A) the degree to which buyers have any bargaining preferences and the extent to which buyers are price sensitive.
B) how many buyers are engaged in collaborative partnerships with sellers.
C) whether entry barriers are high or low and the size of the pool of likely entry candidates.
D) whether the overall quality of the items being furnished by industry members is rising or falling.
E) whether demand-supply conditions represent a buyer's market or a seller's market.
G) A) and B)
Correct Answer
verified
Correct Answer
verified
A) it identifies who the industry's current market share leaders are.
B) it allows a company to anticipate what moves rivals are likely to make next and to craft its own strategic moves with some confidence.
C) it helps identify which rival is in which strategic group.
D) it enables company managers to determine which rival has the worst strategy and how to avoid making the same strategy mistakes.
E) it enables more accurate predictions about how long it will take a particular rival to copy most of what the strategy leader is doing.
G) None of the above
Correct Answer
verified
Correct Answer
verified
Correct Answer
verified
The five forces framework holds that competitive pressures on companies within an industry come from five sources. These include (1)competition from rival sellers, (2)competition from potential new entrants to the industry, (3)competition from producers of substitute products, (4)supplier bargaining power, and (5)customer bargaining power.
Correct Answer
verified
A) the firm, substitutes, suppliers, customers, and competitors.
B) the firm, suppliers, customers, competitors, and driving forces.
C) substitutes, suppliers, customers, competitors, and driving forces.
D) the firm, suppliers, customers, competitors, and complementors.
E) substitutes, suppliers, customers, competitors, and potential entrants.
G) B) and C)
Correct Answer
verified
Correct Answer
verified
A) Yellow Cab companies launching mobile app campaigns for community-connect and awareness.
B) Amazon launching a mobile delivery service via drones.
C) Apple launching a global network of driverless cars, buses, and trucks on demand via a mobile app.
D) Tesla and ZipCar announcing a joint venture for electric automobile sharing services.
E) Greyhound developing and marketing a mobile app for customers to purchase intercity bus tickets.
G) A) and B)
Correct Answer
verified
Correct Answer
verified
Correct Answer
verified
Driving-forces analysis has three steps:...View Answer
Correct Answer
verified
View Answer
Correct Answer
verified
Competitive pressures from substitutes a...View Answer
Correct Answer
verified
View Answer
A) Some buyers are a threat to integrate backward into the business of sellers and become an important competitor.
B) Buyers are small and numerous relative to sellers.
C) Buyers have considerable discretion over whether and when they purchase the product.
D) Buyers purchase the item frequently and are well-informed about sellers' products, prices, and costs.
E) The costs incurred by buyers in switching to competing brands or to substitute products are relatively low.
G) None of the above
Correct Answer
verified
Correct Answer
verified
A) microprocessors and laptops
B) automobiles and gasoline stations
C) theme parks and hotels
D) gyms and fitness equipment
E) newspapers and Internet news providers
G) D) and E)
Correct Answer
verified
Correct Answer
verified
A) are those competitive factors that most affect industry members' abilities to prosper in the marketplace-the particular strategy elements, product attributes, operational approaches, resources, and competitive capabilities that spell the difference between being a strong competitor and a weak one, and between profit and loss.
B) are determined by the industry's driving forces, which are essential to surviving and thriving in the industry.
C) hinge on how many different strategic groups the industry has operating within the industry and their level of profitability and sustainable advantages.
D) depend on how many rivals are trying to move from one strategic group to another without losing momentum.
E) are a function of such considerations as how many firms are in the industry, how many have market shares above 5 percent, and whether the business models being used are similar or diverse.
G) A) and D)
Correct Answer
verified
Correct Answer
verified
A) their costs to switch to competing brands or to substitute products are relatively high.
B) a particular seller's product delivers quality or performance that is very important to the buyer and is not matched by other brands.
C) they buy the product infrequently or in small quantities and are not particularly well-informed about sellers' products, prices, and costs.
D) buyer demand is growing rapidly.
E) buyers are price sensitive because the product represents a significant portion of their purchasing budget.
G) All of the above
Correct Answer
verified
Correct Answer
verified
A) there are relatively more industry key success factors.
B) the industry's driving forces are weak and rivals have mostly commodity products.
C) barriers to entry are moderately low and the pool of likely entry candidates is large.
D) rivals are wary of making fresh moves to lower prices, introduce new products, increase promotional efforts and advertising, and otherwise gain sales and market share.
E) buyers have many alternative products or services from which to choose.
G) A) and E)
Correct Answer
verified
Correct Answer
verified
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.
G) D) and E)
Correct Answer
verified
Correct Answer
verified
A) whether the profits of suppliers are relatively high or low.
B) the average number of suppliers that each seller/industry member purchases from.
C) how aggressively rival industry members are trying to differentiate their products.
D) whether demand for supplier products is high and they are in short supply.
E) whether the prices of the items being furnished by the suppliers are rising or falling.
G) A) and C)
Correct Answer
verified
Correct Answer
verified
A) changes in who buys the product and how they use it, and changes in the long-term industry growth rate
B) changes brought about by the entry or exit of major firms, product innovation, and marketing innovation and cost efficiency
C) changes in the economic power and bargaining leverage of customers and suppliers, growing supplier-seller collaboration, and growing buyer-seller collaboration
D) changes in buyer preferences for differentiated products instead of mostly standardized or identical products
E) changes in economies of scale and experience curve effects brought on by changes in manufacturing technology and new Internet capabilities
G) C) and D)
Correct Answer
verified
Correct Answer
verified
Correct Answer
verified
Competitive pressures from buyers increase when they have strong bargaining power and are price sensitive. Buyer bargaining power is stronger when:
•Buyer demand is weak in relation to industry supply.
•The industry's products are standardized or undifferentiated.
•Buyer costs of switching to competing products are low.
•Buyers are large and few in number relative to the number of industry sellers.
•Buyers pose a credible threat of integrating backward into the business of sellers.
•Buyers are well informed about the quality, prices, and costs of sellers.
•Buyers have the ability to postpone purchases.
Buyers are price sensitive and increase competitive pressures when:
•Buyers earn low profits or low income.
•The product represents a significant fraction of their purchases.
Competitive pressures from buyers decrease and become a weaker force under the opposite conditions.
Correct Answer
verified
A) reductions in uncertainty and business risk
B) changing societal concerns, attitudes, and lifestyles
C) diffusion of technical know-how across companies and countries
D) increasing efforts to collaborate closely with suppliers
E) advances in technology and manufacturing process innovation
G) B) and E)
Correct Answer
verified
D
Correct Answer
verified
Correct Answer
verified
Switching costs put a cap on how much in...View Answer
Correct Answer
verified
View Answer
Correct Answer
verified
Threat of entry is a stronger force when...View Answer
Correct Answer
verified
View Answer
A) the strength of the federal banking system.
B) the exogenous forces related to the general environmental demand.
C) social factors that could fuel a political agenda and create greater transparency.
D) bailouts and energy policies that are industry specific.
E) tax policy, fiscal policy, and tariffs providing impetus for antitrust matters.
G) B) and D)
Correct Answer
verified
Correct Answer
verified
Showing 1 - 20 of 137
Related Exams