Questions on Business Competitive Landscape
1. A
Potential entrants are more likely to be deterred from actually entering an industry when A) incumbent firms have previously been aggressive in defending their market positions against entry. B) incumbent firms are complacent. C) buyers are not particularly price sensitive and the industry already contains a dozen or more rivals. D) the relative cost positions of incumbent firms are about the same, such that no one incumbent has a meaningful cost advantage. E) buyer switching costs are moderately low because of strong product differentiation among incumbent firms.
Points Earned: 1.0/1.0
2. B
Driving forces analysis A) 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 impacts of the driving forces. B) identifies which strategic group is the most powerful. C) helps managers identify which industry member is likely to become (or remain) the industry leader and why. D) helps managers identify which key success factors are most likely to help their company gain a competitive advantage. E) helps managers identify which of the five competitive forces will be the strongest driver of industry change.
Points Earned: 0.0/1.0
3. E
The best test of whether potential entry is a strong or weak competitive force is A) the strength of buyer loyalty to existing brands. B) whether the industry's driving forces make it harder or easier for new entrants to be successful. C) whether the strategies of industry members are well-matched to the industry's key success factors. D) whether there are any vacant spaces on the industry's strategic group map. E) to ask if the industry's growth and profit prospects are strongly attractive to potential entry candidates.
Points Earned: 1.0/1.0
4. A
The competitive threat that outsiders will enter a
Potential entrants are more likely to be deterred from actually entering an industry when A) incumbent firms have previously been aggressive in defending their market positions against entry. B) incumbent firms are complacent. C) buyers are not particularly price sensitive and the industry already contains a dozen or more rivals. D) the relative cost positions of incumbent firms are about the same, such that no one incumbent has a meaningful cost advantage. E) buyer switching costs are moderately low because of strong product differentiation among incumbent firms.
Points Earned: 1.0/1.0
2. B
Driving forces analysis A) 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 impacts of the driving forces. B) identifies which strategic group is the most powerful. C) helps managers identify which industry member is likely to become (or remain) the industry leader and why. D) helps managers identify which key success factors are most likely to help their company gain a competitive advantage. E) helps managers identify which of the five competitive forces will be the strongest driver of industry change.
Points Earned: 0.0/1.0
3. E
The best test of whether potential entry is a strong or weak competitive force is A) the strength of buyer loyalty to existing brands. B) whether the industry's driving forces make it harder or easier for new entrants to be successful. C) whether the strategies of industry members are well-matched to the industry's key success factors. D) whether there are any vacant spaces on the industry's strategic group map. E) to ask if the industry's growth and profit prospects are strongly attractive to potential entry candidates.
Points Earned: 1.0/1.0
4. A
The competitive threat that outsiders will enter a