Question 1

StreamForge is a new esports broadcasting platform. The industry is currently dominated by two massive tech giants who have exclusive, multi-year contracts with all major gaming tournaments and possess proprietary streaming compression algorithms. According to Porter's Five Forces, which force is primarily protecting the tech giants from StreamForge's entry?

Accepted Answer

Look at what is stopping the new company (StreamForge) from succeeding. The existing companies have built 'moats' (contracts, tech) which are classic barriers to entry.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Selecting supplier power because contracts are mentioned. The contracts are a tool used to create a barrier to entry.

How to approach this question

Full Answer

Common mistakes

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