Exam 4: Further Topics in Industry and Competitive Analysis

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

To analyze the profit potential of different industry segments, we can use the same Porter five forces of competition framework that we use to analyze the profit potential of different industries.

The prediction that hypercompetition makes competitive advantage temporary:

Within a business ecosystem, the migrates of value between groups f firms is the result of external forces such as technology, regulation, and changing customer preferences.Individual firms have little power to influence value migration.

The distinction between legitimate competitive intelligence and industrial espionage:

"Profit pool mapping" describes a technique for:

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

A key limitation of Porter's five forces framework is that:

Business model mapping is a useful technique for developing strategy for firms:

Competitive intelligence, the systematic collection and analysis of information about rival firms, is:

Industry membership is the single most important source of profitability differences between firms.

The main usefulness of strategic group analysis is in analyzing interfirm profitability differences within an industry; it is less useful as a tool for describing the strategic positioning of firms within an industry.

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.

The relationship between commitment and strategic options may be best described as:

Business models can assist strategy formulation for firms that are located within complex business ecosystems.

Unlike most strategic management concepts, there is little ambiguity over what a business model is.

When products A and B are complements, the division of profit between the supplier of A and the supplier of B will depend upon which builds the stronger market position and is better able to reduce the value contributed by the other.

Barriers to mobility are:

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

A "winner-take-all industry" is one in which the market leader earns the great majority of the industry's total profits.