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

Opportunities arise when a company can take advantage of conditions in its environment to formulate and implement strategies that allow it to become more profitable.

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 a:

Strong brand loyalty and high customer switching costs are low barriers to entering an industry.

Brand loyalty can be created by:

In Porter's competitive forces framework, the stronger the five forces, the ability of established companies to raise prices and earn greater profits becomes more limited.

Due to a recent relaxation in the pollution control laws by the government, Alpha Motors has reduced the production of  its electric-powered cars. The company is responding to a change in which of the following macroenvironmental forces?

The punctuated equilibrium view can be described as a freezing, but not unfreezing, process in an industry's life-cycle.

Growing demand tends to reduce rivalry because all companies can sell more without taking market share away from each other.

A baking company has different product ranges like whole-wheat pizzas for the diet-conscious and rich cookies for children and youngsters. The company is catering to different groups of customers known as:

An industry can be defined as a group of:

Common exit barriers include:

As a barrier to new entry, absolute cost advantages can be based on:

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

Which of the following is NOT one of the factors in the economic forces of the macroenvironment?

Starbucks and an independent local café are different in terms of their business techniques. They both sell coffee, and therefore belong to the same strategic group.

Which of the following statements is true about complementors?

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

Members of a strategic group:

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

Which of the following is currently an embryonic industry?