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Exam L4M6 Topic 1 Question 112 Discussion

Actual exam question for CIPS's L4M6 exam
Question #: 112
Topic #: 1
Laura is working with suppliers on the design of a component for a new boiler. One of the current suppliers suggested manufacturing the component from plastic they recently developed and patented, rather than commonly used brass. What competitive force is this supplier creating in the market to affect competition?

Suggested Answer: B Vote an answer

Comprehensive and Detailed Explanation:
In Porter's Five Forces framework, thethreat of substitutesrefers to the availability of products or services that can perform the same function as the industry's product. The supplier's suggestion to use a newly developed plastic component instead of the traditional brass one introduces a substitute product. This alternative can potentially change the dynamics of the market by offering different benefits, such as cost savings or improved performance, thereby affecting competition.
Reference:
CIPS L4M6 Study Guide

by Matt at Jul 03, 2026, 06:24 PM

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