Exam 4: Further Topics in Industry and Competitive Analysis

The key implication of "hypercompetition" in business is that:

If administering deterrence is costly or unpleasant for the threatening party,then:

Game theory seeks to predict the outcome of competitive situations by modeling the interactive decisions by firms,

Empirical studies on hypercompetition show unanimously that industries are becoming increasingly turbulent and competitive advantage increasingly short-lived

The main usefulness of strategic group analysis is in analyzing interfirm profitability differences within an industry;it is less useful as a tool for describing the strategic positioning of firms within an industry.

The distinction between legitimate competitive intelligence and industrial espionage:

The key problem facing Nespresso in implementing a "razors and blades" strategy for its Nespresso system is that:

In the European airline industry,EasyJet,Baltic Air,WizzAir,and Ryanair:

To attempt to predict competitive behaviors,Porter suggests a four-step framework,where analysts must identify:

Barriers to mobility are:

The more variables that are deployed to segment a market,the more useful is the resulting segmentation likely to be.

The propensity for similar businesses to cluster in the same locality (e.g.IT companies in Silicon Valley,fashion houses in Milan)is evidence of the intensity of the competitive instincts that drive the owners of these businesses.

After arriving in Mexico in 1519,the destruction by Hernan Cortes of his own ships was a signal,in game theory terminology,of "commitment" for his troops to the conquest of the Aztec empire

A "prisoners' dilemma" situation in which a failure to cooperate leaves both parties worse off is just as likely in a multi-period game as in a single-period game.

"Profit pool mapping" describes a technique for:

A firm will choose to compete across multiple segments rather than specialize in a single segment if:

The relationship between commitment and strategic options may be best described as:

Empirical research shows that proportion of inter-firm differences in profitability that industry factors explain is:

The key insight from the "prisoners' dilemma" game is:

Industry segmentation is always horizontal-it is based upon the products an industry supplies and the customers to which they are supplied.The notion of vertical segmentation-segmenting an industry along its value chain is attractive in principle but impossible in practice.