Question 1

Identify and briefly describe five common barriers to entering an industry.

Accepted Answer

The answer of Identify and briefly describe five common barriers...

Question 2

The bargaining leverage of suppliers is greater when

Accepted Answer

A)  there are no good substitutes for the items being furnished by the suppliers and the number of suppliers is relatively small. 
B)  industry members incur low costs in switching their purchases from one supplier to another. 
C)  industry members purchase in large quantities and thus are important customers of the suppliers. 
D)  there is extensive seller-supplier collaboration. 
E)  the supplier industry is composed of a large number of relatively small suppliers. 
A)  there are no good substitutes for the items being furnished by the suppliers and the number of suppliers is relatively small. 
B)  industry members incur low costs in switching their purchases from one supplier to another. 
C)  industry members purchase in large quantities and thus are important customers of the suppliers. 
D)  there is extensive seller-supplier collaboration. 
E)  the supplier industry is composed of a large number of relatively small suppliers.

Question 3

Which of the following is not a factor to consider in identifying an industry's dominant economic features?

Accepted Answer

A)  Market size and growth rate 
B)  The extent of backward integration of buyer needs and requirements 
C)  Whether the products or services of rival firms are becoming more or less differentiated 
D)  Strength of driving forces and competitive forces 
E)  The pace of technological change, scale economies and experience curve effects, and product innovation 
A)  Market size and growth rate 
B)  The extent of backward integration of buyer needs and requirements 
C)  Whether the products or services of rival firms are becoming more or less differentiated 
D)  Strength of driving forces and competitive forces 
E)  The pace of technological change, scale economies and experience curve effects, and product innovation

Question 4

What are the five competitive forces that comprise the five-forces model of competition?

Accepted Answer

The answer of What are the five competitive forces that...

Question 5

With the aid of a strategic group map,one can

Accepted Answer

A)  readily identify the entry and exit barriers for each strategic group. 
B)  pinpoint precisely which firms are in profitable strategic groups and which are not. 
C)  identify which competitive forces are strong and which are weak. 
D)  measure accurately whether across-group rivalry is stronger than within-group rivalry or vice versa. 
E)  often learn to what extent industry driving forces and competitive pressures favor some companies or groups and hurt others. 
A)  readily identify the entry and exit barriers for each strategic group. 
B)  pinpoint precisely which firms are in profitable strategic groups and which are not. 
C)  identify which competitive forces are strong and which are weak. 
D)  measure accurately whether across-group rivalry is stronger than within-group rivalry or vice versa. 
E)  often learn to what extent industry driving forces and competitive pressures favor some companies or groups and hurt others.

Question 6

Buyers are in position to exert strong bargaining power in dealing with sellers when

Accepted Answer

A)  their costs to switch to competing brands or to substitute products are relatively high. 
B)  a particular seller's product delivers quality or performance that is very important to the buyer and is not matched by other brands. 
C)  they buy the product infrequently or in small quantities and are not particularly well-informed about sellers' products, prices, and costs. 
D)  buyer demand is growing rapidly. 
E)  the number of buyers is small or when a customer is particularly important to a seller. 
A)  their costs to switch to competing brands or to substitute products are relatively high. 
B)  a particular seller's product delivers quality or performance that is very important to the buyer and is not matched by other brands. 
C)  they buy the product infrequently or in small quantities and are not particularly well-informed about sellers' products, prices, and costs. 
D)  buyer demand is growing rapidly. 
E)  the number of buyers is small or when a customer is particularly important to a seller.

Question 7

Which one of the following increases the competitive pressures associated with the threat of entry?

Accepted Answer

A)  When incumbent firms are likely to launch competitive initiatives to strongly contest the entry of newcomers 
B)  When buyers have a high degree of loyalty to the brands and product offerings of existing industry members 
C)  When buyer demand for the product is growing fairly slowly 
D)  When few outsiders have the expertise and resources to hurdle whatever entry barriers exist 
E)  When newcomers can expect to earn attractive profits 
A)  When incumbent firms are likely to launch competitive initiatives to strongly contest the entry of newcomers 
B)  When buyers have a high degree of loyalty to the brands and product offerings of existing industry members 
C)  When buyer demand for the product is growing fairly slowly 
D)  When few outsiders have the expertise and resources to hurdle whatever entry barriers exist 
E)  When newcomers can expect to earn attractive profits

Question 8

Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?

Accepted Answer

A)  Changes in who buys the product and how they use it and changes in the long-term industry growth rate 
B)  Entry or exit of major firms, product innovation, and marketing innovation 
C)  Increases in the economic power and bargaining leverage of customers and suppliers, growing supplier-seller collaboration, and growing buyer-seller collaboration 
D)  Growing buyer preferences for differentiated products instead of mostly standardized or identical products 
E)  Changes in economies of scale and experience curve effects brought on by changes in manufacturing technology and new Internet capabilities 
A)  Changes in who buys the product and how they use it and changes in the long-term industry growth rate 
B)  Entry or exit of major firms, product innovation, and marketing innovation 
C)  Increases in the economic power and bargaining leverage of customers and suppliers, growing supplier-seller collaboration, and growing buyer-seller collaboration 
D)  Growing buyer preferences for differentiated products instead of mostly standardized or identical products 
E)  Changes in economies of scale and experience curve effects brought on by changes in manufacturing technology and new Internet capabilities

Question 9

Strategic group mapping is a technique for displaying

Accepted Answer

A)  how many rivals are pursuing each type of strategy. 
B)  which companies have the biggest market share and who the industry leader really is. 
C)  the different market or competitive positions that rival firms occupy in an industry and identifying each rival's closest competitors. 
D)  which companies have the highest degrees of brand loyalty. 
E)  which companies have failing business models. 
A)  how many rivals are pursuing each type of strategy. 
B)  which companies have the biggest market share and who the industry leader really is. 
C)  the different market or competitive positions that rival firms occupy in an industry and identifying each rival's closest competitors. 
D)  which companies have the highest degrees of brand loyalty. 
E)  which companies have failing business models.

Question 10

A competitive environment where there is strong rivalry among sellers,low entry barriers,strong competition from substitute products,and considerable bargaining leverage on the part of both suppliers and customers

Accepted Answer

A)  is competitively unattractive from the standpoint of earning good profits. 
B)  offers little ability to build a sustainable competitive advantage. 
C)  is highly conducive to achieving strong product differentiation and high customer loyalty to the company's brand. 
D)  offers moderate to good prospects for making a reasonable profit and building a sustainable competitive advantage. 
E)  requires that industry members have a strongly differentiated product offering in order to be profitable. 
A)  is competitively unattractive from the standpoint of earning good profits. 
B)  offers little ability to build a sustainable competitive advantage. 
C)  is highly conducive to achieving strong product differentiation and high customer loyalty to the company's brand. 
D)  offers moderate to good prospects for making a reasonable profit and building a sustainable competitive advantage. 
E)  requires that industry members have a strongly differentiated product offering in order to be profitable.

Question 11

Can an industry be attractive to one company and unattractive to another company? Why or why not?

Accepted Answer

The answer of Can an industry be attractive to one...

Question 12

Which one of the following is not a common type of driving force?

Accepted Answer

A)  Reductions in uncertainty and business risk 
B)  Changing societal concerns, attitudes, and lifestyles 
C)  Diffusion of technical know-how across more companies and more countries 
D)  Increasing efforts on the part of industry members to collaborate closely with their suppliers 
E)  Technological change and manufacturing process innovation 
A)  Reductions in uncertainty and business risk 
B)  Changing societal concerns, attitudes, and lifestyles 
C)  Diffusion of technical know-how across more companies and more countries 
D)  Increasing efforts on the part of industry members to collaborate closely with their suppliers 
E)  Technological change and manufacturing process innovation

Question 13

Which of the following are most unlikely to qualify as driving forces?

Accepted Answer

A)  Changes in the long-term industry growth rate, the entry or exit of major firms, and changes in cost and efficiency 
B)  Increasing globalization of the industry and product innovation 
C)  New Internet technology applications, new government regulations, and significant changes in government policy toward the industry 
D)  Mounting competition from substitutes and increasing efforts to collaborate with suppliers via strategic alliances 
E)  Marketing innovations and changes in who buys the industry's product and how they use it 
A)  Changes in the long-term industry growth rate, the entry or exit of major firms, and changes in cost and efficiency 
B)  Increasing globalization of the industry and product innovation 
C)  New Internet technology applications, new government regulations, and significant changes in government policy toward the industry 
D)  Mounting competition from substitutes and increasing efforts to collaborate with suppliers via strategic alliances 
E)  Marketing innovations and changes in who buys the industry's product and how they use it

Question 14

Typically,the weakest of the five competitive forces in an industry is/are:

Accepted Answer

A)  the threat posed by potential new entrants. 
B)  the bargaining power and leverage that suppliers are able to exercise. 
C)  the competitive pressures that stem from the ready availability of attractively-priced substitute products. 
D)  the bargaining power and leverage that buyers are able to exercise. 
E)  None of these is typically weakest. 
A)  the threat posed by potential new entrants. 
B)  the bargaining power and leverage that suppliers are able to exercise. 
C)  the competitive pressures that stem from the ready availability of attractively-priced substitute products. 
D)  the bargaining power and leverage that buyers are able to exercise. 
E)  None of these is typically weakest.

Question 15

The "driving forces" in an industry

Accepted Answer

A)  are usually triggered by changing technology or stronger learning/experience curve effects. 
B)  usually are spawned by growing demand for the product, the outbreak of price-cutting, and big reductions in entry barriers. 
C)  are major underlying causes of changing industry and competitive conditions and have the biggest influences in reshaping the industry landscape and altering competitive conditions. 
D)  appear when an industry begins to mature but are seldom present during early stages of the industry life-cycle. 
E)  are usually triggered by shifting buyer needs and expectations or by the appearance of new substitute products. 
A)  are usually triggered by changing technology or stronger learning/experience curve effects. 
B)  usually are spawned by growing demand for the product, the outbreak of price-cutting, and big reductions in entry barriers. 
C)  are major underlying causes of changing industry and competitive conditions and have the biggest influences in reshaping the industry landscape and altering competitive conditions. 
D)  appear when an industry begins to mature but are seldom present during early stages of the industry life-cycle. 
E)  are usually triggered by shifting buyer needs and expectations or by the appearance of new substitute products.

Question 16

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 17

What is the analytical value of studying competitors and trying to predict what moves rivals will make next?

Accepted Answer

The answer of What is the analytical value of studying...

Question 18

One of the things that can be gleaned from a strategic group map of industry rivals is

Accepted Answer

A)  which rivals have been in business longer and thus have greater access to experience curve effects. 
B)  which rivals have newer manufacturing facilities. 
C)  which strategic groups have the highest profit margins and the highest customer switching costs. 
D)  whether profit prospects vary among strategic groups due to strengths and weaknesses in their respective market positions on the map (perhaps because competitive pressures are acting to favor some strategic groups and to disadvantage other groups). 
E)  which strategic groups are currently viewed as the most prestigious by customers and which companies are being shunned by customers because of high prices and relatively low product quality. 
A)  which rivals have been in business longer and thus have greater access to experience curve effects. 
B)  which rivals have newer manufacturing facilities. 
C)  which strategic groups have the highest profit margins and the highest customer switching costs. 
D)  whether profit prospects vary among strategic groups due to strengths and weaknesses in their respective market positions on the map (perhaps because competitive pressures are acting to favor some strategic groups and to disadvantage other groups). 
E)  which strategic groups are currently viewed as the most prestigious by customers and which companies are being shunned by customers because of high prices and relatively low product quality.

Question 19

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 major 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 major 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 20

Identify and briefly discuss any three of the factors that influence the bargaining strength and leverage of buyers.

Accepted Answer

The answer of Identify and briefly discuss any three of...

Identify and briefly describe five common barriers to entering an industry.

The bargaining leverage of suppliers is greater when

Which of the following is not a factor to consider in identifying an industry's dominant economic features?

What are the five competitive forces that comprise the five-forces model of competition?

With the aid of a strategic group map,one can

Buyers are in position to exert strong bargaining power in dealing with sellers when

Which one of the following increases the competitive pressures associated with the threat of entry?

Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?

Strategic group mapping is a technique for displaying

A competitive environment where there is strong rivalry among sellers,low entry barriers,strong competition from substitute products,and considerable bargaining leverage on the part of both suppliers and customers

Can an industry be attractive to one company and unattractive to another company? Why or why not?

Which one of the following is not a common type of driving force?

Which of the following are most unlikely to qualify as driving forces?

Typically,the weakest of the five competitive forces in an industry is/are:

The "driving forces" in an industry

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

What is the analytical value of studying competitors and trying to predict what moves rivals will make next?

One of the things that can be gleaned from a strategic group map of industry rivals is

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

Identify and briefly discuss any three of the factors that influence the bargaining strength and leverage of buyers.

What Is Strategy and Why Is It Important

Charting a Companys Direction: Vision and 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 Operation

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

Identify and briefly describe five common barriers to entering an industry.

The bargaining leverage of suppliers is greater when

Which of the following is not a factor to consider in identifying an industry's dominant economic features?

What are the five competitive forces that comprise the five-forces model of competition?

With the aid of a strategic group map,one can

Buyers are in position to exert strong bargaining power in dealing with sellers when

Which one of the following increases the competitive pressures associated with the threat of entry?

Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?

Strategic group mapping is a technique for displaying

A competitive environment where there is strong rivalry among sellers,low entry barriers,strong competition from substitute products,and considerable bargaining leverage on the part of both suppliers and customers

Can an industry be attractive to one company and unattractive to another company? Why or why not?

Which one of the following is not a common type of driving force?

Which of the following are most unlikely to qualify as driving forces?

Typically,the weakest of the five competitive forces in an industry is/are:

The "driving forces" in an industry

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

What is the analytical value of studying competitors and trying to predict what moves rivals will make next?

One of the things that can be gleaned from a strategic group map of industry rivals is

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

Identify and briefly discuss any three of the factors that influence the bargaining strength and leverage of buyers.

What Is Strategy and Why Is It Important

Charting a Companys Direction: Vision and 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 Operation

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