Exam 2: Evaluating a Firms External Environment

The threat of direct competition tends to be high when

What is a harvest strategy?

Jay Z recently started Tidal,an "artist friendly" streaming company.This would be an example of

The objective of divestment is to extract a firm from a declining industry.

________ are resources required to successfully compete in an industry.

In the structure-conduct-performance model,the term "structure" refers to industry structure,which can be measured by such factors as the number of competitors in an industry.

________ costs exist when customers make investments in order to use a firm's particular products or services.

The aging of the "baby boomer" generation in American society is an example of a demographic trend.

Which of the following is the best example of forward vertical integration?

BidBuy is the world's leading online auction company. When BidBuy was founded ten years ago it was the first online auction company, and it has been the leader since it was founded. Although there are other firms in the industry, BidBuy controls over 75% of the market in the United States, and three additional firms control another 20% of the U.S. market. One of the aspects of BidBuy that keeps users from changing to other online auction companies is the large user base BidBuy has built and a feedback rating system that allows buyers and sellers to rate their satisfaction with each other following each transaction. This allows users to build a reputation for honesty and trustworthiness. Sellers with a high feedback rating tend to receive more bids on their auctions and a higher price for their goods. To help facilitate payment transfers between buyers and sellers following successful online auctions, companies such as DollarDog have been founded, and these companies have facilitated growth for BidBuy. Having attained a 75% market share in the U.S., BidBuy has begun expanding internationally, opening its own sites in some countries and purchasing incumbents in others. In its international expansion, BidBuy has allowed its individual companies to customize their offerings according to the needs and desires of the countries in which they operate and when these companies are successful, BidBuy works to transfer these successful capabilities throughout the firm. -Factors such as BidBuy's feedback rating system that are valuable to the company's customers but which are not useful on other online auction sites are examples of

A firm's supplier poses a greater threat if the supplier's industry has a large number of firms,none of which dominate the supplying industry,than if the supplier's industry is dominated by a small number of firms.

Which type of competition is characterized by a small number of firms,homogeneous products and costly entry and exit?

________ are advantages that come to firms that make important strategic and technological decisions early in the development of an industry.

The threat of entry in an industry depends on the cost of entry,and the cost of entry,in turn,depends upon the existence and "height" of barriers to entry.

Firms pursuing a harvest strategy in a declining industry do not expect to remain in the industry over the long term.

The products or services provided by a firm's substitutes meet ________ customer needs in ________ ways as the product provided by the firm itself.

Which type of competition is characterized by a large number of firms,heterogeneous products and low cost of entry and exit?

Mature industries are characterized by

When activity in an economy is relatively low for a short period of time,the economy is said to be in a

Culture is largely the same across the world.