Question 1

[Section A] In the context of Porter's Five Forces, a manufacturer of premium Electric Vehicles (EVs) is analyzing its market position. The manufacturer notes that public transportation networks are improving rapidly, and e-bikes are becoming highly popular for urban commuting. Which of Porter's forces do these developments primarily strengthen?

Accepted Answer

Determine if the alternatives (public transport, e-bikes) are direct competitors in the same industry, or different products fulfilling the same underlying need.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Confusing substitutes with direct competitors (rivalry). Substitutes come from outside the immediate industry.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA BT — Business & Technology Practice Exam 2

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