CIMA Exam CIMAPRA19-E02-1 Topic 7 Question 105 Discussion

Actual exam question for CIMA's CIMAPRA19-E02-1 exam

Question #: 105
Topic #: 7

A business manufacturing running trainers is considering exporting to a fast growing Asian market. Using Porter's Five Forces, which of the following statements is most likely to be incorrect?

ASupplier power is likely to be high

BCompetitive rivalry is likely to be high

CNew entrants are likely to be low

DSubstitutes are likely to be high

Show Suggested Answer

Suggested Answer: A

by German at Jan 12, 2025, 10:54 PM

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Latrice

4 months ago

I'm feeling the need for speed on this one. I think option C is the way to go. New entrants? Pshh, they're gonna be lining up in Asia like it's a Black Friday sale!

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Josefa

3 months ago

D: Competitive rivalry is likely to be high in a fast growing market. That's where the real competition is.

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Germaine

3 months ago

C: Well, I think substitutes are likely to be high. There's always new technology coming out.

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Vernice

3 months ago

B: I disagree. I believe supplier power is likely to be high in that market.

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Marsha

3 months ago

A: I think option C is incorrect. New entrants are likely to be low in a fast growing Asian market.

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Beth

5 months ago

Haha, this question is making me sweat like a runner in the summer. But I'd have to say option B is the odd one out. Competitive rivalry? In Asia? You betcha!

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Elvis

5 months ago

Oh man, this is a tough one. I'd have to go with option D. Substitutes for running trainers? There's gotta be a lot of those in Asia!

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Talia

4 months ago

Yeah, I agree. It's important for the business to consider all factors before entering that market.

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Tish

4 months ago

I think you're right, there are probably a lot of substitutes for running trainers in Asia.

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Moon

5 months ago

Hmm, I'm not sure. I think option A might be the one that's off. Suppliers in Asia could have less bargaining power.

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Bernardo

4 months ago

User 3: Maybe new entrants are actually high in the Asian market, making option C incorrect.

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Vallie

5 months ago

User 2: I agree, it's possible that supplier power is not as high in that market.

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Zoila

5 months ago

User 1: I think option A might be incorrect. Suppliers in Asia might not have high power.

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Kayleigh

5 months ago

I agree with Chanel, because in a fast growing market, there are usually more opportunities for new entrants.

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Chanel

5 months ago

I disagree, I believe the correct answer is C) New entrants are likely to be low.

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Tiera

5 months ago

I think the answer is A) Supplier power is likely to be high.

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Gilma

5 months ago

I think option C is the most likely to be incorrect. New entrants in a fast-growing Asian market would definitely be high.

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Jaleesa

5 months ago

A: So, it's safe to say that option C is not accurate when considering Porter's Five Forces.

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Fabiola

5 months ago

B: I agree, there would be a lot of competition from new players entering the market.

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Odette

5 months ago

A: I think option C is incorrect. New entrants are likely to be high in a fast-growing market.

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