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Contesso Contesso
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6 years ago
Suppose you are a sales representative for Advanced Micro Devices (AMD) in Japan. You are trying to convince Toshiba to buy your company's superfast Opteron microprocessor for its new laptop computer. Toshiba's representative seems interested, but finally does not place an order. Confidentially, the representative tells you that he is afraid that Intel will withhold shipments of its Pentium 4 if he does business with AMD. Thinking about Intel's role in this scenario, which of the following element of the five forces model is evident here?
A) barriers to entry
B) bargaining power of suppliers
C) bargaining power of buyers
D) threat of substitute products
E) threat of new entrants
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Global Marketing

Global Marketing


Edition: 7th
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ko-evolveko-evolve
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A: The five forces model is a framework that helps analyze the competitive dynamics within an industry. One of the forces in this model is the "barriers to entry," which refers to factors that make it difficult for new competitors to enter the market and compete effectively. These barriers can take various forms, such as high capital requirements, economies of scale, product differentiation, or legal and regulatory barriers.

In this case, Intel, being a dominant player in the microprocessor market, has the potential to create barriers to entry for AMD by leveraging its market power. By withholding shipments of its Pentium 4, Intel can exert pressure on Toshiba or other potential customers, dissuading them from doing business with AMD.
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Anonymous
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3 months ago
Help! The answer is missing an explanation...
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