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

A company is best described as a _____ to an existing company if customers value the existing company's product or service offering more when they are able to combine it with the other company's product or service.

In the luxury cruise industry,the small cruise lines Tropics Inc.and Sunset Inc.merged to form TropicalSunset Inc.After the merge,the competition between TropicalSunset Inc.and the two mega cruise lines,Pacifico and West Winds,has increased significantly.Which of the following statements best explains why this happened?

SooGood Inc.produces a dip that goes extremely well with Crunchy Potato Chips Inc.SooGood Inc.,therefore,is a _____ of Crunchy.

In the smartphone industry,Google is a complementor to Samsung.Which of the following statements best explains why this is true?

A fragmented industry is made into a consolidated industry through

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

The relative bargaining power of suppliers is high when

Shield Autos Inc.has newly launched a luxury car into the European market.Which of the following would most likely not be a complement to the car?

While Burger Cult Inc.operates in a monopolistically competitive industry,Citizen Telecom Inc.operates in a monopoly.Keeping this information in mind,which of the following statements is most likely true?

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

In a firm's external environment,_____ primarily capture population characteristics related to age,gender,family size,ethnicity,sexual orientation,religion,and socioeconomic class.

Which of the following is an implication of low interest rates?

Home Savings,Good Deals,Hank's Store,and King Bargains are all departmental stores that compete for advantage against each other through everyday low-pricing and discounts on bulk purchases.All four stores cater to the needs of highly price-sensitive customers.Thus,together Home Savings,Good Deals,Hank's Store,and King Bargains form a

A strategic group will typically include

Due to economic regression in United Filipia,the profitability of the large conglomerate Blue Wing Products Inc.(BWP)was poor.An analysis of the company's business showed that the company could become profitable if it divested a few strategic business units under its banner.From which of the following businesses would BWP find it most easy to exit?

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

How do low interest rates affect a business?

A new company named Far Reach Inc.entered the radio retail business.In response,two incumbent radio retailers,Smooth Waves and Clear Signal,lowered the cost of their travel alarm radios and long-distance radios.Also,they spent more money to improve these radios.By doing this,Smooth Waves and Clear Signal

Corner Market Inc.is a supermarket chain.Due to strong competition from other stores in the industry,Corner Market has aggressively used branding,pricing,and superior customer service to uniquely position itself in the market.As a result,the supermarket chain has been able to differentiate itself from its competitors and sell its products at higher prices.Which of the following industry competitive structures does this scenario best illustrate?

The government of Filvia has mandated that the standard minimum wage in the country be increased to $8,000 per year.This has ensured that all firms in the country pay their employees at least $8,000 per year,which has brought about a higher standard of living for the people of Filvia.Which of the following factors in a firm's general environment does this mandate best indicate?