Question 1

In general, industries are more attractive when:

Accepted Answer

A)   the majority of the threats are high
B)   the majority of the threats are low
C)   the threat of each of the forces is neutralneither low nor high
D)   the threat of each of the five-forces is high
E)   the threat of each of the five-forces is low

Question 2

Virtually all studies have concluded that industry-specific factors are more important than firm-specific factors in terms of firm profitability.

Accepted Answer

A) True 
 B)False

Question 3

Identify the five competitive forces that determine industry profitably. Explain the purpose of analyzing these forces?

Accepted Answer

The five competitive forces that determi...

Question 4

The Partnering for Success boxed feature in Chapter 5 focuses on Barista Exchange, an online social network for independent coffeehouse owners. The central idea behind Barista Exchange is:

Accepted Answer

A)   that by banding together, independent coffeehouses can become as strong as the national chains
B)   to provide a forum for independent coffeehouse owners to share advertising and marketing ideas
C)   to maintain a job bank for independent coffeehouse owners
D)   to provide a platform for independent coffeehouse owners to obtain funding
E)   to help independent coffeehouse owners obtain legal advice

Question 5

The primary opportunity existing for startups in fragmented industries is to:

Accepted Answer

A)   pursue a niche strategy, which focuses on a narrow segment of the industry that might be encouraged to grow through product or process innovation
B)   win customers by placing an emphasis on service and process innovation
C)   capture a first-mover advantage
D)   pursue a cost reduction strategy, which is accomplished through achieving lower costs than industry incumbents through process innovation
E)   consolidate the industry and establish industry leadership as a result of doing so

Question 6

Firms that pursue a ________ strategy compete for market share on a country-by-country basis and vary their product or service offerings to meet the demands of the local market.

Accepted Answer

A)   inclusive
B)   universal
C)   multidomestic
D)   contemporary
E)   worldwide

Question 7

Shelly James recently launched a firm in the fruit drink industry, and has already exported her fruit drinks to 9 different countries. One thing that Shelly's firm is doing is that it is varying the tastes of the fruit drinks it sells on a country by country basis to meet the demands of the local markets. Shelly's firm is pursuing a ________ strategy.

Accepted Answer

A)   global
B)   home
C)   universal
D)   contemporary
E)   multidomestic

Question 8

A ________ industry is an industry that is experiencing slow or no increase in demand.

Accepted Answer

A)   declining
B)   global
C)   mature
D)   emerging
E)   fragmented

Question 9

Some industries, like the athletic shoe industry, are dominated by a small number of firms with strong brands. These industries are difficult to break into without spending heavily on advertising. The barrier to entry that the firms in these types of industries have erected is referred to as:

Accepted Answer

A)   government and legal barriers
B)   capital requirements
C)   product differentiation
D)   cost advantages independent of size
E)   access to distribution channels

Question 10

A competitor analysis is a detailed evaluation of a firm's competitors.

Accepted Answer

A) True 
 B)False

Question 11

The first step in a competitor analysis is to determine who the competition is.

Accepted Answer

A) True 
 B)False

Question 12

John Petersen is thinking about starting a firm in the specialty chemical industry. In the industry analysis John has been conducting, one thing he has noticed is that the specialty chemical industry is characterized by the following factors: high supplier concentration, high switching costs for buyers when they switch from one supplier to another, and no attractive substitutes for the products that most of the suppliers provide. These factors concern John, because they tell him that the profitability of the specialty chemical industry is suppressed by the:

Accepted Answer

A)   threat of substitutes
B)   bargaining power of buyers
C)   rivalry among existing firms
D)   bargaining power of suppliers
E)   threat of new entrants

Question 13

Industry analysis is business research that focuses on the potential of an industry.

Accepted Answer

A) True 
 B)False

Question 14

In the beverage industry, soda, fruit juice, and sports drinks are ________ competitors of bottled water.

Accepted Answer

A)   occasional
B)   infrequent
C)   indirect
D)   direct
E)   future

Question 15

Amy has just launched a firm in the sports drink industry. She has decided to complete a grid to see how she stacks up against her competitors. Along the horizontal axis of the grid, she lists her firm along with her major competitors. Along the vertical axis of the grid, she lists the main competitive factors in her industry. Amy is completing a:

Accepted Answer

A)   strategic analysis spreadsheet
B)   tactical analysis framework
C)   competitive analysis grid
D)   strategic analysis grid
E)   behavioral analysis spreadsheet

Exam 5: Industry and Competitor Analysis

Virtually all studies have concluded that industry-specific factors are more important than firm-specific factors in terms of firm profitability.

Correct Answer
verified

Correct Answer
verified

Identify the five competitive forces that determine industry profitably. Explain the purpose of analyzing these forces?

Correct Answer
verified
The five competitive forces that determi...
View Answer

The primary opportunity existing for startups in fragmented industries is to:

Correct Answer
verified

Industry analysis is business research that focuses on the potential of an industry.

Correct Answer
verified

The first step in a competitor analysis is to determine who the competition is.

Correct Answer
verified

Firms that pursue a ________ strategy compete for market share on a country-by-country basis and vary their product or service offerings to meet the demands of the local market.

Correct Answer
verified

In the beverage industry, soda, fruit juice, and sports drinks are ________ competitors of bottled water.

Correct Answer
verified

Correct Answer
verified

In general, industries are more attractive when:

Correct Answer
verified

A ________ industry is an industry that is experiencing slow or no increase in demand.

Correct Answer
verified

Correct Answer
verified

The Partnering for Success boxed feature in Chapter 5 focuses on Barista Exchange, an online social network for independent coffeehouse owners. The central idea behind Barista Exchange is:

Correct Answer
verified

Some industries, like the athletic shoe industry, are dominated by a small number of firms with strong brands. These industries are difficult to break into without spending heavily on advertising. The barrier to entry that the firms in these types of industries have erected is referred to as:

Correct Answer
verified

A competitor analysis is a detailed evaluation of a firm's competitors.

Correct Answer
verified

Exam 5: Industry and Competitor Analysis

Virtually all studies have concluded that industry-specific factors are more important than firm-specific factors in terms of firm profitability.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Identify the five competitive forces that determine industry profitably. Explain the purpose of analyzing these forces?

Correct AnswerverifiedThe five competitive forces that determi...View AnswerShow Answer

The primary opportunity existing for startups in fragmented industries is to:

Correct AnswerverifiedShow Answer

Industry analysis is business research that focuses on the potential of an industry.

Correct AnswerverifiedShow Answer

The first step in a competitor analysis is to determine who the competition is.

Correct AnswerverifiedShow Answer

Firms that pursue a ________ strategy compete for market share on a country-by-country basis and vary their product or service offerings to meet the demands of the local market.

Correct AnswerverifiedShow Answer

In the beverage industry, soda, fruit juice, and sports drinks are ________ competitors of bottled water.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In general, industries are more attractive when:

Correct AnswerverifiedShow Answer

A ________ industry is an industry that is experiencing slow or no increase in demand.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Partnering for Success boxed feature in Chapter 5 focuses on Barista Exchange, an online social network for independent coffeehouse owners. The central idea behind Barista Exchange is:

Correct AnswerverifiedShow Answer

Some industries, like the athletic shoe industry, are dominated by a small number of firms with strong brands. These industries are difficult to break into without spending heavily on advertising. The barrier to entry that the firms in these types of industries have erected is referred to as:

Correct AnswerverifiedShow Answer

A competitor analysis is a detailed evaluation of a firm's competitors.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The five competitive forces that determi...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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