How Organizations Adapt to Their Environment

Michael Porter suggested that managers view the environments in which they operate in terms of five competitive forces. These are the threat of new entrants, competitive rivalry, the threat of substitute products, the power of buyers, and the power of suppliers.

Using your knowledge of the environmental forces, indicate which environmental force is represented by each example.

New Entrants

Competitors

Suppliers

Buyers

Substitutes

Another bank just released an app that lets customers easily analyze their finances on their phones.

Aardvark is the only commercial supplier of paper straws.

Becoming a content creator on social media platforms like TikTok requires nothing but a phone and an idea.

Teledoc Health now offers $24/7$ online medical appointments that are covered by insurance.

Corporate jet purchases are made by a small number of affluent individuals with many transportation options.

Organizations can adapt to the forces in their environments. They have several methods available to them. The question presents several examples of the actions organizations took in response to forces in the environment.

For each action, indicate the environmental threat that action was intended to mitigate.

New Entrants

Competitors

Suppliers

Buyers

Substitutes

Facebook acquired Instagram.

AT&T$,$ a cable provider, merged with DirecTV, a satellite provider.

Facebook is funding the development of infrastructure that will provide Internet access in developing countries.