Exam 4: Rameworks for the Analysis of Industry Environments

If substitute products or services are readily available, then firms in the industry are likely to suffer lower average profitability.

The influence of industry membership on firm performance accounts for eighty percent of the variation in the performance of any single firm in that industry.

If a SWOT analysis shows that a firm has critical internal weaknesses that do not allow it to take advantage of environmental opportunities, the firm should pursue a strategy focusing on ______________.

Successful positioning requires that managers understand ______________.

The boundaries of industries become permanently fixed over time.

A drawback of SWOT Analysis is that its use is likely to yield few clear-cut recommendations.

Discuss the drawbacks and limitations of SWOT analysis.

If a SWOT analysis shows that a firm has both critical internal weaknesses and numerous environmental opportunities, the firm should pursue a strategy focusing on ______________.

An industry refers to a group of companies that share similar customers, offer similar products and services, and use similar technologies to provide those products and services.

Generally, the more firms that there are in an industry, the greater the rivalry will be among the incumbent firms.

Rapidly growing markets tend to be more competitive and often unattractive to entry by new or existing firms.

Average industry performance levels are heavily impacted by the macroeconomic business cycle because some industries are much more cyclical than others.

The most serious limitation of SWOT is its ______________.

What two factors are generally the most critical in determining supplier power?

The "S" in the acronym SWOT stands for ______________.