Question 1

An industry contains one strategic group when all sellers:

Accepted Answer

A)   are subject to the same driving forces.
B)   place about the same emphasis on various distribution channels.
C)   use the same key success factors to differentiate their products.
D)   pursue essentially identical strategies and have similar market positions.
E)   pursue varying distribution channels and product attributes,and have customer service attributes that differentiate them in the marketplace. D

Question 2

Not all buyers of an industry's product have equal degrees of bargaining power with sellers,because:

Accepted Answer

A)   sellers in an industry provide similar products and generally their cost structures are different because of competitive advantages in their operation.
B)   some sellers may be less sensitive than others to price,quality,or service differences.
C)   along the various stages of the value chain sellers are conducive to earning attractive profits.
D)   the industry is a highly cohesive structure with limited fragmentation and few industry members.
E)   sellers are large and few in number relative to the number of buyers. B

Question 3

The competitive pressures from substitute products tend to be stronger when:

Accepted Answer

A)   good substitutes are readily available.
B)   there are fewer number of substitute products.
C)   substitutes have lower performance features.
D)   buyers incur high costs in switching to substitutes.
E)   substitutes are priced above the market. A

Question 4

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 or active in making fresh moves to improve their market standing and business performance.
D)   rivals have diverse strategies and objectives and are located in different countries.
E)   rival sellers have weakly differentiated products.

Question 5

Rivalry among competing sellers is generally more intense when:

Accepted Answer

A)   there are relatively few industry key success factors.
B)   the industry's driving forces are strong and rivals have strongly differentiated products.
C)   barriers to entry are moderately high and the pool of likely entry candidates is small.
D)   rivals are active in making fresh moves to lower prices,introduce new products,increase promotional efforts and advertising,and otherwise gain sales and market share.
E)   barriers to entry are high and buyer switching costs are high.

Question 6

Information regarding the four components of the Framework for Competitor Analysis can NOT be:

Accepted Answer

A)   gleaned from company press releases.
B)   gathered from a rival's internal proprietary strategic information.
C)   assembled from website data.
D)   observed from public information.
E)   garnered from competitive intelligence departments.

Question 7

Increasing globalization of the industry can be a driving force because:

Accepted Answer

A)   the products of foreign competitors are nearly always cheaper or of better quality than those of domestic companies.
B)   foreign producers typically have lower costs,greater technological expertise,and more product innovation capabilities than domestic firms.
C)   companies need to spread their operating reach into more and more country markets to meet consumer demand and take advantage of available operating activities.
D)   it results in companies having fewer competitors and a strategic group map with fewer circles.
E)   market growth rates go up,product innovation speeds up,and new firms are likely to enter the industry.

Question 8

Managers must chart a company's strategic course by:

Accepted Answer

A)   focusing on the local environment in which they are operating.
B)   ensuring excess production capacity and/or inventory.
C)   competing fiercely for a share in the market.
D)   building a bigger dealer network.
E)   developing a thorough understanding of the company's external and internal environment.

Question 9

Identify and briefly explain any three factors that lead to strong bargaining power on the part of suppliers.

Accepted Answer

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

Question 10

A strategic group:

Accepted Answer

A)   consists of those industry members that are growing at about the same rate and have similar product line breadth.
B)   includes all rival firms having comparable profitability.
C)   is a cluster of industry members with similar competitive approaches and market positions in the market.
D)   consists of those firms whose market shares are about the same size.
E)   is made up of those firms having comparable profit margins.

Question 11

Competitive markets are economic battlefields.True or false? Explain.

Accepted Answer

The answer of Competitive markets are economic battlefields.True or false?...

Question 12

Which of the following factors is NOT a relevant consideration in determining the strength of buyer bargaining power?

Accepted Answer

A)   The relationship between the buyer market and seller market
B)   The degree to which the seller is a manufacturer of goods and services in substantial quantities
C)   The degree to which buyers pose a credible threat to integrate backward into the product market of sellers
D)   The degree to which buyers are well-informed about a seller's products,prices,and costs
E)   The degree to which industry goods are standardized and undifferentiated

Question 13

What is the analytical value of studying competitors and trying to predict what moves rivals will make next?

Accepted Answer

The answer of What is the analytical value of studying...

Question 14

Identify at least three benefits of constructing a strategic group map.

Accepted Answer

The answer of Identify at least three benefits of constructing...

Question 15

The task of driving-forces analysis is to:

Accepted Answer

A)   develop a comprehensive list of all the potential causes of changing industry conditions.
B)   predict which new driving forces will emerge next.
C)   determine which of the five competitive forces is the biggest driver of industry change.
D)   identify the driving forces,assess whether their impact will make the industry more or less attractive,and determine what strategy changes are needed to prepare for the impacts of the driving forces.
E)   learn what the industry key success factors are and how they might change in the future.

Question 16

Competitive pressures associated with the threat of entry are greater in all of the following situations,EXCEPT when:

Accepted Answer

A)   incumbent firms are willing to strongly contest the entry of newcomers with moves designed to make entry unprofitable.
B)   a large pool of potential entrants exists,some of which have the capabilities to overcome high entry barriers.
C)   entry barriers are relatively low and buyer demand for the product is growing rapidly,and newcomers can expect to earn attractive profits without inviting a strong reaction from incumbents.
D)   existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence.
E)   customers have low brand preferences and low degrees of loyalty to seller.

Question 17

The competitive battles among rival sellers striving for better market positions,higher sales and market shares,and competitive advantage,suggest the rivalry force:

Accepted Answer

A)   is stronger when firms strive to be low-cost producers than when they use differentiation and focus strategies.
B)   is often weak when rivals have emotional stakes in business or face high exit barriers.
C)   is largely unaffected by whether industry conditions tempt rivals to use price cuts or other competitive weapons to boost unit sales.
D)   tends to intensify when strong companies with sizable financial resources,proven competitive capabilities,and respected brand names hurdle entry barriers looking for growth opportunities and launch aggressive,well-funded moves to transform into strong market contenders.
E)   is weaker when more firms have weakly differentiated products,buyer demand is growing slowly,and buyers have moderate switching costs.

Question 18

Which of the following is NOT a question asked to deduce a marketing-related key success factor?

Accepted Answer

A)   What are the industry product R&D capabilities and expertise in product design?
B)   On what basis do buyers choose between the competing brands of sellers?
C)   What product attributes and service characteristics are crucial?
D)   What resources must a company have to be competitive?
E)   What shortcomings are almost certain to put a company at a significant disadvantage?

Question 19

When an industry member is a major customer of the supplier,and the relationship (partnership)is unusually effective and mutually advantageous:

Accepted Answer

A)   it is rare for such partnerships to have much competitive impact on those industry members not having such partnerships.
B)   one unfortunate outcome is that it tends to give the supply partners much enhanced bargaining power in their dealings with these industry members.
C)   there is a strong likelihood such partnerships will put increased competitive pressure on those industry members who lack productive collaborative relationships with their suppliers.
D)   there is a high likelihood of such partnerships reducing competitive pressures on ALL industry members,provided technological change in the suppliers' business is rapid and the item being supplied is a commodity.
E)   the usual result is to reduce competitive pressures on all industry members,provided the costs of the items furnished by supply chain partners amount to 50 percent or more of total cost.

Question 20

Identify and briefly explain any three factors that lead to weak bargaining power on the part of buyers.

Accepted Answer