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