Michael Porter suggested that managers view the environments in which they operate in terms of five competitive forces. These are the threat of new entrants, competitive rivalry, the threat of substitute products, the power of buyers, and the power of suppliers.

Using your knowledge of the environmental forces, indicate which environmental force is represented by each example.

	New Entrants	Competitors	Suppliers	Buyers	Substitutes
New app providers come into the market every day.
Aardvark is the only commercial supplier of paper straws.
Website services such as Wix allow users to easily create professional-looking websites for free.
Teledoc Health now offers 24/7 online medical appointments that are covered by insurance.
Corporate jet purchases are made by a small number of affluent individuals with many transportation options.

Organizations can adapt to the forces in their environments. They have several methods available to them. The question presents several examples of the actions organizations took in response to forces in the environment.

For each action, indicate the environmental threat that action was intended to mitigate.

	New Entrants	Competitors	Suppliers	Buyers	Substitutes
Financial services firm Morgan Stanley acquired E*Trade.
Recognizing the rapid growth in sales of milk substitutes like almond milk, dairy-milk processors developed a $50 million ad campaign to promote the protein benefits of cow milk.
Firms can sign long-term contracts to stabilize prices for orders over time.