Question 1

Section A

GhostBites operates a network of 'cloud kitchens' (delivery-only food preparation facilities). Recently, meal-kit delivery services (where customers cook pre-portioned ingredients at home) have surged in popularity. In the context of Porter's Five Forces, which force does the rise of meal-kits primarily represent for GhostBites?

Accepted Answer

Identify that meal-kits are not direct competitors (they don't sell hot, ready-to-eat food) but they satisfy the same underlying consumer need (convenient meals). This defines a substitute.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Confusing 'Threat of new entrants' with 'Threat of substitutes'. Entrants do the same thing; substitutes do something different that achieves the same goal.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA BT — Business & Technology Practice Exam 4

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