Exam 2: External Analysis: the Identification of Opportunities and Threats

When shopping for clothing such as shirts and jeans, Tyrone only buys products from Eastern Clothing Company even if there are several other companies that offer similar products at lower prices. Tyrone's preference for Eastern Clothing Company demonstrates:

Which of the following statements about government regulations in the context of entry barriers of an industry is true?

Which of the following costs arise when a customer invests time, energy, and money shifting from the products offered by one established company to the products offered by a new entrant?

As an industry enters the decline stage:

One of the defining characteristics of the mature stage of the industry life cycle is that growth is low or zero.

Substitute products are not a threat if a company is the market leader.

Which of the following is a difference between the bargaining power of buyers and the bargaining power of suppliers?

Which of the following occurs immediately after the growth stage of the industry life cycle?

Economies of scale can arise from:

A group of firms manufactures writing implements such as pens, pencils, and markers. This group should be referred to as a(n):

When buyers are in a weak bargaining position, companies in an industry must lower their prices to increase profits.

Studying industry changes over time is essential for businesses to understand the strength of the competitive forces but does not provide insight into opportunities and threats in the industry.

Which of the following identifies the main difference between an opportunity and a threat for a company's environment?

The Smith boys want to get the new Xbox console for Christmas, but their parents are hesitant to buy it because the family already owns the two latest versions of the PlayStation consoles with multiple games and extra controllers. Their decision to remain with the PlayStation is due to which of the following?

In the late 1800s, when the automobile was first manufactured, the automobile industry would have been considered which of the following industries?

Brand loyalty can be created by:

Demand reaches total saturation in which of the following stages of the industry life cycle?

Government deregulation of telephone service lowered the barriers to entry and lowered industry profit rates.

Mars, Hershey's, Lindt and Nestle all compete in the same industry.

Americans are currently living longer now than in the past because of advances in medicine. As a result, the sale of products that meet the needs of older individuals, such as devices that assist in walking and movement, have increased. In the context of an industry's macroenvironment, age is considered which type of force?