Which of the following statements about the Internet's effect on the competitive forces that exist in a company's environment is true?
A) The Internet increases barriers to entry.
B) Overall, the Internet tends to decrease the bargaining power of suppliers.
C) The Internet blurs differences among competitors.
D) The Internet creates fewer substitution threats.
E) All of these

Question

Quizplus · Accepted Answer

The Internet has a tendency to blur the differences among competitors because it allows for easier access to information and products. This means that companies are more easily compared and customers are more likely to switch between them. The other options are incorrect. The Internet tends to decrease barriers to entry (A), as it makes it easier for new companies to enter the market. The Internet actually tends to increase the bargaining power of suppliers (B), as they can reach more customers and have more leverage. The Internet also creates more substitution threats (D), as it allows for more options and easier access to information about alternative products.

Which of the Following Statements About the Internet's Effect on the Competitive