Exam 4: Tools for Environment Analysis

New entrants who are diversifying from outside an industry are not always at a cost disadvantage.

Competitive cooperation is considered illegal in many jurisdictions.

In industries with high barriers to exit, competitive rivalry is

The primary activities of an organization's value chain often include

Substitute products reduce profitability by

Suppliers who provide a differentiated product may have power if they

Network effects exist when the likelihood of consumers purchasing a product increases with volume.

Large inventories and order backlogs reduce competitive pressures.

An analysis of the environment in which an organization operates is also known as

High switching costs are considered an example of

In Porter's view, strategy in industries dominated by internet technologies is fundamentally different from strategy in other industries.

The key challenge for global firms lies in managing the tradeoff between global integration and local responsiveness.

Firms competing in the same industry will have identical value chains.

The impact of changes in social forces on an industry occurs over a relatively long period of time.

The likelihood of a competitive reaction to a firm's strategy is higher in an industry

Willingness to pay doesn't apply when the product or service is undifferentiated.

The bargaining power of suppliers can negatively impact industry profitability by

Analytical frameworks have a tendency to add complexity to the evaluation of an industry.

It is relatively inexpensive to establish a market presence in an industry with strong product differentiation.

The likelihood of superior performance for firms in an industry where the competitive forces are weak is high.