In which of the following instances is the rivalry among competing sellers generally weaker?
answer
When there are so many rivals that any one company's actions have little direct impact on the businesses of rivals and when rivals have low fixed costs and low inventory storage costs
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Which of the following are important considerations in evaluating whether an industry's outlook is conductive to good profitability?
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The industry's growth potential, the anticipated strength of competitive forces, and whether the industry and the company are being favorably or unfavorably impacted by macro-environmental factors
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Which of the following statements about the market maneuvering for buyer patronage that goes among rival sellers of a product or service is false?
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While there is constant jockeying among industry members to improve their market positions and profits, the current market leaders have a 90% or better chance of continuing their leadership and ultimately winning a sustainable competitive advantage over the other industry contenders
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Which of the following is not a typical competitive weapon that a company can use to battle rivals and attract buyers?
answer
Winning a bigger market share
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In evaluating whether potential entry is a strong or weak competitive force, it is important for company managers to consider
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whether entry barriers are high or low, the size of the pool or likely entry candidates and their resource capabilities, the expected reaction of industry members in defending against new entry, and how attractive the industry's growth and profit prospects are to potential entry candidates.
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Competitive pressures stemming from the threat of entry are stronger when
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entry barriers are low, the pool of entry candidates is large, and existing industry members are earning good profits
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While doing the necessary detective work can be tedious and time-consuming, studying the strategies and situation of rival companies (most especially close rivals) well enough to be able to anticipate many of their next moves has the big advantage of
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enabling managers to prepare effective countermoves (perhaps to even beat a rival to the punch) and take rivals' probable actions into account in crafting their own best course of action
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Driving forces analysis entails
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identifying what the driving forces are, assessing whether the drivers of change are, on the whole, acting to make the industry more or less attractive, and determining what strategy changes are needed to prepare for the impacts of the driving forces.
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The five-forces model of competition does not include
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competitive pressures triggered by the unexpected appearance on new industry key success factors
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Potential entrants are more likely to be deterred from actually entering an industry when
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industry incumbents are willing and able to launch strong defensive maneuvers to maintain their positions and make it harder for a newcomer to compete successfully and profitably
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As a rule, the stronger the collective impact of the give competitive forces,
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the lower the combined profitability of industry participants
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Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?
answer
Increases in supplier bargaining power, stagnant economic conditions, shifts in interest rates, increases in the prices of substitute products, and increased collaboration between industry members and their key suppliers
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In which of the following instances are industry members subject to stronger competitive pressures from substitute products?
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When substitutes are readily available, are attractively prices, and have comparable or better attributes and performance features
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Which of the following generally does not act to weaken the rivalry among competing sellers?
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A situation where one or two rivals have powerful strategies and other rivals are scrambling to stay in the game
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Which of the following is generally not considered as a barrier to entry?
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Weak brand preferences and low degrees of customer loyalty to existing brands
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Strategic group mapping is a technique for determining
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the different market positions that rival firms occupy in an industry and which companies are close competitors and which are distant competitors
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In which of the following circumstances are competitive pressures associated with the bargaining power of buyers not relatively strong?
answer
When buyer demand is growing rapidly and sellers' products are strongly differentiated
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Supplier bargaining power is weaker when
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industry members are major customers of their suppliers and the item being supplied is a standard item or commodity
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Which of the following questions is nor helpful in identifying an industry's key success factors?
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Which one of the five forces must any company in the industry absolutely be able to cope with and defend against successfully in order to survive and have a reasonable chance at earning a profit?
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Which of the following is not a major question to ask in gaining deep understanding about a company's industry and competitive environment?
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How big is the market for the industry's product/service and how fast is it growing?
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The strongest of the competitive forces int he five-forces model of competition is usually
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the competitive pressure associated with the market maneuvering and jockeying for buyer patronage among rival sellers in the industry
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A competitive environment where there is a strong rivalry among sellers, low entry barriers, strong competition from substitute products, and considerable bargaining leverage on the part of both suppliers and customers
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makes it hard for industry members to earn attractive profits
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Which of the following is not one of the five important "outer-ring" components of a company's macro-environment?
answer
The industry's profit outlook
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An industry's key success factors
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are the particular strategy elements, product attributes, resource strengths, competitive capabilities, and market achievements that spell the difference between being a strong competitor and a weak competitor -- and sometimes between profit and loss
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Which one of the following conditions weakens the competitive pressures associated with the threat of entry?
answer
Existing industry members have little interest in expanding their market reach by entering product segments or geographic areas where they currently do not have a presence
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Which one of the following is not a useful question for company managers to pose in trying to predict the likely actions of important rivals?
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Which competitors are in the best strategic group in the industry?
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Which of the following is generally not considered as a barrier to entry?
answer
Rapid market growth and weakly differentiated product offerings on the part of existing industry members
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Which of the following is not a typical competitive weapon that a company can use to battle rivals and attract buyers?
answer
Charging whatever price the industry leader is charging
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A very revealing indicator of whether potential entry is a strong or weak competitive force in the marketplace is
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whether the industry's grown and profit prospects are strongly attractive to potential entry candidates
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Which of the following is not generally a "driving force" capable of producing fundamental changes in industry and competitive conditions?
answer
Shifts upward or downward in interest rates, inflation rate, and unemployment rate
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Which of the following are important considerations in evaluating whether an industry's outlook is conductive to good profitability
answer
The industry's growth potential, the anticipated strength of competitive forces, and whether the industry and the company are being favorably or unfavorably impacted by macro-environmental factors
question
The concept of strategic groups is relevant to industry and competitive analysis because
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strategic group maps help identify which industry members are close rivals and which are distant rivals
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