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

Select two firms in the automobile industry that would be in different strategic groups.Explain what is different about their groups.

Briefly explain the 'virtuous cycle' of complements between Microsoft and Intel as discussed in Strategy Highlight 3.2.

A firm's pricing power:

The worldwide car industry has had few new entrants in the past couple of decades due to very large entry barriers.How is BYD getting around these barriers?

The objective of Porter's five forces model is to:

What is the sixth force of industry attractiveness?

Agriculture is generally considered a perfect competition industry with largely commodity products.However,there is an aspect of the industry that can be classified as monopolistic competition with differentiated products and price premiums.Which part of the industry is it?

The five forces analysis is focused on factors that influence an industry's profitability potential.

Defend or refute this statement: "Strategic groups do not impact competitive rivalry within the industry".

An industry with three firms and a differentiated product is most likely a(n)________,while an industry with three thousand firms and a differentiated product is most likely a(n)________ industry.

Which of the main industry groups in the SCP model is described as having a few large firms,differentiated products,and high entry barriers?

In 1996,GM,Toyota,and Honda introduced electric vehicles into the California market.This was in response to a regulation passed by the state in 1990 requiring some percentage of zero-emissions vehicles from auto companies be sold in the state.When the regulation was rescinded in the late 1990s,all three firms pulled their electric vehicles out of the market.GM terminated its electric vehicle program,whereas Toyota and Honda used it to introduce hybrid cars only a few years later.Which of the following is NOT a valid conclusion to draw from this series of events?

Industry growth rates and even structure change over time.Give an example of an industry that consolidated in the past few years and how this would impact profitability.

The soft drink industry has been one of the most profitable industries for years.There are two key competitors,Coke and Pepsi,who compete on product innovation and lifestyle advertising.Additionally,barriers to entry are high and supplier power is weak.Michael Porter calls this industry:

Scientific improvements and innovations are examples of technological forces.

As noted in Strategy Highlight 3.1,UBS is a Swiss banking institution that provided tax savings to U.S.clients until the U.S.government took action against UBS.Which of the following is true?

Exit barriers are obstacles that determine how easily a firm can leave the industry.When exit barriers are high,what happens to industry attractiveness?

All of the following are aspects of sociocultural factors influencing industry attractiveness EXCEPT:

What is BYD using to avoid entry barriers upon entering the automotive industry?

The underlying industry structure has little effect on individual firms' competitive conduct.