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Question 11 / 1 point

Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits?Question options:1)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

2)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

3)Whether there are more than five key success factors and more than five barriers to entry

4)Constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group

5)Whether the market leaders enjoy competitive advantages and how hard it is to develop a strongly differentiated product


Whether buyer bargaining power poses a strong or weak source of competitive pressure on industry members depends in part onQuestion options:1)whether most buyers possess roughly equal or varying degrees of bargaining power.

2)how many buyers are engaged in collaborative partnerships with sellers.

3)whether entry barriers are high or low.

4)whether the overall quality of the items being furnished by industry members is rising or falling.

5)whether buyer demand is strong or declining.


The "driving forces" in an industryQuestion options:1)are usually triggered by changing technology or stronger learning/experience curve effects.

2)usually are spawned by growing demand for the product, the outbreak of price-cutting, and big reductions in entry barriers.

3)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.

4)appear when an industry begins to mature but are seldom present during early stages of the industry life cycle.

5)are usually triggered by shifting buyer needs and expectations or by the appearance of new substitute products.


The state of competition in an industry is a function ofQuestion options:1)the competitive pressures associated with rivalry among competing sellers to attract customers.

2)competitive pressures coming from the attempts of companies in other industries attempting to win buyers over to their substitute products.

3)competitive pressures associated with the threat of new entrants into the marketplace.

4)competitive pressures associated with the bargaining power of suppliers and customers.

5)All of these


In which one of the following instances is supplier bargaining power and leverage not weakened?Question options:1)When industry members pose a credible threat of backward integration into the business of suppliers

2)When the cost of switching from one supplier to another is low

3)When the buying firms purchase in large quantities and thus are important customers of the suppliers

4)When the item being supplied is a commodity

5)When the items purchased from suppliers are in short supply


Driving forces analysisQuestion options:1)involves identifying the driving forces, assessing whether their impact will make the industry more or less attractive, and determining what strategy changes a company may need to make to prepare for the impact of the driving forces.

2)identifies which strategic group is the most powerful.

3)helps managers identify which industry member is likely to become (or remain) the industry leader and why.

4)helps managers identify which key success factors are most likely to help their company gain a competitive advantage.

5)helps managers identify which of the five competitive forces will be the strongest driver of industry change.


Not all positions on a strategic group map are equally attractive becauseQuestion options:1)entry and exit barriers are different for each strategic group.

2)key success factors are usually quite different for differently positioned industry participants.

3)small strategic groups are always less profitable than large strategic groups.

4)across-group rivalry is strongest at the outer edges of the strategic group map.

5)industry driving forces and competitive pressures favor some companies or groups and hurt others and the profit potential of different strategic groups varies because of strengths and weaknesses in each strategic group's position.


The most powerful of the five competitive forces is usuallyQuestion options:1)the competitive pressures that stem from the ready availability of attractively priced substitute products.

2)the competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage.

3)the benefits that emerge from close collaboration with suppliers and the competitive pressures that such collaboration creates.

4)the competitive pressures associated with the potential entry of new competitors.

5)the bargaining power and leverage that large customers are able to exercise.


A company's broad "macro-environment" refers toQuestion options:1)the industry and competitive arena in which the company operates.

2)general economic conditions plus the factors driving change in the markets being served.

3)all the strategically significant forces and factors outside a company's boundaries - general economic conditions, population demographics, societal values and lifestyles, technological factors, and governmental legislation and regulation.

4)the competitive market environment that exists between a company and its competitors.

5)the dominant economic features of a company's industry.


Which one of the following is not part of a company's broad macro-environment?Question options:1)conditions in the economy at large.

2)population demographics and societal values and lifestyles.

3)technological and ecological factors.

4)governmental regulations and legislation.

5)the company's resource strengths, resource weaknesses, and competitive capabilities.


Which one of the following is not a factor that affects the strength of supplier bargaining power?Question options:1)Whether needed inputs are in short or ample supply

2)Whether industry members are a strong threat to integrate backward into the business of suppliers

3)Whether industry members are struggling to make good profits because of slow-growing market demand

4)Whether the costs of industry members to switch their purchases to alternative suppliers or substitutes are high or low

5)Whether the item being supplied is a commodity that is readily available from many suppliers


An industry's key success factorsQuestion options:1)are a function of market share, entry barriers, economies of scale, degree of vertical integration, and industry profitability.

2)vary according to whether an industry has high or low long-term attractiveness.

3)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.

4)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.

5)depend on the relative competitive strengths of the industry leaders and how vulnerable they are to competitive attack.


The bargaining leverage of suppliers is greater whenQuestion options:1)only a small number of suppliers exist and when it is difficult for industry members to switch to attractive substitutes.

2)industry members incur low costs in switching their purchases from one supplier to another.

3)industry members purchase in large quantities and thus are important customers of the suppliers.

4)it makes good economic sense for industry members to vertically integrate backward.

5)the supplier industry is composed of a large number of relatively small suppliers.


The rivalry among competing firms tends to be more intense whenQuestion options:1)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.

2)the products/services of rival sellers are strongly differentiated and buyer demand is strong.

3)rivals are relatively content with their market position.

4)there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members.

5)there are fewer firms in the industry that have unequal market shares.


As a rule, the stronger the collective impact of competitive pressures associated with the five competitive forces,Question options:1)the stronger are the industry's driving forces.

2)the lower the combined profitability of industry members.

3)the fewer companies that can achieve a competitive advantage via anything other than being the industry's low-cost leader.

4)the larger the number of competitive advantage opportunities for industry members.

5)the greater the number of industry key success factors.


Which of the following is not generally a "driving force" capable of producing fundamental changes in industry and competitive conditions?Question options:1)Changes in the long-term industry growth rate

2)Increasing globalization of the industry

3)Product innovation and technological change

4)Ups and downs in the economy and in interest rates

5)New government regulations or significant changes in government policy toward the industry


Which of the following are most unlikely to qualify as driving forces?Question options:1)Changes in the long-term industry growth rate, the entry or exit of major firms, and changes in cost and efficiency

2)Increasing globalization of the industry and product innovation

3)New Internet technology applications, new government regulations, and significant changes in government policy toward the industry

4)Mounting competition from substitutes and increasing efforts to collaborate with suppliers via strategic alliances

5)Changes in who buys the industry's product and how they use it


Which of the following is not an appropriate guideline for developing a strategic group map for a given industry?Question options:1)The variables chosen as axes for the map should indicate big differences in how rivals have positioned themselves to compete in the marketplace.

2)The variables chosen as axes for the map can be quantitative, qualitative, or discrete and defined in terms of distinct classes and combinations.

3)The variables chosen as axes for the map should be highly correlated.

4)Several maps should be drawn if more than one pair of variables can help illuminate differences in the competitive positioning of industry members.

5)The sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group.


Which one of the following is not a reason industry members are often motivated to enter into collaborative partnerships with key suppliers?Question options:1)To reduce the costs of switching suppliers

2)To speed the availability of next-generation components

3)To enhance the quality of parts and components being supplied and reduce defect rates

4)To squeeze out important cost savings for both themselves and their suppliers

5)To reduce inventory and logistics costs


In which of the following instances are industry members not subject to stronger competitive pressures from substitute products?Question options:1)The costs to buyers of switching over to the substitutes are low

2)Buyers are dubious about using substitutes

3)The quality and performance of the substitutes is well matched to what buyers need to meet their requirements

4)Buyer brand loyalty is weak

5)Substitutes are readily available at competitive prices


Which one of the following increases the competitive pressures associated with the threat of entry?Question options:1)When incumbent firms are likely to launch competitive initiatives to strongly contest the entry of newcomers

2)When buyers have a high degree of loyalty to the brands and product offerings of existing industry members

3)When buyer demand for the product is growing fairly slowly

4)When few outsiders have the expertise and resources to hurdle whatever entry barriers exist

5)When newcomers can expect to earn attractive profits


In seeking to predict the next moves of close or key rivals, it is useful to consider such questions as:Question options:1)Which rivals badly need to increase their unit sales and market share?

2)Are there predictable trends in the timing of rivals' new-product launches or marketing promotions?

3)Which rivals have a strong incentive, along with the resources, to make major strategic changes?

4)Which rivals are likely to enter new geographic markets or expand their product offerings?

5)All of these


Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?Question options:1)Changes in who buys the product and how they use it, changes in the long-term industry growth rate, and changes in cost and efficiency

2)Entry or exit of major firms, product innovation, and marketing innovation

3)Increases in the economic power and bargaining leverage of customers and suppliers, growing supplier-seller collaboration, and growing buyer-seller collaboration

4)Diffusion of technical know-how and changing societal concerns, attitudes, and lifestyles

5)Changes in manufacturing processes brought on by technological change, increasing globalization of the industry, and new Internet capabilities


Which of the following conditions acts to weaken buyer bargaining power?Question options:1)When buyers are unlikely to integrate backward into the business of sellers

2)When buyers are well informed about sellers' products, prices, and costs

3)When the costs incurred by buyers in switching to competing brands or to substitute products are relatively low

4)When buyers have the ability to postpone purchases if they don't like the prices offered by sellers

5)When buyers are few in number and/or often purchase in large quantities


Having good competitive intelligence about rivals' strategies, latest actions and announcements, resource strengths and weaknesses, and moves to improve their situation is important becauseQuestion options:1)it identifies who the industry's current market share leaders are.

2)it helps a company to anticipate what moves rivals are likely to make next and to craft its own strategic moves.

3)good scouting reports help identify which rival is in which strategic group.

4)it enables company managers to determine which rival has the worst strategy and how to avoid making the same strategy mistakes.

5)it enables more accurate predictions about how long it will take a particular rival to copy most of what the strategy leader is doing.


Which of the following is not a factor to consider in identifying an industry's dominant economic features?Question options:1)The market size, growth rate and prospects

2)The scope of competitive rivalry including geographic area

3)The market demand-supply conditions

4)How strong driving forces and competitive forces are

5)The role and pace of technological change


Which of the following is not a factor that causes buyer bargaining power to be stronger?Question options:1)Some buyers are a threat to integrate backward into the business of sellers

2)The industry is composed of a few large sellers and the customer group consists of numerous buyers that purchase in fairly small quantities

3)Buyers have considerable discretion over whether and when they purchase the product

4)Buyers are well informed about sellers' products, prices, and costs

5)The costs incurred by buyers in switching to competing brands or to substitute products are relatively low


A strategic group consists of those firms in an industry thatQuestion options:1)are subject to the same driving forces.

2)are placing about the same emphasis on each distribution channel.

3)use the same key success factors to differentiate their products.

4)employ similar competitive approaches and occupy similar positions in the market.

5)have similar size market shares.


Rivalry among competing sellers is generally more intense whenQuestion options:1)buyer demand is growing rapidly.

2)the industry's driving forces are strong and rivals have strongly differentiated products.

3)barriers to entry are moderately high and the pool of likely entry candidates is small.

4)industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit volume.

5)barriers to entry are high and buyer switching costs are high.


An industry's driving forcesQuestion options:1)are generally determined by competitive pressures, the sizes of strategic groups, and the power of rival firms' competitive strategies.

2)generally act in ways that will strengthen or weaken market demand, make competition more or less intense, and lead to higher or lower industry profitability.

3)frequently cause a leveling off of industry growth and a reduction in the bargaining power of buyers.

4)are normally triggered by ups and downs in the economy, higher or lower inflation rates, higher or lower interest rates, or important new strategic alliances.

5)can be triggered by such factors as growing competitive pressures from substitute products, greater seller-supplier collaboration, and the efforts of rival firms to employ new or different offensive strategies.

Attempt Score:28/30-93.33 %

Overall Grade(highest attempt):28/30-93.33 %

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