How does competition in the IT services industry differ from the printer/copier industry? Prepare and compare Five Forces Models of Competition for the two IT industry segments. Select yes for those statements that are accurate and choose no for those that are not.

1. The threat of entry in the IT industry is moderate/medium. (Click to select) Yes No
2. Large and up-front investments are necessary to have the technology to be able to compete in this market. (Click to select) Yes No
3. Switching costs for IT services can be high; therefore, companies are less likely to switch between IT and service vendors. (Click to select) Yes No
4. There are complicated intellectual property rules, relatively small life cycles for products, and the market requires specialist knowledge. These factors lead to a moderate threat of entry. (Click to select) Yes No
5. Threat of substitutes is high in the IT industry. (Click to select) Yes No
6. Supplier bargaining power is moderate/medium in this industry. (Click to select) Yes No
7. There are few competing suppliers, hence switching costs are high. (Click to select) Yes No
8. Buyers have many firms to select for their IT and service systems; however, once a firm is selected, switching costs can be very high. (Click to select) Yes No
9. The ability to collude and drive down prices is very difficult given the number of businesses buying IT and service, hence buyer bargaining power is of medium strength. (Click to select) Yes No
10. Consumers have the ability to create all their IT tools in-house at a very low cost. (Click to select) Yes No
11. Competitive rivalry in the IT industry is high given the number of strong competitors (Google, IBM, Amazon). (Click to select) Yes No
13. It is not difficult for established companies to maintain a competitive advantage in this industry. (Click to select) Yes No