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Hello
The question says:
(a) Use Porter’s five forces framework to assess the attractiveness, to NESTA, of entering the discount fixed-price retail market in Eurobia.Notice that it mentions EUOBIA, however in the answer, they mention some of the points from the first paragraph which relates to NESTA’s current country of Eyanke.
My question therefore is am i missing something? After going through the question i would have mentioned teh points from paragraph 2 onwards which relate to Erobia.
links:
https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/p3/exampapers/p3_2013_jun_q.pdfhttps://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/p3/exampapers/p3_2013_jun_a.pdf
The first paragraph relates to Nesta’s suppliers and the bargaining power of suppliers in Euobia are likely to be the same as those in Eyanke eg:
-The products supplied by the supplier earn a relatively low profit margin for the buyer [Nesta]. Low profits provide a great incentive to buyers to pursue lower purchasing costs.
– Switching costs are relatively low as the products are largely unbranded commodity goods. The buyer [Nesta] should find it relatively easy to switch supplier.
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