Question 1

Which of the following is not a good example of a substitute product that triggers stronger competitive pressures?

Accepted Answer

A) Lyft or Uber as a substitute for rental cars 
B) Airbnb as a substitute for hotels and motels 
C) Dasani water as a substitute for Aquafina water 
D) Smartphones as substitutes for film cameras 
E) Netflix and Amazon streaming video on demand as a substitute for DVD players 
A) Lyft or Uber as a substitute for rental cars 
B) Airbnb as a substitute for hotels and motels 
C) Dasani water as a substitute for Aquafina water 
D) Smartphones as substitutes for film cameras 
E) Netflix and Amazon streaming video on demand as a substitute for DVD players C

Question 2

Explain the meaning and significance of each of the following:
a.driving forces
b.PESTEL analysis
c.strategic group mapping
d.key success factors

Accepted Answer

Driving forces analysis consists of three steps: (1)identifying what the driving forces are; (2)assessing whether the drivers of change are,individually or collectively,acting to make the industry more or less attractive;and (3)determining what strategy changes are needed to prepare for the impact of the driving forces.PESTEL analysis encompasses the six principal components of the broader macroenvironment (political factors,economic conditions in the firm's general environment,sociocultural forces,technological factors,environmental forces,and legal/regulatory factors).A strategic group map involves identifying the key competitive characteristics that differentiate firms' market positions,plotting firms on a two-variable map based on their competitive approaches,assigning firms occupying the same map location to a common strategic group,and drawing circles around each strategic group,making the circles proportional to the group's share of total industry sales.Key success factors are the competitive characteristics that differentiate firms' market positions.

Question 3

Each of the following exemplifies the impact of the macroenvironment on a company's strategic opportunities except

Accepted Answer

A) United States' sales of Stolichnaya Vodka dwindle on account of a boycott of Russian products. 
B) consumer confidence in Volkswagen drops precipitously because of falsified emissions data. 
C) Netflix squares off with Amazon Prime as its most potent rival in the streaming television and film industry. 
D) traffic increases at the outlets of Whole Foods following its introduction of new store formats that are solely for the sale of private label generic products. 
E) sales of FitBit surge on account of new features that monitor the users' blood pressure and sleep habits. 
A) United States' sales of Stolichnaya Vodka dwindle on account of a boycott of Russian products. 
B) consumer confidence in Volkswagen drops precipitously because of falsified emissions data. 
C) Netflix squares off with Amazon Prime as its most potent rival in the streaming television and film industry. 
D) traffic increases at the outlets of Whole Foods following its introduction of new store formats that are solely for the sale of private label generic products. 
E) sales of FitBit surge on account of new features that monitor the users' blood pressure and sleep habits. C

Question 4

Which one of the following increases the competitive pressures associated with the threat of entry?

Accepted Answer

A) Incumbent firms are likely to launch competitive initiatives to strongly contest the entry of newcomers. 
B) Buyers have a high degree of loyalty to the brands and product offerings of existing industry members. 
C) Buyer demand for the product is growing fairly slowly. 
D) Few outsiders have the expertise and resources to hurdle past whatever entry barriers exist. 
E) Newcomers can expect to earn attractive profits. 
A) Incumbent firms are likely to launch competitive initiatives to strongly contest the entry of newcomers. 
B) Buyers have a high degree of loyalty to the brands and product offerings of existing industry members. 
C) Buyer demand for the product is growing fairly slowly. 
D) Few outsiders have the expertise and resources to hurdle past whatever entry barriers exist. 
E) Newcomers can expect to earn attractive profits.

Question 5

Which of the following is not a major question to ask in thinking strategically about industry and competitive conditions in a given industry?

Accepted Answer

A) How many companies in the industry have good track records for revenue growth and profitability? 
B) What strategic moves are rivals likely to make next? 
C) What are the key factors for future competitive success? 
D) Does the outlook for the industry offer good prospects for profitability? 
E) What forces are driving changes in the industry,and what impact will these changes have on competitive intensity and industry profitability? 
A) How many companies in the industry have good track records for revenue growth and profitability? 
B) What strategic moves are rivals likely to make next? 
C) What are the key factors for future competitive success? 
D) Does the outlook for the industry offer good prospects for profitability? 
E) What forces are driving changes in the industry,and what impact will these changes have on competitive intensity and industry profitability?

Question 6

Which of the following is not a factor that causes buyers' bargaining power to be stronger?

Accepted Answer

A) Some buyers are a threat to integrating backward into the business of sellers. 
B) The industry is composed of a few large sellers,and the customer group consists of numerous buyers that purchase in fairly small quantities. 
C) Buyers have considerable discretion over whether and when they purchase the product. 
D) Buyers are well informed about sellers' products,prices,and costs. 
E) The costs incurred by buyers in switching to competing brands or to substitute products are relatively low. 
A) Some buyers are a threat to integrating backward into the business of sellers. 
B) The industry is composed of a few large sellers,and the customer group consists of numerous buyers that purchase in fairly small quantities. 
C) Buyers have considerable discretion over whether and when they purchase the product. 
D) Buyers are well informed about sellers' products,prices,and costs. 
E) The costs incurred by buyers in switching to competing brands or to substitute products are relatively low.

Question 7

The collective impact of the five competitive forces on competitive pressures tends to

Accepted Answer

A) strengthen the industry's driving forces. 
B) lower the combined profitability of industry members. 
C) make it difficult to achieve a competitive advantage via anything other than being the industry's low-cost leader. 
D) increase the opportunities for industry incumbents to attain a competitive advantage. 
E) raise the number of industry key success factors. 
A) strengthen the industry's driving forces. 
B) lower the combined profitability of industry members. 
C) make it difficult to achieve a competitive advantage via anything other than being the industry's low-cost leader. 
D) increase the opportunities for industry incumbents to attain a competitive advantage. 
E) raise the number of industry key success factors.

Question 8

The marketplace being a competitive battlefield is primarily due to

Accepted Answer

A) the ongoing race among rivals to achieve the fastest rate of growth in revenues and profits. 
B) the ongoing efforts of industry members to introduce innovative products/services as fast followers into the marketplace. 
C) the ability of industry rivals to build strong defenses against the industry's driving forces. 
D) the constant rivalry of firms to strengthen buyer patronage among competing sellers of a product or service,in order to win a competitive edge over rivals. 
E) the efforts of industry incumbents to lower cost products/services at a faster rate than their rivals. 
A) the ongoing race among rivals to achieve the fastest rate of growth in revenues and profits. 
B) the ongoing efforts of industry members to introduce innovative products/services as fast followers into the marketplace. 
C) the ability of industry rivals to build strong defenses against the industry's driving forces. 
D) the constant rivalry of firms to strengthen buyer patronage among competing sellers of a product or service,in order to win a competitive edge over rivals. 
E) the efforts of industry incumbents to lower cost products/services at a faster rate than their rivals.

Question 9

The most powerful of the five competitive forces is usually the

Accepted Answer

A) competitive pressures that stem from the ready availability of attractively priced substitute products. 
B) competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage. 
C) competitive pressures that emerge from close collaboration with suppliers. 
D) competitive pressures associated with the potential entry of new competitors. 
E) competitive pressures from the bargaining power and leverage that large customers are able to exercise. 
A) competitive pressures that stem from the ready availability of attractively priced substitute products. 
B) competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage. 
C) competitive pressures that emerge from close collaboration with suppliers. 
D) competitive pressures associated with the potential entry of new competitors. 
E) competitive pressures from the bargaining power and leverage that large customers are able to exercise.

Question 10

Which one of the following does not cause the rivalry among competing sellers to be weak?

Accepted Answer

A) High buyer switching costs 
B) Rapid growth in buyer demand 
C) Industry members are not aggressive in drawing sales and market share away from rivals 
D) One or more competitors become dissatisfied with their market position 
E) Strongly differentiated products among rival sellers 
A) High buyer switching costs 
B) Rapid growth in buyer demand 
C) Industry members are not aggressive in drawing sales and market share away from rivals 
D) One or more competitors become dissatisfied with their market position 
E) Strongly differentiated products among rival sellers

Question 11

Which of the following factors usually is not a consideration involved with evaluating whether an industry presents a sufficiently attractive business opportunity?

Accepted Answer

A) Constructing a strategic group map to assess the attractiveness of the competitive position of each strategic group to determine the overall attractiveness of all the strategic groups 
B) Using value chain analysis to determine the relative cost positions of rival firms and who is the industry's lowest-cost producer 
C) Determining which firms in the industry have a competitive advantage and how they attained their advantage 
D) Determining the industry outlook for future profitability 
E) Determining the overall strength of the five competitive forces 
A) Constructing a strategic group map to assess the attractiveness of the competitive position of each strategic group to determine the overall attractiveness of all the strategic groups 
B) Using value chain analysis to determine the relative cost positions of rival firms and who is the industry's lowest-cost producer 
C) Determining which firms in the industry have a competitive advantage and how they attained their advantage 
D) Determining the industry outlook for future profitability 
E) Determining the overall strength of the five competitive forces

Question 12

The best test of whether potential entry is a strong or weak competitive force is

Accepted Answer

A) the strength of buyer loyalty to existing brands. 
B) whether the industry's driving forces make it harder or easier for new entrants to be successful. 
C) whether the strategies of industry members are well matched to the industry's key success factors. 
D) whether the industry offers an opportunity for a blue ocean strategy. 
E) to ask if the industry's growth and profit prospects are strongly attractive to potential entry candidates. 
A) the strength of buyer loyalty to existing brands. 
B) whether the industry's driving forces make it harder or easier for new entrants to be successful. 
C) whether the strategies of industry members are well matched to the industry's key success factors. 
D) whether the industry offers an opportunity for a blue ocean strategy. 
E) to ask if the industry's growth and profit prospects are strongly attractive to potential entry candidates.

Question 13

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

Rivalry determinants associated with com

Question 14

The competitive threat that outsiders will enter a market is weaker when

Accepted Answer

A) financially strong industry members send strong signals that they will launch strategic initiatives to combat the entry of newcomers. 
B) the pool of entry candidates is large,and some have resources that would make them formidable market contenders. 
C) the industry's market growth is rapid. 
D) newcomers can be expected to earn attractive profits. 
E) buyers have little loyalty to the brands and product offerings of existing industry members. 
A) financially strong industry members send strong signals that they will launch strategic initiatives to combat the entry of newcomers. 
B) the pool of entry candidates is large,and some have resources that would make them formidable market contenders. 
C) the industry's market growth is rapid. 
D) newcomers can be expected to earn attractive profits. 
E) buyers have little loyalty to the brands and product offerings of existing industry members.

Question 15

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 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 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.

Question 16

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

Accepted Answer

A) Variables chosen as axes for the map should indicate big differences in how rivals have positioned themselves to compete in the marketplace. 
B) Variables chosen as axes for the map can be quantitative,qualitative,or discrete and defined in terms of distinct classes and combinations. 
C) Variables selected 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) Sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group. 
A) Variables chosen as axes for the map should indicate big differences in how rivals have positioned themselves to compete in the marketplace. 
B) Variables chosen as axes for the map can be quantitative,qualitative,or discrete and defined in terms of distinct classes and combinations. 
C) Variables selected 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) Sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group.

Question 17

An industry's key success factors

Accepted Answer

A) are a function of market share,entry barriers,economies of scale,degree of vertical integration,and industry profitability. 
B) vary according to whether an industry has high or low long-term attractiveness. 
C) can be determined through identifying an industry's dominant economic characteristics,assessing the five competitive forces,considering the impacts of the driving forces,comparing the market positions of industry members,and forecasting the likely next moves of industry rivals. 
D) can be determined from studying the "winning" strategies of the industry leaders and ruling out as potential key success factors the strategy elements of those firms considered to have "losing" strategies. 
E) depend on the relative competitive strengths of the industry leaders and how vulnerable they are to competitive attack. 
A) are a function of market share,entry barriers,economies of scale,degree of vertical integration,and industry profitability. 
B) vary according to whether an industry has high or low long-term attractiveness. 
C) can be determined through identifying an industry's dominant economic characteristics,assessing the five competitive forces,considering the impacts of the driving forces,comparing the market positions of industry members,and forecasting the likely next moves of industry rivals. 
D) can be determined from studying the "winning" strategies of the industry leaders and ruling out as potential key success factors the strategy elements of those firms considered to have "losing" strategies. 
E) depend on the relative competitive strengths of the industry leaders and how vulnerable they are to competitive attack.

Question 18

Which one of the following is not a common type of driving force?

Accepted Answer

A) Entry or exit of major firms 
B) Changing societal concerns,attitudes,and lifestyles 
C) Diffusion of technical know-how across more companies and more countries 
D) Increasing efforts on the part of industry members to collaborate closely with their suppliers 
E) Technological change and manufacturing process innovation 
A) Entry or exit of major firms 
B) Changing societal concerns,attitudes,and lifestyles 
C) Diffusion of technical know-how across more companies and more countries 
D) Increasing efforts on the part of industry members to collaborate closely with their suppliers 
E) Technological change and manufacturing process innovation

Question 19

In seeking to predict the next moves of close or key rivals,it is not useful to consider which of these questions?

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) Which rivals have the strongest management team. 
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) Which rivals have the strongest management team.

Question 20

Identify five factors that tend to intensify competitive rivalry among an industry's member firms.

Accepted Answer

Rivalry determinants associated with int

Which of the following is not a good example of a substitute product that triggers stronger competitive pressures?

Explain the meaning and significance of each of the following: a.driving forces b.PESTEL analysis c.strategic group mapping d.key success factors

Each of the following exemplifies the impact of the macroenvironment on a company's strategic opportunities except

Which one of the following increases the competitive pressures associated with the threat of entry?

Which of the following is not a major question to ask in thinking strategically about industry and competitive conditions in a given industry?

Which of the following is not a factor that causes buyers' bargaining power to be stronger?

The collective impact of the five competitive forces on competitive pressures tends to

The marketplace being a competitive battlefield is primarily due to

The most powerful of the five competitive forces is usually the

Which one of the following does not cause the rivalry among competing sellers to be weak?

Which of the following factors usually is not a consideration involved with evaluating whether an industry presents a sufficiently attractive business opportunity?

The best test of whether potential entry is a strong or weak competitive force is

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 competitive threat that outsiders will enter a market is weaker when

Rivalry among competing firms tends to be more intense when

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

An industry's key success factors

Which one of the following is not a common type of driving force?

In seeking to predict the next moves of close or key rivals,it is not useful to consider which of these questions?

Identify five factors that tend to intensify competitive rivalry among an industry's member firms.

Strategy,business Models,and Competitive Advantage

Strategy Formulation,execution,and Governance

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 Executionanother Path to Competitive Advantage

Filters

Exam 3: Evaluating a Companys External Environment

Which of the following is not a good example of a substitute product that triggers stronger competitive pressures?

Explain the meaning and significance of each of the following: a.driving forces b.PESTEL analysis c.strategic group mapping d.key success factors

Each of the following exemplifies the impact of the macroenvironment on a company's strategic opportunities except

Which one of the following increases the competitive pressures associated with the threat of entry?

Which of the following is not a major question to ask in thinking strategically about industry and competitive conditions in a given industry?

Which of the following is not a factor that causes buyers' bargaining power to be stronger?

The collective impact of the five competitive forces on competitive pressures tends to

The marketplace being a competitive battlefield is primarily due to

The most powerful of the five competitive forces is usually the

Which one of the following does not cause the rivalry among competing sellers to be weak?

Which of the following factors usually is not a consideration involved with evaluating whether an industry presents a sufficiently attractive business opportunity?

The best test of whether potential entry is a strong or weak competitive force is

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 competitive threat that outsiders will enter a market is weaker when

Rivalry among competing firms tends to be more intense when

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

An industry's key success factors

Which one of the following is not a common type of driving force?

In seeking to predict the next moves of close or key rivals,it is not useful to consider which of these questions?

Identify five factors that tend to intensify competitive rivalry among an industry's member firms.

Strategy,business Models,and Competitive Advantage

Strategy Formulation,execution,and Governance

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 Executionanother Path to Competitive Advantage

Filters