Exam 4: Further Topics in Industry and Competitive Analysis

Strategic group analysis is primarily useful for:

The more similar are key success factors across the different segments of an industry,the more likely it is that the firms within that industry will specialize by segment.

The profitability of making inkjet cartridges depends critically upon their complementary relationship with between inkjet printers.

Joseph Schumpeter perceived competition among companies as:

To analyze the profit potential of different industry segments,we can use the same Porter five forces of competition framework that we use to analyze the profit potential of different industries.

The relationship between competition and cooperation can be described as follows:

Segmentation is a process through which:

In hypercompetitive markets,the quest for sustainable competitive advantage is the overwhelmingly important priority for firm strategy.

When products A and B are complements,the division of profit between the supplier of A and the supplier of B will depend upon which builds the stronger market position and is better able to reduce the value contributed by the other.

Winner-take-all industries,where the leading firm accounts for the great majority of the industry's total profit,are usually the result of:

Industries are the central arenas in which competition takes place.Disaggregating industries into segments and groups of firms add little to our understanding of competition.

The ability to predict a competitor's behavior is facilitated by the tendency for the managers within an industry to share common beliefs about their industry and about the key success factors within it.

Deterrence is effective when it imposes costs upon other players,but s costless for the initiating firm.

The producer of a complementary product can maximize its relative bargaining power by means of:

In a market where Firm A and Firm B are leading suppliers,if Firm A initiates a price cut,the likelihood that Firm B responds with an identical price cut will be greater:

The difference between barriers to entry and barriers to mobility is:

The prediction that hypercompetition makes competitive advantage temporary:

To divide an industry into segments it is always preferable to focus on the characteristics of different customers rather than the characteristics of different products.

The Schumpeterian view of competition emphasizes the role of innovation and entrepreneurship

The main use of industry segmentation analysis is to: