Use the discussion questions to engage further with the text – form debates with friends or formulate essay questions using them to open up new avenues of learning and help with revision.

1. Visit the websites of several major restaurant chains. Identify the industry(s) in which each one operates. Would you categorize them in the same industry or in different industries (e.g., fast food, family restaurants)? Why or why not?

2. Identify an industry that has low barriers to entry and one that has high barriers. Explain how the difference in entry barriers influences competitive behavior in these industries.

3. Identify some businesses whose sales have been adversely affected by substitute products. Why has this occurred?

4. Identify an industry in which the suppliers have strong bargaining power and another industry in which the buyers have most of the bargaining power. How does this affect potential profitability in the industries?