Exam 4: Further Topics in Industry and Competitive Analysis

In European airline industry,EasyJet,Baltic Air,WizzAir,and Ryanair:

The distinction between legitimate competitive intelligence and industrial espionage:

Competitive intelligence involves the systematic collection and analysis of public information about suppliers and customers to aid decision making.

A strategic group is a group of firms in an industry that serving the same market segment.

In hypercompetitive markets,the quest for sustainable competitive advantage is the overwhelmingly important priority for firm strategy.

Game theory seeks to predict the outcome of competitive situations by modeling the interactive decisions by firms,

In the automobile industry barriers to firms' mobility between different segments tend to be low,hence profitability differences between segments are not sustained over long periods of time.

A firm will choose to compete across multiple segments rather than specialize in a single segment if:

Empirical research shows that proportion of inter-firm differences in profitability that industry factors explain is:

The "prisoners' dilemma" can be resolved by changing the payoffs in a way that induces cooperative behavior.

Porter's five forces model offers a rigorous,empirically validated approach to explaining the variation in profitability across industries

The Schumpeterian view of competition emphasizes the role of innovation and entrepreneurship

The difference between barriers to entry and barriers to mobility is:

The more similar are key success factors across the different segments of an industry,the more likely it is that the firms within that industry will specialize by segment.

Competitive intelligence aims to:

Joseph Schumpeter perceived competition among companies as:

The propensity for similar businesses to cluster in the same locality (e.g.IT companies in Silicon Valley,insurance companies in London)is evidence of the intensity of the competitive instincts that drive business owners.

The difference between substitute and complementary products may be summarized as follows:

A company whose primary goal is profitability is likely to be a much more aggressive competitor than one whose primary goal is market share.

Schumpeter's process of "creative destruction" challenges Porter's five forces of competition framework by: