Ch.7 5 Forces

What is a competitive advantage?

A feature of a product or service on which customers place a greater value than they do on similar offerings from competitors.

Which of the below is not one of Porter's Five Forces?

Manager power

Which of the below represents knowledge?

Skills, experience, and expertise, coupled with information and intelligence that creates a person's intellectual resources

Steve Jobs and Apple created a big advantage in the technology industry with the introduction of the iPod, iPhone, and iPad. What are these all examples of?

Competitive advantage Competitive intelligence First-mover advantage All of the above

All of the following are common tools used in industry to analyze and develop competitive advantages, except:

Competitive analysis model

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's Five Forces model. Which of the following represents buyer power in the soft drink industry?

Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.

A business strategy achieves a specific set of goals which include

Attracting new customers, developing new products or services.

Kevin Campbell is an incoming freshman at your college. Kevin is frustrated by the cost of books, tuition, and expenses and he also needs to purchase a rather expensive laptop. In an effort to save money, Kevin beings a Facebook group finding other college students who need to purchase laptops. Soon, Kevin's Facebook group has close to 100,000 students. Kevin decides to collectively approach different computer companies to see if his group qualifies for a special discount. What business strategy is Kevin using to purchase laptops?

Increasing buyer power.

Which of the below represents business intelligence?

Information collected from multiple sources that analyzes patterns, trends, and relationships for strategic decision making

Why do students need to study information technology?

Information technology is everywhere in business Information technology is frequently discussed in business Information technology is frequently used in organizations All of the above

Jennifer Bloom is writing a paper and she must determine which of Porter's three generic strategies The Museum Company has implemented. Jennifer finds out that The Museum Company offers specialty products found only in museums around the world to affluent customers. What would Jennifer determine The Museum Company is using as its generic strategy?

Narrow market, high cost.

John Cleaver is the CEO of Tech World, which is a retail store that sells computers, monitors, cameras, televisions and many other electronic products. John and his executive team are meeting to brainstorm new ideas on how to grow the business. One idea is to mimic a competitor's product that is attempting to sell a new product in a different industry. After performing a Porter's Five Forces analysis John determines that all of the forces are high in this new industry. What should John do?

Not introduce the product because all five forces are strong and this would be a highly risky business strategy.

How can a company reduce the threat of substitute products or services?

Offer additional value through wider product distribution.

Some industries' competition is much more intense than others. Retail grocery stores such as Ralphs, Vons, and Albertson's in the United States experience fierce competition and offer similar marketing campaigns to compete. What is this an example of in terms of Porter's Five Forces?

Rivalry among existing competitors.

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter. Which of the following is not included as one of Porter's three generic strategies?

Supplier cost differentiation.

Shawn McGill is on the executive board for ABC pharmaceuticals. The company produces the number one selling cancer fighting drug on the market. Due to its incredible success ABC pharmaceuticals has decided to increase the cost of the drug from $8 a pill to $15 a pill. Which force is ABC pharmaceutical using to increase its drug price?

Supplier power.

What are costs that make customers reluctant to switch to another product or service?

Switching costs.

What includes support value activities and primary value activities and is used to determine how to create the greatest possible value for customers?

The Value Chain analysis.

Which of the following represents a reason why competitive advantages are typically temporary?

The competitor will hire away your key employees. The competitor quickly seeks ways to duplicate your business operations. The competitor will purchase new technology. All of the above.

Which of the following is included in Porter's Five Forces Model?

The power of competitors.