question

Quizplus · Accepted Answer

The threat of entry of new competitors refers to how easy or difficult it is for new firms to enter the market and compete with existing firms. In this case, the decision to offer online banking is a response to the potential threat of new competitors who already offer this service. Therefore, this aligns with the threat of entry of new competitors in Porter's competitive forces model.

You Want to Open a Bank, So You Know You