Question 1

Which of the following is not a characteristic reactive response of managers of incumbent firms to the threat of new entrants?

Accepted Answer

A)  Withdrawing to a supposedly "safer" area in the competitive space 
B)  Diversifying product and services offerings 
C)  Abandoning the market or industry segment to redeploy resources 
D)  Improving current offerings of products and services

Question 2

Which of the following is a sign that a firm has stopped learning?

Accepted Answer

A)  Inattention to the entry of new competitors 
B)  No monitoring of the competitive landscape 
C)  The activities of competitors are discounted 
D)  No perception of the significance of new technological developments 
E)  All of these

Question 3

The Five Forces Model is particularly helpful in anticipating how industries will evolve over time.

Accepted Answer

A) True 
 B)False

Question 4

List three patterns that are common in the response of incumbent firms' managers to the entry of new rivals.

Accepted Answer

The answer of List three patterns that are common in...

Question 5

List three characteristic patterns of attack that new entrants will typically employ to gain entry into an industry.

Accepted Answer

The answer of List three characteristic patterns of attack that...

Question 6

Online booksellers reduced the competitive space for traditional bookstores.

Accepted Answer

A) True 
 B)False

Question 7

The first-mover advantages of new rivals are likely to persist for a short time only.

Accepted Answer

A) True 
 B)False

Question 8

The most profound changes in an industry are seldom produced by industry "outsiders."

Accepted Answer

A) True 
 B)False

Question 9

Why do managers often fail to notice and accurately assess important changes in their firms' industries?

Accepted Answer

The answer of Why do managers often fail to notice...

Question 10

As one or more of the dimensions in an industry changes, how is the competitive space in the industry affected?

Accepted Answer

The answer of As one or more of the dimensions...

Question 11

Abell's conceptualization of an industry as a "competitive space" included all of the following dimensions except:

Accepted Answer

A)  Who? 
B)  What? 
C)  When? 
D)  How? 
E)  None of these

Question 12

The competitive dynamics of many industries are inconsistent with structuralist views of industries.

Accepted Answer

A) True 
 B)False

Question 13

Apple Computer used its foresight and entrepreneurial creativity to transform the computer industry along three of its most important dimensions.

Accepted Answer

A) True 
 B)False

Question 14

Demographic changes and the emergence of new customer wants and needs can create new competitive space.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a characteristic pattern of attack that new entrants employ to gain entry into an industry?

Accepted Answer

A)  Entry on the periphery of the entry 
B)  Offering new products or services that capitalize on changes in more than one industry dimension 
C)  Offering new products or services that focus on change in one industry dimension 
D)  Engaging in entrepreneurial judo 
E)  None of these

Question 16

Industry incumbents tend to be more reactive than proactive in their responses to the threats posed by new entrants to the industry.

Accepted Answer

A) True 
 B)False

Question 17

Traditional perspectives on industry analysis assume that the focus of competition remains fixed on the traditional patterns of interaction among participating firms.

Accepted Answer

A) True 
 B)False

Exam 5: A Dynamic Model of Industry Structuring

Which of the following is not a characteristic reactive response of managers of incumbent firms to the threat of new entrants?

Which of the following is a sign that a firm has stopped learning?

The Five Forces Model is particularly helpful in anticipating how industries will evolve over time.

List three patterns that are common in the response of incumbent firms' managers to the entry of new rivals.

List three characteristic patterns of attack that new entrants will typically employ to gain entry into an industry.

Online booksellers reduced the competitive space for traditional bookstores.

The first-mover advantages of new rivals are likely to persist for a short time only.

The most profound changes in an industry are seldom produced by industry "outsiders."

Why do managers often fail to notice and accurately assess important changes in their firms' industries?

As one or more of the dimensions in an industry changes, how is the competitive space in the industry affected?

Abell's conceptualization of an industry as a "competitive space" included all of the following dimensions except:

The competitive dynamics of many industries are inconsistent with structuralist views of industries.

Apple Computer used its foresight and entrepreneurial creativity to transform the computer industry along three of its most important dimensions.

Demographic changes and the emergence of new customer wants and needs can create new competitive space.

Which of the following is not a characteristic pattern of attack that new entrants employ to gain entry into an industry?

Industry incumbents tend to be more reactive than proactive in their responses to the threats posed by new entrants to the industry.

Traditional perspectives on industry analysis assume that the focus of competition remains fixed on the traditional patterns of interaction among participating firms.