Exam 3: External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Given its size and industry influence,Walmart would be a powerful buyer.Which of the following is NOT an indication of Walmart's strength as a buyer?

A large textile manufacturer located in South Carolina had to exit the industry because it could no longer compete with firms from overseas.The company laid off hundreds of employees,its suppliers started to struggle,and several local establishments closed their doors.It can be said that the local economy in South Carolina was experiencing what?

A small-scale appliance manufacturer has been producing goods for a private label company for 25 years.This manufacturer has no brand image,a small production facility,and scarce capital resources.The company has made several strategic attempts to increase market share and create a nationally branded appliance market presence.So far,it has been unsuccessful.Why is this most likely so?

As natural monopolies are shrinking due to global governmental privatizations,another competitive landscape is emerging.Firms like Intel that have 80 percent market share in some markets would be called what?

Which of the following is NOT a major consideration of barriers to entry?

________ reveals which companies are in the strongest or weakest position relative to your company.

When firms that provide key raw materials to an industry can frequently negotiate for higher prices,the:

Competitive rivalry among firms in the same strategic group is generally:

One of the consequences of the five forces analysis is that a firm must ask itself what?

A firm's six PESTEL environmental forces include ______________.

Firms that compete within a strategic group rarely use similar competitive strategies.

The Five Forces model is primarily used for analysis of the industry's profit potential.What can we say about the relationship between the forces and the profits?

When there is pressure to innovate,advertising is key and improved service is important for competition,competitors are engaging in ______________ and prices will ________.

Industry convergence happens when previously unrelated industries begin to serve the same customer.

According to the SCP model,what is the relationship between firms and their industries?

Globalization has led to increased entry barriers.

According to the opening case about the Chinese startup Build Your Dreams (BYD),the ability to successfully enter and compete in the car industry demonstrates that a firm using new technology can circumvent many of the traditionally high entry barriers.

The profit potential for strategic groups within an industry is __________ between groups.

A firm can use its knowledge of the five forces to strengthen its competitive position through ___________.

Many Internet entrepreneurs have learned that it is difficult to beat the forces of perfect competition.In perfect competition,there are many small stores with largely commodity products and low entry barriers.Which industry has got caught up in the Internet bubble and has tried to join with online models,most of whom closed after a couple of years?