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1. You work as a production manager in a company that makes cars for the mass market. At a manager's meeting, your boss asks you to come up with one reason why profitability continues to stagnate using your knowledge of the industry. The components in the car are standardized and the car is a homogeneous product. Which of the following industry analysis statements is most relevant?
a) The bargaining power of suppliers is likely to be high as the cars use standardized components.
b) The availability of substitutes will be low because the product is homogenous.
c) The threat of entry is likely to be low because the product is a homogeneous.
d) Competitive rivalry is likely to be high because it is an undifferentiated product.
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