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

Beans Inc.operates in a perfectly competitive agricultural industry.Classica Apparel Inc., in contrast, operates in a monopolistically competitive industry.Keeping this information in mind, which of the following statements is true?

Which of the following statements accurately brings out the difference between monopolistic competition and an oligopoly?

When is the bargaining power of buyers high?

List the five macroeconomic factors that can affect a firm's strategy.

Mention some of the recent technological innovations in the U.S.service industry.

Demand for traditional fast-food providers such as McDonald's, Burger King, and Wendy's has been on a decline in recent years.Consumers have become more health conscious and demand has shifted to alternative restaurants like Subway, Chick-fil-A, and Chipotle.Attempts by McDonald's and Wendy's to steal customers from one another include frequent discounting tactics such as dollar menus.Such competitive actions are indicative of _____.

Curry Rush is a premium Asian restaurant chain that differentiates itself from a large number of competitors by providing exclusively organic Vietnamese cuisine.It has some pricing power because it provides differentiated products and therefore, has some entry barriers in place.In this scenario, Curry Rush is most likely operating in a(n)_____.

What is meant by near monopolies?

Competitive rivalry based solely on _____ is destructive to firms as it transfers most of the value created in the industry to the customers.

Which of the following do the sociocultural forces in a firm's external environment best represent?

First Ledger Inc., an auditing company, replaced its existing accounting software with new accounting software from another supplier.Since the new software has different features and abilities, First Ledger Inc.has had to spend $10,000 on training its employees to use it.In this scenario, $10,000 represents First Ledger Inc.'s _____.

In regard to any of the five forces that shape competition, it is important to note that their relative strengths are context-dependent.Elaborate on this statement with the help of a real world example.

Earlier, the travel industry was controlled by a few large travel companies that booked holidays, air tickets, bus tickets, and hotels for their customers.However, with the emergence of the Internet, smaller travel agencies started mushrooming in the industry and customers started making their own reservations.Which of the following can be inferred from this information?

Samsung and Google cooperate as complementors to compete against Apple's strong position in the mobile device industry, while at the same time Samsung and Google are increasingly becoming competitive with one another.This scenario best illustrates the process of:

In the aircraft manufacturing industry, at least for large commercial jets, Boeing and Airbus are the only competitors.There is not a significant threat of entry because:

A firm's strategic position is likely to be strong when:

Balmia Ammunition Inc., a firm controlled and managed by the government of Balmia, is the only company that has the license to produce defense arms in the country.Which of the following industry competitive structures does this best illustrate?

Which of the following is a drawback of Porter's five forces model?

What is a natural monopoly? Provide a real world example.

When companies that manufacture shipping containers want to buy iron ore, the purchase decision is solely based on price.This is because there are a large number of sellers in the iron ore industry, and iron ore is a highly undifferentiated commodity.Which of the following industry competitive structures does the iron ore industry best illustrate?