Exam 3: External Analysis: the Identification of Opportunities and Threats

The industry life cycle model identifies four sequential stages in the evolution of an industry that lead to four distinct kinds of industry environment.

In a declining industry, competition usually decreases.

The bargaining power of an industry's suppliers is greater when

Demand reaches total saturation in the ___________ stage of the industry life cycle.

High levels of immigration into the U.S. in recent years have had an impact on which of the following macroenvironmental factors?

Mobility barriers

Strategic groups are groups of companies in which each company follows a strategy that is similar to that pursued by other companies in the group, and is the same strategy followed by companies in other groups.

Which of the following industry structures consists of a large number of small and medium-sized companies, none of which is in a position to determine industry price?

A company's closest competitors are those that

Potential competitors are companies that are currently competing in an industry, but have the capability to do so if they choose.

Which of the following industry structures is dominated by a small number of large companies?

Julian is asked to examine the demographic environment facing his employer, a clothing manufacturer. Which of the following should Julian examine?

The concept of strategic groups suggests that

The growth industry is where demand is expanding as second-time consumers enter the market.

Members of a strategic group

A group of companies offering products or services that are close substitutes for each other is referred to as a(n)

Growth in an embryonic industry is slow because of buyers' unfamiliarity with the industry's product, high prices due to the inability of companies to reap any significant scale of economies, and poorly developed distribution channels.

Managers must anticipate how the strength of industry competitive forces will change as the industry evolves and then formulate appropriate strategies to take advantage of opportunities.

Merck, Eli Lilly, and Pfizer are examples of?

Exit barriers are the economic, strategic, and emotional factors that prevent companies from leaving an industry.