Review Quiz: Can You Identify Each Force in an Example?

Too many learners jump straight into analyzing industries using a generic diagram without questioning the underlying logic. You’ve seen it: a clean five-point star with labels like “Rivalry” and “Suppliers,” but no real engagement with what those forces mean in context.

Here’s the truth: the diagram is a scaffold, not the strategy. The real learning begins when you start asking, “Why would this force matter here?”

This quiz is designed to test your ability to go beyond labels and detect the real competitive pressures in actual business environments. You’re not memorizing definitions—you’re learning to see the forces in action, just as a seasoned strategist would.

Each scenario describes a business in a real-world setting. Your task? Match the observed situation to the correct Porter’s Five Force. Use your understanding from earlier chapters to reason through each one. This isn’t about speed—it’s about spotting the right signal in the noise.

Take your time. Check your assumptions. You’ll grow more from one thoughtful answer than five quick guesses.

Quiz: Identify the Five Force in Each Scenario

For each of the following scenarios, select which of Porter’s Five Forces is most directly at play.

1. A local bookstore notices that when it raises prices, customers start buying more books online—especially through Amazon and independent e-retailers. Sales drop significantly on certain titles.

   • Threat of Substitutes
   • Competitive Rivalry
   • Buyer Power
   • Supplier Power

2. A regional electric utility company has no real competitors. The government regulates its rates, and it has exclusive rights to service the area. New companies can’t enter because of massive infrastructure costs and permits.

   • Threat of New Entrants
   • Supplier Power
   • Buyer Power
   • Threat of Substitutes

3. A tech startup specializing in smart home devices is struggling to secure raw materials like rare earth metals. The few suppliers who produce them are located in countries with political instability and trade restrictions.

   • Competitive Rivalry
   • Supplier Power
   • Buyer Power
   • Threat of Substitutes

4. Two major coffee chains dominate a city. They frequently offer discounts, loyalty rewards, and seasonal products. One recently introduced a new drink line that caused the other to lower prices to match.

   • Threat of New Entrants
   • Competitive Rivalry
   • Buyer Power
   • Supplier Power

5. A chain of fast-food restaurants depends on a single supplier for its signature burger buns. That supplier recently announced a 20% price increase with no option to negotiate.

   • Buyer Power
   • Supplier Power
   • Threat of New Entrants
   • Threat of Substitutes

6. A university’s online learning platform has seen growing student demand for alternative certifications, like coding bootcamps and micro-credentials. Many students now choose these over full degree programs.

   • Threat of Substitutes
   • Buyer Power
   • Competitive Rivalry
   • Supplier Power

How to Score Your Answers

Check your answers against the key below. But don’t stop there—reflect on what made each choice correct.

Here’s the real test: can you explain why the force applies in each situation? That’s where strategic thinking truly begins.

Scenario	Correct Force	Why It Applies
1. Bookstore losing customers to online retailers	Threat of Substitutes	Online book sales offer a different way to meet the same need—reading. The availability of a strong alternative reduces the bookstore’s pricing power.
2. Utility company with no competition	Threat of New Entrants	Limited entry due to high barriers (infrastructure, regulation) means existing rivals face almost no new competition. The industry is protected by structure, not just policy.
3. Startup facing supply issues for rare earth metals	Supplier Power	Few suppliers, geographic concentration, and political risks give them leverage. The startup has little choice but to accept price increases or risk disruption.
4. Coffee chains matching each other’s pricing	Competitive Rivalry	Direct competition between two major players leading to frequent price wars and marketing battles shows high rivalry.
5. Fast-food chain dependent on one bun supplier	Supplier Power	Single supplier with no negotiation options gives it control over terms and prices.
6. Students choosing bootcamps over degrees	Threat of Substitutes	Bootcamps and certifications substitute for traditional degree programs. They deliver similar value in less time and with lower cost.

Now, take a moment to reflect. These aren’t just textbook examples. They mirror real decisions businesses face every day.

When you see a situation like the bookstore or the coffee wars, ask: Who benefits? Who’s at risk? What could change this dynamic? That’s how you turn analysis into insight.

Use these questions as a foundation for deeper thinking:
– How might the threat of substitutes evolve in the next 5 years?
– Could buyer power increase if customers unite through a loyalty coalition?
– What would it take to break a supplier’s control?

Each question is a path to better understanding—not just of the forces, but of how markets truly behave.

Why This Matters: Strategy Review Questions for Real-World Thinking

Understanding the forces isn’t just for exams. It’s about seeing the world through a strategist’s eyes.

Ask yourself these strategy review questions after every analysis:

• What evidence do I have that this force is strong?
• Is the threat immediate, or will it grow over time?
• Could a change in regulation, technology, or consumer preference alter this force?
• Does one force interact with another—like high rivalry increasing buyer power?

These aren’t just questions. They’re habits of a skilled analyst.

Remember: no scenario is perfect. In real life, forces overlap. A single business might face high supplier power, high rivalry, and rising substitutes—simultaneously. Your job is to identify the most significant ones, not just every force that’s present.

This is where competitive analysis examples become powerful tools. They train your eye to spot patterns rather than memorize labels.

As I’ve seen in my 20 years of advising startups and mid-sized firms, the most common mistake is treating the model as a checklist rather than a diagnostic lens.

Don’t just check off “rivalry,” “suppliers,” “buyers”—ask: What’s driving this? Who has the power? Can they change? That’s how you move from theory to practice.

Next Steps: From Quiz to Real Strategy

You’ve just completed a real-world test. Now, take the next step:

1. Revisit your earlier five forces checklist from Chapter 3.

2. Apply the same questions to a real business you know—your local grocery store, a favorite café, or your university’s online services.

3. Write a short paragraph explaining which force is strongest—and why.

4. Then, ask: If I were the owner, what would I do to strengthen my position? That’s where learning becomes leadership.

These small actions—reflections, comparisons, real-world testing—are how you build the kind of strategic mindset that lasts.

Frequently Asked Questions

Can the same business experience multiple strong forces at once?

Absolutely. A company can face high rivalry, strong buyer power, and rising substitutes simultaneously. The key is identifying which forces are most critical to profitability and strategy. Prioritization comes from impact—not just presence.

What if I don’t recognize a force in a scenario?

Start by asking: Who benefits? Who is under pressure? If customers can switch easily, it’s likely buyer power or substitutes. If inputs are hard to get, it’s supplier power. If competitors are aggressive, it’s rivalry. If new firms can’t enter, the threat is low. These clues are your compass.

How does this quiz help me in real business decisions?

It trains you to see behind the surface. In a real job or project, you’ll need to spot hidden risks—like a supplier with leverage or a substitute service gaining speed. This quiz sharpens your ability to detect those early.

Is it okay if I get a few wrong?

More than okay. It’s expected. Even seasoned analysts misjudge forces sometimes. What matters is how you analyze your mistakes. Did you confuse rivalry with buyer power? That’s a sign to revisit the definitions and look for behavioral cues—like price wars vs. bulk purchasing.

Can I use this quiz for group learning or classroom discussion?

Yes. Use each scenario as a prompt for debate. Have students defend their choices. Turn it into a “strategy debate” where teams argue for and against a force’s strength. This builds critical thinking and communication—skills that matter far beyond the classroom.

How often should I return to this kind of analysis?

At least once every few months. Markets shift. New entrants emerge. Consumer preferences change. Reassessing forces keeps your strategy grounded in reality, not outdated assumptions.

After this quiz, you’ve not just reviewed— you’ve deepened your understanding. That’s what real learning feels like: not repetition, but connection.

Keep asking: Why is this happening? What’s the real power? What can I do about it? That’s the heart of strategic thinking.