MGT- Chapter 4

Benchmarking is _____

working with and learning from a company outside one's industry that has a particular skill that is potentially critical

The product or service must meet ___ in order to develop into a competitive advantage.

All four of the criteria

Which of the following statements regarding exact or direct competitors are correct?

Identifying direct competitors is easier when entrepreneurs are clear regarding their customers needs. Direct competitors can be found via Google Maps (or equivalent) Often, direct competitors are geographically local

Which of the following are reasons why an entrepreneur should develop his or her own competitive map?

It will help in developing insights regarding positioning, pricing, and even facility layout. It provides the entrepreneur with understanding of what is right and wrong with each competitor. It is less expensive.

Which of the following is NAICS an acronym of?

North American Industry Classification System

what is the key to effective opportunity recognition by an entrepreneur?

a detailed understanding of the external environment

A common cause of new business failure is ____ on its competitive advantage

a lack of focus

A competitive ____ is the edge a business has over competing businesses

advantage

An entrepreneur should start a business based on ____

an opportunity

entrepreneurs should be ____ in defining their customers

as accurate as possible

Exact competitors are ____

businesses that directly compete for the same ideal customers.

When products or services are rare, durable, relatively non substitutable, and valuable, they can develop a ____

competitive advantage

An effective industry analysis starts by identifying every potential _____ within a defined distance of the new business's

competitor

entrepreneurs should define the industry broadly enough to be inclusive of all potential _______

competitors

Elasticity of demand is the _____

consumer's response to price changes

When entrepreneurs can easily exit an industry, the intensity of industry competition tends to _____

decrease and the threat posed by new entrants is reduced.

Products or services that are considered rare have qualities that competitors find ____

difficult to obtain

A product or service that is ____ provides the company with the ability to hold onto the competitive advantage

durable

Resources-based analysis examines which of the following criteria that products of services must meet?

durable valuable rare

A(n) ____ ______ keeps an entrepreneur from leaving a business they invested in

exit barrier

Knowing one's customer is _____ for the effective use of marketing dollars.

important

entrepreneurs should be careful to no be so broad that they ____

include customer groups not likely to shop at their business

Associations exist to support and promote their _____

industry

A product that customers are willing to pay virtually any price for has a very ____ demand

inelastic

Which of the following statements are true about business's competitive map?

its purpose is to better understand competitors and their capabilities. it is part of the business's external analysis

Many companies that are not potential competitors are willing to help industry outsiders improve their operations by sharing their______

knowledge

Understanding the business's competitive advantage is the ____ step in an external analysis

last

Trends shape the _______ -term prospects of the given industry

long

"Relatively ____" is a determination about whether a service or a product may be easily substituted by something else that a competitor could provide.

non substitutable

Which of the following are examples of substitutes for playing soccer?

playing basketball, tennis, and handball

A ____ product or service describes a quality that competitors will find difficult to obtain

rare

Products or services that are relatively ____ are those that competitors cannot easily substitute

rare

A reasonable distance is determined by _____

the entrepreneur

Reliable industry-specific information can be found in which of the following sources?

the internet magazines journals

Which of the following statements are true about the normal or ordinary parts of a business?

they must be done and done well There is little reasons to do any of the normal or ordinary parts of a business better than the average in the industry

Identify the true statements about unusual or unique part of a business

they provide a means for the business to differentiate itself from its competitors they are central to the competitive advantage

An important part of a competitor's analysis is gaining an understanding of the industry's _____

trends

entrepreneurs must _____

understand why customers choose their business and focus on those advantages

The ___ step of conducting an external analysis is determining the industry in which the new business will compete.

First

_____ analysis is a theoretical approach and practical methodology that examines business functions in terms of whether a product or service meets the criteria of being rar, durable, non substitutable, and valuable simultaneously

Resource-based

Which of the following are the three elements that describe how durability helps businesses hold onto the competitive advantage?

The length of time that a business might be able to gain and hold a competitive advantage. How long it would take for a competitor to imitate the product/service or to wash away the business's advantage. The desire of competitors to compete with the business using the same potential resource or capability.