Question 1

The lower the user's switching costs, the

Accepted Answer

A) harder it is for the sellers of attractive substitutes to lure buyers to their offering. 
B) more intense the competitive pressures posed by substitute products. 
C) less intense the competitive pressures posed by substitute products. 
D) greater the bargaining power from both suppliers and influential customers. 
E) lesser the bargaining power from both suppliers and influential customers. 
A) harder it is for the sellers of attractive substitutes to lure buyers to their offering. 
B) more intense the competitive pressures posed by substitute products. 
C) less intense the competitive pressures posed by substitute products. 
D) greater the bargaining power from both suppliers and influential customers. 
E) lesser the bargaining power from both suppliers and influential customers.

Question 2

The extent to which firms are meeting objectives suggests they

Accepted Answer

A) are likely to prosper in the future. 
B) are likely to continue their present strategy with only minor fine-tuning. 
C) are virtually certain to make fresh strategic moves. 
D) recognize the status quo as the best course of action to adopt 
E) realize that refocusing will ensure competitive gains. 
A) are likely to prosper in the future. 
B) are likely to continue their present strategy with only minor fine-tuning. 
C) are virtually certain to make fresh strategic moves. 
D) recognize the status quo as the best course of action to adopt 
E) realize that refocusing will ensure competitive gains.

Question 3

When evaluating whether an industry's environment presents a company with an above-average profitability and an attractive business opportunity, it primarily involves

Accepted Answer

A) determining the industry's outlook for future profitability. 
B) determining which firms in the industry have a competitive advantage and how they got their advantage. 
C) determining the overall strength of the five competitive forces. 
D) constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group to determine the overall attractiveness of all the strategic groups. 
E) using value chain analysis to determine the relative cost positions of rival firms and to learn who the industry's low-cost producer is. 
A) determining the industry's outlook for future profitability. 
B) determining which firms in the industry have a competitive advantage and how they got their advantage. 
C) determining the overall strength of the five competitive forces. 
D) constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group to determine the overall attractiveness of all the strategic groups. 
E) using value chain analysis to determine the relative cost positions of rival firms and to learn who the industry's low-cost producer is.

Question 4

Determining how strong the threat of substitutes will be entails

Accepted Answer

A) identifying the relative price/performance relationship of the substitutes, the switching costs, and the overall buyer demand for the substitute. 
B) identifying the attractiveness of other industries. 
C) measuring Coke as a substitute for Pepsi and applying dynamic simulation modeling techniques. 
D) adopting a substitute product concentration factor to the buyer volume. 
E) judging whether industry members are capable of self-manufacturing their products. 
A) identifying the relative price/performance relationship of the substitutes, the switching costs, and the overall buyer demand for the substitute. 
B) identifying the attractiveness of other industries. 
C) measuring Coke as a substitute for Pepsi and applying dynamic simulation modeling techniques. 
D) adopting a substitute product concentration factor to the buyer volume. 
E) judging whether industry members are capable of self-manufacturing their products.

Question 5

Using the five forces model of competition to determine the character and strength of the competitive forces within a given industry involves

Accepted Answer

A) building the picture of competition in three steps: (1)identify the different parties involved, along with specific factors that bring about competitive pressures; (2)evaluate how strong the pressures stemming from each of the five forces are (strong, moderate or weak); and (3)determine whether the collective impact of the five competitive forces is conducive to earning attractive profits in the industry. 
B) building the picture of competition in two steps: (1)determine which rival has the biggest competitive advantage and (2)assess whether the competitive advantages possessed by various industry members allow most industry members to earn above-average profits. 
C) evaluating whether competition is being intensified or weakened by the industry's driving forces and key success factors. 
D) assess whether the collective impact of all five forces is weak enough to allow industry members to go on the offensive or use a defensive strategy to insulate against fierce competitive pressures. 
E) gauging the overall strength of competition based on how many industry rivals are operating with a competitive advantage and how many are operating at a competitive disadvantage. 
A) building the picture of competition in three steps: (1)identify the different parties involved, along with specific factors that bring about competitive pressures; (2)evaluate how strong the pressures stemming from each of the five forces are (strong, moderate or weak); and (3)determine whether the collective impact of the five competitive forces is conducive to earning attractive profits in the industry. 
B) building the picture of competition in two steps: (1)determine which rival has the biggest competitive advantage and (2)assess whether the competitive advantages possessed by various industry members allow most industry members to earn above-average profits. 
C) evaluating whether competition is being intensified or weakened by the industry's driving forces and key success factors. 
D) assess whether the collective impact of all five forces is weak enough to allow industry members to go on the offensive or use a defensive strategy to insulate against fierce competitive pressures. 
E) gauging the overall strength of competition based on how many industry rivals are operating with a competitive advantage and how many are operating at a competitive disadvantage.

Question 6

Which of the following is particularly pertinent in evaluating whether an industry presents a sufficiently attractive business opportunity?

Accepted Answer

A) the industry's growth potential, whether competition appears destined to become stronger or weaker, and whether the industry's overall profit prospects are above average, average, or below average 
B) an assessment of which firms in the industry have the best and worst competitive strategies, whether the number of strategic groups in the industry is increasing or decreasing, and whether economies of scale and experience curve effects are a key success factor 
C) whether there are more than five key success factors and more than five barriers to entry 
D) constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group 
E) whether the market leaders enjoy competitive advantages and how hard it is to develop a strongly differentiated product 
A) the industry's growth potential, whether competition appears destined to become stronger or weaker, and whether the industry's overall profit prospects are above average, average, or below average 
B) an assessment of which firms in the industry have the best and worst competitive strategies, whether the number of strategic groups in the industry is increasing or decreasing, and whether economies of scale and experience curve effects are a key success factor 
C) whether there are more than five key success factors and more than five barriers to entry 
D) constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group 
E) whether the market leaders enjoy competitive advantages and how hard it is to develop a strongly differentiated product

Question 7

What is the value of using Michael Porter's Framework for Competitor Analysis to observe competitors and trying to predict what moves they will make next?

Accepted Answer

Unless a company pays attention to the s

Question 8

Identify five factors that tend to weaken the intensity of competitive rivalry among an industry's member firms.

Accepted Answer

Rivalry among competing sellers decrease

Question 9

Which of the following is not a good example of a substitute product that triggers stronger competitive pressures?

Accepted Answer

A) a salad as a substitute for French fries 
B) wireless phones as a substitute for wired telephones 
C) Coca-Cola as a substitute for Pepsi 
D) snowboards as a substitute for snow skis 
E) video-on-demand services from a cable TV company as a substitute for going to the movies 
A) a salad as a substitute for French fries 
B) wireless phones as a substitute for wired telephones 
C) Coca-Cola as a substitute for Pepsi 
D) snowboards as a substitute for snow skis 
E) video-on-demand services from a cable TV company as a substitute for going to the movies

Question 10

As a rule, the collective impact of competitive pressures associated with the five competitive forces

Accepted Answer

A) determines the strength of the industry's driving forces. 
B) determines the extent of the competitive pressure on industry profitability. 
C) means that fewer companies can achieve a competitive advantage via anything other than being the industry's low-cost leader. 
D) means there will be a larger number of competitive advantage opportunities for industry members. 
E) means there will be a greater number of industry key success factors. 
A) determines the strength of the industry's driving forces. 
B) determines the extent of the competitive pressure on industry profitability. 
C) means that fewer companies can achieve a competitive advantage via anything other than being the industry's low-cost leader. 
D) means there will be a larger number of competitive advantage opportunities for industry members. 
E) means there will be a greater number of industry key success factors.

Question 11

Identify the five most impactful driving forces in the hospitality and lodging industry and briefly explain how each one can produce important changes in industry and competitive conditions.

Accepted Answer

Salient drivers of industry change in ho

Question 12

Potential entrants are more likely to be deterred from actually entering an industry when

Accepted Answer

A) incumbent firms are willing and able to be aggressive in defending their market positions against entry. 
B) incumbent firms are complacent. 
C) buyers are not particularly price-sensitive and the industry already contains a dozen or more rivals. 
D) the relative cost positions of incumbent firms are about the same, such that no one incumbent has a meaningful cost advantage. 
E) buyer switching costs are moderately low because of strong product differentiation among incumbent firms. 
A) incumbent firms are willing and able to be aggressive in defending their market positions against entry. 
B) incumbent firms are complacent. 
C) buyers are not particularly price-sensitive and the industry already contains a dozen or more rivals. 
D) the relative cost positions of incumbent firms are about the same, such that no one incumbent has a meaningful cost advantage. 
E) buyer switching costs are moderately low because of strong product differentiation among incumbent firms.

Question 13

A competitive environment where there is strong rivalry among sellers, low entry barriers, strong competition from substitute products, and considerable bargaining leverage on the part of both suppliers and customers

Accepted Answer

A) is competitively unattractive from the standpoint of earning good profits. 
B) offers little ability to build a sustainable competitive advantage. 
C) is highly conducive to achieving strong product differentiation and high customer loyalty to the company's brand. 
D) offers moderate to good prospects for making a reasonable profit and building a sustainable competitive advantage. 
E) requires that industry members have a strongly differentiated product offering in order to be profitable. 
A) is competitively unattractive from the standpoint of earning good profits. 
B) offers little ability to build a sustainable competitive advantage. 
C) is highly conducive to achieving strong product differentiation and high customer loyalty to the company's brand. 
D) offers moderate to good prospects for making a reasonable profit and building a sustainable competitive advantage. 
E) requires that industry members have a strongly differentiated product offering in order to be profitable.

Question 14

Which of the following is not a question asked to deduce a marketing-related key success factor?

Accepted Answer

A) What are the industry product R&D capabilities and expertise in product design? 
B) On what basis do buyers choose between the competing brands of sellers? 
C) What product attributes and service characteristics are crucial? 
D) What resources must a company have to be competitive? 
E) What shortcomings are almost certain to put a company at a significant disadvantage? 
A) What are the industry product R&D capabilities and expertise in product design? 
B) On what basis do buyers choose between the competing brands of sellers? 
C) What product attributes and service characteristics are crucial? 
D) What resources must a company have to be competitive? 
E) What shortcomings are almost certain to put a company at a significant disadvantage?

Question 15

Which of the following can aid company strategists in identifying key success factors in their industry?

Accepted Answer

A) global distribution capabilities of suppliers 
B) product attributes and service characteristics that buyers consider to be crucial 
C) low switching costs of buyers and suppliers 
D) accurate filling of buyer orders 
E) short delivery time capability 
A) global distribution capabilities of suppliers 
B) product attributes and service characteristics that buyers consider to be crucial 
C) low switching costs of buyers and suppliers 
D) accurate filling of buyer orders 
E) short delivery time capability

Question 16

Based on your analysis of the ease of entry into and the threat of substitute products and services in the pizza segment of the restaurant industry, your friends have now asked you to estimate the threat of retaliation by incumbent rivals in the industry. Explain your assessment of this threat.

Accepted Answer

The expected reaction of industry incumb

Question 17

In which of the following instances is rivalry among competing sellers not more intense?

Accepted Answer

A) when certain competitors are dissatisfied with their market position and make moves to bolster their standing 
B) when strong companies outside the industry acquire weak firms in the industry and launch aggressive moves to transform their newly acquired competitors into stronger market contenders 
C) when competitors are fairly equal in size and capability 
D) when the products of rivals are weakly differentiated, buyer switching costs are low, and market demand is growing slowly 
E) when there are vast numbers of small rivals so the impact of any one company's actions is spread thinly across all industry members 
A) when certain competitors are dissatisfied with their market position and make moves to bolster their standing 
B) when strong companies outside the industry acquire weak firms in the industry and launch aggressive moves to transform their newly acquired competitors into stronger market contenders 
C) when competitors are fairly equal in size and capability 
D) when the products of rivals are weakly differentiated, buyer switching costs are low, and market demand is growing slowly 
E) when there are vast numbers of small rivals so the impact of any one company's actions is spread thinly across all industry members

Question 18

Which of the following driving forces would have the least impact on the attractiveness of the automobile industry?

Accepted Answer

A) changes in the long-term industry growth rate 
B) entry or exit of major firms 
C) shifts in who buys the product and how the product is used 
D) changes in costs and efficiency 
E) regulatory influences and government policy changes 
A) changes in the long-term industry growth rate 
B) entry or exit of major firms 
C) shifts in who buys the product and how the product is used 
D) changes in costs and efficiency 
E) regulatory influences and government policy changes

Question 19

Whether buyer-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of

Accepted Answer

A) the speed with which general economic conditions and interest rates are changing. 
B) the extent to which buyers can exercise enough bargaining power to influence the conditions of sale in their favor and whether strategic partnerships between certain industry members can adversely affect other industry members. 
C) how many buyers purchase all of their requirements from a single seller versus how many purchase from several sellers. 
D) the number of buyers versus the number of sellers. 
E) whether industry members are spending more or less on advertising. 
A) the speed with which general economic conditions and interest rates are changing. 
B) the extent to which buyers can exercise enough bargaining power to influence the conditions of sale in their favor and whether strategic partnerships between certain industry members can adversely affect other industry members. 
C) how many buyers purchase all of their requirements from a single seller versus how many purchase from several sellers. 
D) the number of buyers versus the number of sellers. 
E) whether industry members are spending more or less on advertising.

Question 20

What makes the marketplace a competitive battlefield?

Accepted Answer

A) the race of industry members to build strong defenses against the industry's driving forces 
B) the constant rivalry of firms to strengthen their standing with buyers and win a competitive edge over rivals 
C) the ongoing race among rival sellers to have the highest-quality product 
D) the ongoing efforts of industry members to introduce new and improved products/services at a faster rate than their rivals 
E) the ongoing race among rivals to achieve the fastest rate of growth in revenues and profits 
A) the race of industry members to build strong defenses against the industry's driving forces 
B) the constant rivalry of firms to strengthen their standing with buyers and win a competitive edge over rivals 
C) the ongoing race among rival sellers to have the highest-quality product 
D) the ongoing efforts of industry members to introduce new and improved products/services at a faster rate than their rivals 
E) the ongoing race among rivals to achieve the fastest rate of growth in revenues and profits

The lower the user's switching costs, the

The extent to which firms are meeting objectives suggests they

When evaluating whether an industry's environment presents a company with an above-average profitability and an attractive business opportunity, it primarily involves

Determining how strong the threat of substitutes will be entails

Using the five forces model of competition to determine the character and strength of the competitive forces within a given industry involves

Which of the following is particularly pertinent in evaluating whether an industry presents a sufficiently attractive business opportunity?

What is the value of using Michael Porter's Framework for Competitor Analysis to observe competitors and trying to predict what moves they will make next?

Identify five factors that tend to weaken the intensity of competitive rivalry among an industry's member firms.

Which of the following is not a good example of a substitute product that triggers stronger competitive pressures?

As a rule, the collective impact of competitive pressures associated with the five competitive forces

Identify the five most impactful driving forces in the hospitality and lodging industry and briefly explain how each one can produce important changes in industry and competitive conditions.

Potential entrants are more likely to be deterred from actually entering an industry when

A competitive environment where there is strong rivalry among sellers, low entry barriers, strong competition from substitute products, and considerable bargaining leverage on the part of both suppliers and customers

Which of the following is not a question asked to deduce a marketing-related key success factor?

Which of the following can aid company strategists in identifying key success factors in their industry?

Based on your analysis of the ease of entry into and the threat of substitute products and services in the pizza segment of the restaurant industry, your friends have now asked you to estimate the threat of retaliation by incumbent rivals in the industry. Explain your assessment of this threat.

In which of the following instances is rivalry among competing sellers not more intense?

Which of the following driving forces would have the least impact on the attractiveness of the automobile industry?

Whether buyer-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of

What makes the marketplace a competitive battlefield?

What Is Strategy and Why Is It Important?

Charting a Companys Direction

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations

Corporate Culture and Leadership

Filters

Exam 3: Evaluating a Companys External Environment

The lower the user's switching costs, the

The extent to which firms are meeting objectives suggests they

When evaluating whether an industry's environment presents a company with an above-average profitability and an attractive business opportunity, it primarily involves

Determining how strong the threat of substitutes will be entails

Using the five forces model of competition to determine the character and strength of the competitive forces within a given industry involves

Which of the following is particularly pertinent in evaluating whether an industry presents a sufficiently attractive business opportunity?

What is the value of using Michael Porter's Framework for Competitor Analysis to observe competitors and trying to predict what moves they will make next?

Identify five factors that tend to weaken the intensity of competitive rivalry among an industry's member firms.

Which of the following is not a good example of a substitute product that triggers stronger competitive pressures?

As a rule, the collective impact of competitive pressures associated with the five competitive forces

Identify the five most impactful driving forces in the hospitality and lodging industry and briefly explain how each one can produce important changes in industry and competitive conditions.

Potential entrants are more likely to be deterred from actually entering an industry when

A competitive environment where there is strong rivalry among sellers, low entry barriers, strong competition from substitute products, and considerable bargaining leverage on the part of both suppliers and customers

Which of the following is not a question asked to deduce a marketing-related key success factor?

Which of the following can aid company strategists in identifying key success factors in their industry?

Based on your analysis of the ease of entry into and the threat of substitute products and services in the pizza segment of the restaurant industry, your friends have now asked you to estimate the threat of retaliation by incumbent rivals in the industry. Explain your assessment of this threat.

In which of the following instances is rivalry among competing sellers not more intense?

Which of the following driving forces would have the least impact on the attractiveness of the automobile industry?

Whether buyer-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of

What makes the marketplace a competitive battlefield?

What Is Strategy and Why Is It Important?

Charting a Companys Direction

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations

Corporate Culture and Leadership

Filters