Question 1

The state of competition in an industry is a function of

Accepted Answer

A)  the competitive pressures associated with rivalry among competing sellers to attract customers. 
B)  competitive pressures coming from the attempts of companies in other industries attempting to win buyers over to their substitute products. 
C)  competitive pressures associated with the threat of new entrants into the marketplace. 
D)  competitive pressures associated with the bargaining power of suppliers and customers. 
E)  All of these 
A)  the competitive pressures associated with rivalry among competing sellers to attract customers. 
B)  competitive pressures coming from the attempts of companies in other industries attempting to win buyers over to their substitute products. 
C)  competitive pressures associated with the threat of new entrants into the marketplace. 
D)  competitive pressures associated with the bargaining power of suppliers and customers. 
E)  All of these E

Question 2

Which of the following is not an appropriate guideline for developing a strategic group map for a given industry?

Accepted Answer

A)  The variables chosen as axes for the map should indicate big differences in how rivals have positioned themselves to compete in the marketplace. 
B)  The variables chosen as axes for the map can be quantitative,qualitative,or discrete and defined in terms of distinct classes and combinations. 
C)  The variables chosen as axes for the map should be highly correlated. 
D)  Several maps should be drawn if more than one pair of variables can help illuminate differences in the competitive positioning of industry members. 
E)  The sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group. 
A)  The variables chosen as axes for the map should indicate big differences in how rivals have positioned themselves to compete in the marketplace. 
B)  The variables chosen as axes for the map can be quantitative,qualitative,or discrete and defined in terms of distinct classes and combinations. 
C)  The variables chosen as axes for the map should be highly correlated. 
D)  Several maps should be drawn if more than one pair of variables can help illuminate differences in the competitive positioning of industry members. 
E)  The sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group. C

Question 3

The rivalry among competing firms tends to be more intense when

Accepted Answer

A)  demand for the product is growing slowly,one or maybe several industry members become dissatisfied with their market position,buyers have low switching costs,and when strong companies outside the industry acquire weak firms in the industry and launch aggressive moves to build market share. 
B)  the products/services of rival sellers are strongly differentiated and buyer demand is strong. 
C)  rivals are relatively content with their market position. 
D)  there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members. 
E)  there are fewer firms in the industry that have unequal market shares. 
A)  demand for the product is growing slowly,one or maybe several industry members become dissatisfied with their market position,buyers have low switching costs,and when strong companies outside the industry acquire weak firms in the industry and launch aggressive moves to build market share. 
B)  the products/services of rival sellers are strongly differentiated and buyer demand is strong. 
C)  rivals are relatively content with their market position. 
D)  there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members. 
E)  there are fewer firms in the industry that have unequal market shares. A

Question 4

The nature and strength of the competitive forces that prevail in an industry is generally a joint product of the

Accepted Answer

A)  pressures associated with rivalry among sellers to attract buyer patronage. 
B)  threat that firms outside the industry will decide to enter the market. 
C)  attempts of companies in other industries to win buyers over to their own substitute products. 
D)  competitive pressures stemming from the bargaining power of both suppliers and buyers. 
E)  All of these. 
A)  pressures associated with rivalry among sellers to attract buyer patronage. 
B)  threat that firms outside the industry will decide to enter the market. 
C)  attempts of companies in other industries to win buyers over to their own substitute products. 
D)  competitive pressures stemming from the bargaining power of both suppliers and buyers. 
E)  All of these.

Question 5

Identify and briefly discuss any three of the factors that influence the bargaining strength and leverage of buyers.

Accepted Answer

The answer of Identify and briefly discuss any three of...

Question 6

Identify at least five common driving forces and briefly explain how each one can produce important changes in industry and competitive conditions.

Accepted Answer

The answer of Identify at least five common driving forces...

Question 7

Which of the following is not a good example of a marketing-related key success factor?

Accepted Answer

A)  High utilization of fixed assets 
B)  A well-known and well-respected brand name 
C)  Breadth of product line and product selection 
D)  Clever advertising 
E)  Courteous,personalized customer service 
A)  High utilization of fixed assets 
B)  A well-known and well-respected brand name 
C)  Breadth of product line and product selection 
D)  Clever advertising 
E)  Courteous,personalized customer service

Question 8

Just how strong the competitive pressures are from substitute products depends on

Accepted Answer

A)  whether the available substitutes are strongly or weakly differentiated and whether buyers make purchases frequently or infrequently. 
B)  whether attractively priced substitutes are readily available and the ease with which buyers can switch to substitutes. 
C)  whether the available substitutes are products or services. 
D)  whether the producers of substitutes have ample budgets for new product R&D. 
E)  the speed with which buyer needs and expectations are changing. 
A)  whether the available substitutes are strongly or weakly differentiated and whether buyers make purchases frequently or infrequently. 
B)  whether attractively priced substitutes are readily available and the ease with which buyers can switch to substitutes. 
C)  whether the available substitutes are products or services. 
D)  whether the producers of substitutes have ample budgets for new product R&D. 
E)  the speed with which buyer needs and expectations are changing.

Question 9

The rivalry among competing sellers tends to be less intense when

Accepted Answer

A)  industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit sales. 
B)  buyer demand is weak and many sellers have excess capacity and/or inventory. 
C)  industry rivals are not particularly aggressive in drawing sales and market share away from rivals. 
D)  rivals have diverse strategies and objectives and are located in different countries. 
E)  rival sellers have weakly differentiated products. 
A)  industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit sales. 
B)  buyer demand is weak and many sellers have excess capacity and/or inventory. 
C)  industry rivals are not particularly aggressive in drawing sales and market share away from rivals. 
D)  rivals have diverse strategies and objectives and are located in different countries. 
E)  rival sellers have weakly differentiated products.

Question 10

Identify and briefly explain any four of the factors that influence the strength or intensity of competitive rivalry among an industry's member firms.

Accepted Answer

The answer of Identify and briefly explain any four of...

Question 11

The "driving forces" in an industry

Accepted Answer

A)  are usually triggered by changing technology or stronger learning/experience curve effects. 
B)  usually are spawned by growing demand for the product,the outbreak of price-cutting,and big reductions in entry barriers. 
C)  are major underlying causes of change in industry and competitive conditions and have the biggest influences in reshaping the industry landscape and altering competitive conditions. 
D)  appear when an industry begins to mature but are seldom present during early stages of the industry life cycle. 
E)  are usually triggered by shifting buyer needs and expectations or by the appearance of new substitute products. 
A)  are usually triggered by changing technology or stronger learning/experience curve effects. 
B)  usually are spawned by growing demand for the product,the outbreak of price-cutting,and big reductions in entry barriers. 
C)  are major underlying causes of change in industry and competitive conditions and have the biggest influences in reshaping the industry landscape and altering competitive conditions. 
D)  appear when an industry begins to mature but are seldom present during early stages of the industry life cycle. 
E)  are usually triggered by shifting buyer needs and expectations or by the appearance of new substitute products.

Question 12

Evaluating whether an industry presents a sufficiently attractive business opportunity usually does not involve a consideration of which of the following factors?

Accepted Answer

A)  The industry's growth potential 
B)  Whether competitive pressures will likely grow stronger or weaker 
C)  Whether the industry's future profitability will be favorably or unfavorably affected by the prevailing driving forces 
D)  The company's competitive position in the industry and its ability to perform industry key success factors 
E)  Whether the industry's product is strongly or weakly differentiated 
A)  The industry's growth potential 
B)  Whether competitive pressures will likely grow stronger or weaker 
C)  Whether the industry's future profitability will be favorably or unfavorably affected by the prevailing driving forces 
D)  The company's competitive position in the industry and its ability to perform industry key success factors 
E)  Whether the industry's product is strongly or weakly differentiated

Question 13

In seeking to predict the next moves of close or key rivals,it is useful to consider such questions as:

Accepted Answer

A)  Which rivals badly need to increase their unit sales and market share? 
B)  Are there predictable trends in the timing of rivals' new-product launches or marketing promotions? 
C)  Which rivals have a strong incentive,along with the resources,to make major strategic changes? 
D)  Which rivals are likely to enter new geographic markets or expand their product offerings? 
E)  All of these 
A)  Which rivals badly need to increase their unit sales and market share? 
B)  Are there predictable trends in the timing of rivals' new-product launches or marketing promotions? 
C)  Which rivals have a strong incentive,along with the resources,to make major strategic changes? 
D)  Which rivals are likely to enter new geographic markets or expand their product offerings? 
E)  All of these

Question 14

Identify and briefly explain any three factors that weaken the competitive pressures stemming from the threat that new firms will enter the industry.

Accepted Answer

The answer of Identify and briefly explain any three factors...

Question 15

Identify and briefly explain any three of the factors that influence the bargaining strength and leverage of suppliers.

Accepted Answer

The answer of Identify and briefly explain any three of...

Question 16

What are the eight key questions that form the framework of thinking strategically about a company's industry and competitive environment?

Accepted Answer

The eight key questions that form the fr

Question 17

Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits?

Accepted Answer

A)  The industry's growth potential,whether competition appears destined to become stronger or weaker,how the industry's driving forces might affect overall industry profitability,the company's competitive position relative to rivals,and the company's proficiency in performing industry key success factors 
B)  An assessment of which firms in the industry have the best and worst competitive strategies,whether the number of strategic groups in the industry is increasing or decreasing,and whether economies of scale and experience curve effects are a key success factor 
C)  Whether there are more than five key success factors and more than five barriers to entry 
D)  Constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group 
E)  Whether the market leaders enjoy competitive advantages and how hard it is to develop a strongly differentiated product 
A)  The industry's growth potential,whether competition appears destined to become stronger or weaker,how the industry's driving forces might affect overall industry profitability,the company's competitive position relative to rivals,and the company's proficiency in performing industry key success factors 
B)  An assessment of which firms in the industry have the best and worst competitive strategies,whether the number of strategic groups in the industry is increasing or decreasing,and whether economies of scale and experience curve effects are a key success factor 
C)  Whether there are more than five key success factors and more than five barriers to entry 
D)  Constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group 
E)  Whether the market leaders enjoy competitive advantages and how hard it is to develop a strongly differentiated product

Question 18

A strategic group consists of those firms in an industry that

Accepted Answer

A)  are subject to the same driving forces. 
B)  are placing about the same emphasis on each distribution channel. 
C)  use the same key success factors to differentiate their products. 
D)  employ similar competitive approaches and occupy similar positions in the market. 
E)  have similar size market shares. 
A)  are subject to the same driving forces. 
B)  are placing about the same emphasis on each distribution channel. 
C)  use the same key success factors to differentiate their products. 
D)  employ similar competitive approaches and occupy similar positions in the market. 
E)  have similar size market shares.

Question 19

Can an industry be attractive to one company and unattractive to another company? Why or why not?

Accepted Answer

The answer of Can an industry be attractive to one...

Question 20

A competitive environment where there is strong rivalry among sellers,low entry barriers,strong competition from substitute products,and considerable bargaining leverage on the part of both suppliers and customers

Accepted Answer

A)  is competitively unattractive from the standpoint of earning good profits. 
B)  offers little ability to build a sustainable competitive advantage. 
C)  is highly conducive to achieving strong product differentiation and high brand loyalty. 
D)  offers moderate to good prospects for achieving low costs and building a sustainable competitive advantage. 
E)  requires that industry members have a strongly differentiated product offering in order to be profitable. 
A)  is competitively unattractive from the standpoint of earning good profits. 
B)  offers little ability to build a sustainable competitive advantage. 
C)  is highly conducive to achieving strong product differentiation and high brand loyalty. 
D)  offers moderate to good prospects for achieving low costs and building a sustainable competitive advantage. 
E)  requires that industry members have a strongly differentiated product offering in order to be profitable.

The state of competition in an industry is a function of

Which of the following is not an appropriate guideline for developing a strategic group map for a given industry?

The rivalry among competing firms tends to be more intense when

The nature and strength of the competitive forces that prevail in an industry is generally a joint product of the

Identify and briefly discuss any three of the factors that influence the bargaining strength and leverage of buyers.

Identify at least five common driving forces and briefly explain how each one can produce important changes in industry and competitive conditions.

Which of the following is not a good example of a marketing-related key success factor?

Just how strong the competitive pressures are from substitute products depends on

The rivalry among competing sellers tends to be less intense when

Identify and briefly explain any four of the factors that influence the strength or intensity of competitive rivalry among an industry's member firms.

The "driving forces" in an industry

Evaluating whether an industry presents a sufficiently attractive business opportunity usually does not involve a consideration of which of the following factors?

In seeking to predict the next moves of close or key rivals,it is useful to consider such questions as:

Identify and briefly explain any three factors that weaken the competitive pressures stemming from the threat that new firms will enter the industry.

Identify and briefly explain any three of the factors that influence the bargaining strength and leverage of suppliers.

What are the eight key questions that form the framework of thinking strategically about a company's industry and competitive environment?

Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits?

A strategic group consists of those firms in an industry that

Can an industry be attractive to one company and unattractive to another company? Why or why not?

A competitive environment where there is strong rivalry among sellers,low entry barriers,strong competition from substitute products,and considerable bargaining leverage on the part of both suppliers and customers

Strategy, Business Models, and Competitive Advantage

Charting a Companys Direction: Vision and Mission, Objectives, and Strategy

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Superior Strategy Execution-Another Path to Competitive Advantage

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Exam 3: Evaluating a Companys External Environment

The state of competition in an industry is a function of

Which of the following is not an appropriate guideline for developing a strategic group map for a given industry?

The rivalry among competing firms tends to be more intense when

The nature and strength of the competitive forces that prevail in an industry is generally a joint product of the

Identify and briefly discuss any three of the factors that influence the bargaining strength and leverage of buyers.

Identify at least five common driving forces and briefly explain how each one can produce important changes in industry and competitive conditions.

Which of the following is not a good example of a marketing-related key success factor?

Just how strong the competitive pressures are from substitute products depends on

The rivalry among competing sellers tends to be less intense when

Identify and briefly explain any four of the factors that influence the strength or intensity of competitive rivalry among an industry's member firms.

The "driving forces" in an industry

Evaluating whether an industry presents a sufficiently attractive business opportunity usually does not involve a consideration of which of the following factors?

In seeking to predict the next moves of close or key rivals,it is useful to consider such questions as:

Identify and briefly explain any three factors that weaken the competitive pressures stemming from the threat that new firms will enter the industry.

Identify and briefly explain any three of the factors that influence the bargaining strength and leverage of suppliers.

What are the eight key questions that form the framework of thinking strategically about a company's industry and competitive environment?

Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits?

A strategic group consists of those firms in an industry that

Can an industry be attractive to one company and unattractive to another company? Why or why not?

A competitive environment where there is strong rivalry among sellers,low entry barriers,strong competition from substitute products,and considerable bargaining leverage on the part of both suppliers and customers

Strategy, Business Models, and Competitive Advantage

Charting a Companys Direction: Vision and Mission, Objectives, and Strategy

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Superior Strategy Execution-Another Path to Competitive Advantage

Filters