Exam 2: External Analysis: The Identification of Opportunities and Threats

Using the industry life cycle model, explain how the threats and opportunities for existing fmns in an industry change over time.

Demand reaches total saturation in the stage of the industry life cycle.

Intense rivalry lowers prices and raises costs.

Which of the following is currently an embryonic industry?

The greater the exit barriers, the harder it is for companies to reduce capacity, and the greater the threat of severe price competition.

Mobility barriers:

Many beverage manufacturers are noticing that the sales for packaged water and fruit-based beverages is increasing compared to carbonated drinks as customers are increasingly becoming health conscious.This change in customer preferences can be attributed to which of the following factors of the macroenvironment?

The punctuated equilibrium view can be described as a freezing, but not unfreezing, process in an industry's life cycle.

Market segments are groups of:

Brand loyalty can be created by:

Growing demand tends to reduce rivalry because all companies can sell more without taking market share away from other companies.

An impact that the changing industry boundaries have had is that:

Suppliers in an industry are most powerful when:

A sector refers to a group of:

Entry barriers in embryonic industries tend to be based on: