Question 1

Not all buyers of an industry's product have equal degrees of bargaining power with sellers,because:

Accepted Answer

A)  sellers in an industry provide similar products and generally their cost structures are different because of competitive advantages in their operation. 
B)  some sellers may be less sensitive than others to price,quality,or service differences. 
C)  along the various stages of the value chain sellers are conducive to earning attractive profits. 
D)  the industry is a highly cohesive structure with limited fragmentation and few industry members. 
E)  All of these. 
A)  sellers in an industry provide similar products and generally their cost structures are different because of competitive advantages in their operation. 
B)  some sellers may be less sensitive than others to price,quality,or service differences. 
C)  along the various stages of the value chain sellers are conducive to earning attractive profits. 
D)  the industry is a highly cohesive structure with limited fragmentation and few industry members. 
E)  All of these.

Question 2

The rivalry among competing sellers tends to be less intense when:

Accepted Answer

A)  industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit sales. 
B)  buyer demand is weak and many sellers have excess capacity and/or inventory. 
C)  industry rivals are not particularly aggressive or active in making fresh moves to improve their market standing and business performance. 
D)  rivals have diverse strategies and objectives and are located in different countries. 
E)  rival sellers have weakly differentiated products. 
A)  industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit sales. 
B)  buyer demand is weak and many sellers have excess capacity and/or inventory. 
C)  industry rivals are not particularly aggressive or active in making fresh moves to improve their market standing and business performance. 
D)  rivals have diverse strategies and objectives and are located in different countries. 
E)  rival sellers have weakly differentiated products.

Question 3

The lower the price of product substitutes,the higher their quality and performance and 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 rival sellers experience strong bargaining power from both suppliers and influential customers. 
E)  less rival sellers experience weak 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 rival sellers experience strong bargaining power from both suppliers and influential customers. 
E)  less rival sellers experience weak bargaining power from both suppliers and influential customers.

Question 4

In which of the following circumstances are competitive pressures associated with the bargaining power of buyers NOT relatively strong?

Accepted Answer

A)  When buyer demand is growing rapidly 
B)  When buyers are relatively well-informed about sellers' products,prices,and costs 
C)  When buyers pose a credible threat to integrate backward into the product market of sellers 
D)  When sellers' products are weakly differentiated,making it easy for buyers to switch to competing brands 
E)  When buyers have considerable discretion over whether and when they purchase the product 
A)  When buyer demand is growing rapidly 
B)  When buyers are relatively well-informed about sellers' products,prices,and costs 
C)  When buyers pose a credible threat to integrate backward into the product market of sellers 
D)  When sellers' products are weakly differentiated,making it easy for buyers to switch to competing brands 
E)  When buyers have considerable discretion over whether and when they purchase the product

Question 5

Correctly diagnosing an industry's key success factors:

Accepted Answer

A)  points to those things that every firm in the industry needs to attend to in order to develop product propositions. 
B)  hints at the firm's ability to generate above-average profitability. 
C)  reveals the firms capabilities and resources are aligned with operating practices of industry participants. 
D)  raises a company's chances of crafting a sound strategy. 
E)  raises a company's sustainability dimensions and market characteristics in line with industry dynamics. 
A)  points to those things that every firm in the industry needs to attend to in order to develop product propositions. 
B)  hints at the firm's ability to generate above-average profitability. 
C)  reveals the firms capabilities and resources are aligned with operating practices of industry participants. 
D)  raises a company's chances of crafting a sound strategy. 
E)  raises a company's sustainability dimensions and market characteristics in line with industry dynamics.

Question 6

Identify three conditions that tend to make potential entry a strong competitive force.

Accepted Answer

The answer of Identify three conditions that tend to make...

Question 7

The best test of whether potential entry is a strong or weak competitive force is:

Accepted Answer

A)  the strength of buyer loyalty to existing brands. 
B)  whether the industry's driving forces make it harder or easier for new entrants to be successful. 
C)  whether the strategies of industry members are well-matched to the industry's key success factors. 
D)  whether there are any vacant spaces on the industry's strategic group map. 
E)  to ask if the industry's growth and profit prospects are strongly attractive to potential entry candidates. 
A)  the strength of buyer loyalty to existing brands. 
B)  whether the industry's driving forces make it harder or easier for new entrants to be successful. 
C)  whether the strategies of industry members are well-matched to the industry's key success factors. 
D)  whether there are any vacant spaces on the industry's strategic group map. 
E)  to ask if the industry's growth and profit prospects are strongly attractive to potential entry candidates.

Question 8

Supplier bargaining power is weaker when:

Accepted Answer

A)  good substitutes for supplier products/services exists. 
B)  the cost of switching from one supplier to another is high. 
C)  suppliers furnish a critical part or component. 
D)  buying firms are looking for suppliers with good just-in-time supply capabilities. 
E)  a few large suppliers are the primary sources of a particular item. 
A)  good substitutes for supplier products/services exists. 
B)  the cost of switching from one supplier to another is high. 
C)  suppliers furnish a critical part or component. 
D)  buying firms are looking for suppliers with good just-in-time supply capabilities. 
E)  a few large suppliers are the primary sources of a particular item.

Question 9

Identify and briefly explain any four of the factors that influence the strength or intensity of competitive rivalry among an industry's member firms.

Accepted Answer

The answer of Identify and briefly explain any four of...

Question 10

A competitive environment where there is weak to moderate rivalry among sellers,high entry barriers,weak competition from substitute products,and little bargaining leverage on the part of both suppliers and customers:

Accepted Answer

A)  lacks powerful driving forces. 
B)  gives each industry competitor the best potential for building sustainable competitive advantage over rival firms. 
C)  makes it challenging for industry members to compete successfully unless they can strongly differentiate their products. 
D)  is conducive to industry members earning attractive profits. 
E)  requires that industry members have low costs in order to be competitively successful. 
A)  lacks powerful driving forces. 
B)  gives each industry competitor the best potential for building sustainable competitive advantage over rival firms. 
C)  makes it challenging for industry members to compete successfully unless they can strongly differentiate their products. 
D)  is conducive to industry members earning attractive profits. 
E)  requires that industry members have low costs in order to be competitively successful.

Question 11

In analyzing the strength of competition among rival firms,an important consideration is:

Accepted Answer

A)  the potential for buyers to exercise strong bargaining power. 
B)  the diversity of competitors in terms of long-term direction objectives,strategies,and countries of origin. 
C)  the number of firms pursuing differentiation strategies versus the number pursuing low-cost leadership strategies and focus strategies. 
D)  the extent to which some rivals have more than two competitively valuable competencies or capabilities. 
E)  whether the industry is characterized by a strong learning/experience curve and whether the industry is composed of many or few strategic groups. 
A)  the potential for buyers to exercise strong bargaining power. 
B)  the diversity of competitors in terms of long-term direction objectives,strategies,and countries of origin. 
C)  the number of firms pursuing differentiation strategies versus the number pursuing low-cost leadership strategies and focus strategies. 
D)  the extent to which some rivals have more than two competitively valuable competencies or capabilities. 
E)  whether the industry is characterized by a strong learning/experience curve and whether the industry is composed of many or few strategic groups.

Question 12

Rivalry among competing sellers is generally more intense when:

Accepted Answer

A)  there are relatively few industry key success factors and rivals have highly differentiated products. 
B)  the industry's driving forces are strong and rivals have strongly differentiated products. 
C)  barriers to entry are moderately high and the pool of likely entry candidates is small. 
D)  rivals are active in making fresh moves to lower prices,introduce new products,increase promotional efforts and advertising,and otherwise gain sales and market share. 
E)  barriers to entry are high and buyer switching costs are high. 
A)  there are relatively few industry key success factors and rivals have highly differentiated products. 
B)  the industry's driving forces are strong and rivals have strongly differentiated products. 
C)  barriers to entry are moderately high and the pool of likely entry candidates is small. 
D)  rivals are active in making fresh moves to lower prices,introduce new products,increase promotional efforts and advertising,and otherwise gain sales and market share. 
E)  barriers to entry are high and buyer switching costs are high.

Question 13

Competing companies deploy whatever means necessary to strengthen market position,including all of the following EXCEPT:

Accepted Answer

A)  marketing tactics including special sales promotions such as introducing new or improved features or increasing the number of styles to provide greater product selection. 
B)  differentiating their products by offering better performance features than rivals. 
C)  improving innovation to increase product performance and quality. 
D)  making efforts to expand dealer networks. 
E)  reduce distribution capabilities and market presence. 
A)  marketing tactics including special sales promotions such as introducing new or improved features or increasing the number of styles to provide greater product selection. 
B)  differentiating their products by offering better performance features than rivals. 
C)  improving innovation to increase product performance and quality. 
D)  making efforts to expand dealer networks. 
E)  reduce distribution capabilities and market presence.

Question 14

Driving forces analysis helps managers identify whether:

Accepted Answer

A)  the collective impact of the driving forces will act to increase/decrease market demand,increase/decrease competition,and raise/lower industry profitability in the years ahead. 
B)  it will become more or less important to aim the company's strategy at being the industry's low-cost producer. 
C)  the driving forces will have a bigger impact on company profitability than competitive forces. 
D)  the industry is likely to become more or less vertically integrated and why. 
E)  competitive advantages are likely to grow or diminish in importance. 
A)  the collective impact of the driving forces will act to increase/decrease market demand,increase/decrease competition,and raise/lower industry profitability in the years ahead. 
B)  it will become more or less important to aim the company's strategy at being the industry's low-cost producer. 
C)  the driving forces will have a bigger impact on company profitability than competitive forces. 
D)  the industry is likely to become more or less vertically integrated and why. 
E)  competitive advantages are likely to grow or diminish in importance.

Question 15

What is the strategy-making value of identifying an industry's key success factors?

Accepted Answer

The answer of What is the strategy-making value of identifying...

Question 16

Collaborative relationships between particular sellers and buyers in an industry can represent a source of strong competitive pressure when:

Accepted Answer

A)  virtually all buyers have strong brand attachments and are highly brand loyal. 
B)  demand for the product is growing rapidly. 
C)  sales are made to buyer groups with either strong bargaining power or high sensitivity. 
D)  sellers are racing to add the latest and greatest performance features so as to attract the patronage of important or prestigious buyers. 
E)  buyers are very quality conscious. 
A)  virtually all buyers have strong brand attachments and are highly brand loyal. 
B)  demand for the product is growing rapidly. 
C)  sales are made to buyer groups with either strong bargaining power or high sensitivity. 
D)  sellers are racing to add the latest and greatest performance features so as to attract the patronage of important or prestigious buyers. 
E)  buyers are very quality conscious.

Question 17

In which of the following instances are industry members NOT subject to stronger competitive pressures from substitute products?

Accepted Answer

A)  The costs to buyers of switching over to the substitutes are low. 
B)  Buyers are dubious about using substitutes. 
C)  The quality and performance of the substitutes is well-matched to what buyers need to meet their requirements. 
D)  Buyer brand loyalty is weak. 
E)  Substitutes are readily available at competitive prices. 
A)  The costs to buyers of switching over to the substitutes are low. 
B)  Buyers are dubious about using substitutes. 
C)  The quality and performance of the substitutes is well-matched to what buyers need to meet their requirements. 
D)  Buyer brand loyalty is weak. 
E)  Substitutes are readily available at competitive prices.

Question 18

The concept of strategic groups is relevant to industry and competitive analysis because:

Accepted Answer

A)  firms in the same strategic groups are rarely close competitors-a firm's closest competitors are usually in distant strategic groups. 
B)  strategic group maps help identify how each competing firm is positioned and the relationship to their closest competitors. 
C)  competition grows in intensity as the number and diversity of the strategic groups in an industry increases. 
D)  the profit potential of firms in the same strategic group is usually very similar. 
E)  competitive pressures tend to be weaker within strategic groups than across strategic groups. 
A)  firms in the same strategic groups are rarely close competitors-a firm's closest competitors are usually in distant strategic groups. 
B)  strategic group maps help identify how each competing firm is positioned and the relationship to their closest competitors. 
C)  competition grows in intensity as the number and diversity of the strategic groups in an industry increases. 
D)  the profit potential of firms in the same strategic group is usually very similar. 
E)  competitive pressures tend to be weaker within strategic groups than across strategic groups.

Question 19

To succeed in predicting the next strategic moves and countermoves of close or key rivals,it is useful to consider such indicators as:

Accepted Answer

A)  a rival's current strategy,objectives,capabilities,and assumptions about itself and the industry. 
B)  a rival's market share,customer segmentation,business model,and product proposition. 
C)  a rival's appetite as an acquisition candidate. 
D)  a rival's geographic market,product offerings,and strategic grouping. 
E)  All of these. 
A)  a rival's current strategy,objectives,capabilities,and assumptions about itself and the industry. 
B)  a rival's market share,customer segmentation,business model,and product proposition. 
C)  a rival's appetite as an acquisition candidate. 
D)  a rival's geographic market,product offerings,and strategic grouping. 
E)  All of these.

Question 20

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.

Not all buyers of an industry's product have equal degrees of bargaining power with sellers,because:

The rivalry among competing sellers tends to be less intense when:

The lower the price of product substitutes,the higher their quality and performance and the lower the user's switching costs,the

In which of the following circumstances are competitive pressures associated with the bargaining power of buyers NOT relatively strong?

Correctly diagnosing an industry's key success factors:

Identify three conditions that tend to make potential entry a strong competitive force.

The best test of whether potential entry is a strong or weak competitive force is:

Supplier bargaining power is weaker when:

Identify and briefly explain any four of the factors that influence the strength or intensity of competitive rivalry among an industry's member firms.

A competitive environment where there is weak to moderate rivalry among sellers,high entry barriers,weak competition from substitute products,and little bargaining leverage on the part of both suppliers and customers:

In analyzing the strength of competition among rival firms,an important consideration is:

Rivalry among competing sellers is generally more intense when:

Competing companies deploy whatever means necessary to strengthen market position,including all of the following EXCEPT:

Driving forces analysis helps managers identify whether:

What is the strategy-making value of identifying an industry's key success factors?

Collaborative relationships between particular sellers and buyers in an industry can represent a source of strong competitive pressure when:

In which of the following instances are industry members NOT subject to stronger competitive pressures from substitute products?

The concept of strategic groups is relevant to industry and competitive analysis because:

To succeed in predicting the next strategic moves and countermoves of close or key rivals,it is useful to consider such indicators as:

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

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, and Strategy

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies: Which One to Employ

Strengthening a Companys Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

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Exam 3: Evaluating a Companys External Environment

Not all buyers of an industry's product have equal degrees of bargaining power with sellers,because:

The rivalry among competing sellers tends to be less intense when:

The lower the price of product substitutes,the higher their quality and performance and the lower the user's switching costs,the

In which of the following circumstances are competitive pressures associated with the bargaining power of buyers NOT relatively strong?

Correctly diagnosing an industry's key success factors:

Identify three conditions that tend to make potential entry a strong competitive force.

The best test of whether potential entry is a strong or weak competitive force is:

Supplier bargaining power is weaker when:

Identify and briefly explain any four of the factors that influence the strength or intensity of competitive rivalry among an industry's member firms.

A competitive environment where there is weak to moderate rivalry among sellers,high entry barriers,weak competition from substitute products,and little bargaining leverage on the part of both suppliers and customers:

In analyzing the strength of competition among rival firms,an important consideration is:

Rivalry among competing sellers is generally more intense when:

Competing companies deploy whatever means necessary to strengthen market position,including all of the following EXCEPT:

Driving forces analysis helps managers identify whether:

What is the strategy-making value of identifying an industry's key success factors?

Collaborative relationships between particular sellers and buyers in an industry can represent a source of strong competitive pressure when:

In which of the following instances are industry members NOT subject to stronger competitive pressures from substitute products?

The concept of strategic groups is relevant to industry and competitive analysis because:

To succeed in predicting the next strategic moves and countermoves of close or key rivals,it is useful to consider such indicators as:

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

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, and Strategy

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies: Which One to Employ

Strengthening a Companys Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

Filters