Answer to Question 1
A model used to assess an industry structure is Porter's five forces model. According to this model, five competitive forces determine industry profitability: bargaining power of customers, threat of substitutes, bargaining power of suppliers, threat of new entrants, and rivalry among existing firms.
A substitute performs the same or similar function as an industry's product by another means.
The threat from new entrants is based on industry barriers to entry and the reaction new entrants can expect from established companies in the industry.
The competition from industry rivals, also called copycats, is high when rivals compete with each other using price discounting, new products, and service improvements.
The last two forces concern bargaining power forces from suppliers or from customers. The strength of these forces depends on the number of available suppliers and buyers, switching costs, the differentiation of the product, and the relative size of the firm compared to the size of suppliers or customers.
Answer to Question 2
TRUE
Explanation: These tools are often referred to as design recovery tools because their primary benefit is to create high-level design documents of a program by reading and analyzing its source code.
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