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Nigel French, an analyst a Tannvestment Management is analyzing Archway Technologies, Wright. French is asked to evaluate Archways profitably over the past five years relative

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Nigel French, an analyst a Tannvestment Management is analyzing Archway Technologies, Wright. French is asked to evaluate Archways profitably over the past five years relative to its Force Read carefully the following information and answer questions 7 and 8 of , Llakave structures French begins by assessing Archway competitive position within the foury electronic auto equipment industry using one's live foreles mework. A mayor trenes industry analysis is presented in Exhibiti Exhibit Analysis of Luxury Electronie Auto Equipment Industry Uning Porter's Five Forces Framework Faetors to consider Threat of substitutes Customer switching costs are high Rivalry Archiway holds 60% of world market share: each of its two main competitors holds 15% Bargaining power of suppliers Primary inputs are considered basic commodities, and there are a large number of suppliers Bargaining power of buyers Luxury electronic auto equipment is very specialized (non- standardized) Threat of new entrants High fixed costs to enter industry 7. Based on the current competitive landscape presented in Exhibit 1, French should conclude that Archway's ability to A. demand lower input prices from suppliers is low. B. pass rising costs along to customers is high. C. generate above-average returns on invested capital is low. 8. Based on the current competitive landscape presented in Exhibit 1, Archway's operating profit margins over the forecast horizon are least likely to A. decrease. B. increase. C. be higher than its competitors

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