Exam 2: Analysis of the External Environment: Opportunities and Threats

A product that is fundamentally different yet serves the same function or purpose as another product best defines the term _____.

The computers of Main Frame Inc.,a computer company,are manufactured with in-built operating software.The users of this software have avoided using computers manufactured by other companies because that would entail converting their data to the other software.Also,they would have to get used to working smoothly with the other software.From this scenario,we can infer that:

The residents of the town of Segonon have initiated a campaign to stop the production of aerated beverages by Sip Drink Inc.The community members of Segonon stated that these beverages are causing loss of memory,nausea,and tiredness among the children who consume them regularly,and thus,have urged that the company should be shut down.The community's reaction to Sip Drink's beverages illustrates a _____.

_____ can be most accurately defined as conditions in the competitive environment that endanger the profitability of a firm.

Which of the following statements is true about rivalry?

Pancake Platter Inc.opens a new breakfast deli in the small town of Lakeville.It makes a lot of profit during its first year because it is the only deli in the area.Customers choose to have breakfast at this deli because their only other options for availing this type of service would be to travel several miles to the next town.This scenario best illustrates _____.

A firm that provides products that are inputs to another firm's production process is known as a(n)_____.

CharmingBells Inc.has been running into a loss gradually,but the board of directors are reluctant to shut the company down because it has invested millions of dollars' worth of equipment which can only be used in that industry.Moreover,the people in CharmingBells Inc.have become emotionally attached to the company and do not want the company completely shut down.This scenario best illustrates _____.

Jupiter Bank was one of the first banks to adopt intelligent imaging that helps in classifying,storing,and retrieval of data.It was also among the first to practice virtual banking and transfer data electronically.As such,Jupiter Bank was an early adopter of these new and faster techniques of banking.This helped the bank to gain a large market share which consequently enabled it to generate huge profits.Jupiter Bank yielded such profits because it paid importance to _____.

The airline industry is a profitable industry.The firms in this industry create barriers to entry through patents and regulations in order to reduce the threat of new entrants.It also minimizes the threat of substitutes while keeping rivalry to a minimum.The airline industry can be best categorized as a(n):

Zenith Corp.,a bag company,produced a lot of high-end leather bags than could be sold in the market for a year.The leather bags eventually wore out and were not fit to be sold,thus causing huge losses for that year.Which of the following did Zenith Corp.most probably experience during that year?

Which of the following statements is true of standardization of products?

OneTick Shop Inc.experienced a loss of finances in the small town of Brightland as a lot of people from the town moved to bigger cities in search of jobs.This resulted in a loss of both returning as well as new customers.This scenario primarily reflects _____.

Products that can be used in tandem with those from another industry best define the term _____.

SevenCloud Inc.,a soft drink company,provided service to fair amount of customers for a whole year until a new company called Sparkle Inc.came up.Sparkle provided flavored water as a new product in the beverage market.Customers were eager to try out this new product and purchased it because they believed that it a better substitute for aerated beverages.SevenCloud was afraid that if the trend continued,it would soon run the risk of going out of business.In this scenario,which of the following did SevenCloud Inc.experience?

Define switching costs and the forces that it takes into consideration.

Barriers that help keep firms using the same supplier or buyer by imposing extra costs for substituting suppliers or buyers are known as _____.

The companies LaceThings Inc.and BellePrints Corp.sell the same product.They constantly try to outdo each other in terms of resources,price,and customer satisfaction.The companies try to outperform each other in order to gain customer loyalty and generate more sales.This scenario is an example of _____.

Which of the following statements is true about customer needs?

GetYoung Inc.,a cosmetic company,recently launched a beauty bar soap that claims to soften the users' skin,giving it a natural glow,and also make them look up to 5 years younger.A lot of women eagerly tried out this soap and received positive results and thus encouraged their friends to try out the soap.GetYoung Inc.gained profits very fast through this word-of-mouth advertising.This scenario best illustrates _____.