MGMT 3850: Chapter 5

Which of the following is not one of the sources of competitive intelligence?

Analyzing financial reports of privately-held companies

All of the following responses result in a decision to reconsider the new venture except

Answering yes to "Is the industry a realistic place for a new venture?"

Trade __________ are organizations that firms in the same industry form for the purpose of collecting and disseminating trade information, promoting industry-related issues, and providing a variety of member services.

Associations

____is not one of Porter's five forces.

Bargaining power of sellers

Which of the following is NOT a force as per the five forces​ model?

Bargaining power of stockholders

A​ _____ is a condition that creates a disincentive for a new firm to enter an industry.

Barrier to entry

The ability of firms in some industries to benefit from an increasing ability to outsource manufacturing or service functions to​ lower-cost foreign labor markets is an example of​ a(n) _____ trend.

Business

Environmental trends include all of the following except _________.

Business Trends

Prior to launching his​ Korean-Mexican fusion​ restaurant, Gregory Kim is making a detailed evaluation of the restaurants in his market area. Gregory Kim is doing a​ ____ analysis.

Competitor

A(n) __________ is best described as a detailed evaluation of a firm's competitors

Competitor Analysis

​A(n) _____ industry is an industry or a part of an industry that is experiencing a reduction in demand.

Declining

_____ competitors are businesses that offer products or services that are identical or highly similar to those of the firm in question.

Direct

Which of the following is not one of the five most prevalent industry types?

Disruptive

Economic​ trends, ____​ trends, technological​ advances, and political and regulatory changes are the most important environmental trends for entrepreneurs to study.

Social

_____ is the final step in using the five forces model to determine industry attractiveness.

Use the table to identify the threats that are most often relevant to industry profitability

Which of the following statements about Porter's five forces model is not true?

Well-managed companies try to position their firms in a way that enhances or increases Porter's five forces.

It is useful for a new venture to think about its position at both the​ _____ level and the product or service level.

company

Once a firm decides to enter an industry and chooses a market in which to​ compete, it must gain an understanding of its​ _____ environment

competitive

​A(n) _____ industry is one in which standard operating procedures have yet to be developed.

emerging

​Microsoft's power as a supplier of computer operating systems is​ ____ by the threat that it might enter the PC industry if PC makers balk too much at the cost of its software.

enhanced

An industry is best defined as a group of _________.

firms producing a similar product or service

​A(n) ________ advantage is a sometimes insurmountable advantage gained by the first company to establish a significant position in a new market.

first-mover

A geographic​ roll-out opportunity is available in​ a(n) ______ industry.

fragmented

Completing a competitive analysis grid has all of the following benefits except __________

identify all direct, indirect, and future potential competitors

Firms offering close substitutes to the product the firm completing the analysis sells are best described as _________

indirect

For Pepsi, milk, tea, and bottled water are ___ competitors

indirect

The five forces models looks at forces that determine _____profitability

industry

In various studies, researchers have found that between 8 to 30 percent of the variation in firm profitability is directly attributable to the _________.

industry in which a firm competes

The consumer milk industry in the United States over the last few years is characterized by slow​ growth, repeat​ (rather than​ new) customers, and limited product innovation. This industry is an example of​ a(n) ______ industry.

mature

When a firm varies its product or service offerings to meet the demands of the local​ market, it is pursuing a​ _____ strategy.

multidomestic

An emerging industry is best described as a(n) ________.

new industry in which standard operating procedures have yet to be developed

Indirect competitors are best described as firms _________.

offering close substitutes to the product the firm completing the analysis sells

All of the following are examples of environmental trends except the ability to _________

outsource to lower-cost foreign markets

It is useful for a new venture to think about its _______ at both the company level and the product or service level.

position

Mature industries are characterized by all of the following except ________

reduction in demand

which of the following is NOT a barrier to entry

stakeholder holdout

The bargaining power of buyers is lowest when ________.

suppliers' products are differentiated

If you answer "no" to the question "is the industry a realistic place for a new venture?", you should _________.

Reconsider a new venture

The growth rate of the e-book industry has slowed down in the last two years. Which of the five forces is this likely to affect?

Rivalry among existing firms

The level of fixed costs and degree of difference between products are primary factors that determine the nature and intensity of _________.

Rivalry among existing firms in an industry

The five forces model helps one understand the​ ___ of an industry.

Dynamics

A(n) ____ industry is one that is characterized by a large number of firms of approximately equal size

Fragemented

The ideal barrier to entry is a patent, trademark, or copyright, which prevents another firm from duplicating what the start-up is doing. This is an example of a _________ barrier.

Government and legal

Industries with​ ___ fixed costs have a high degree of intensity of rivalry.

High

Which of the following statements about the bargaining power of buyers is true?

If the buyers are concentrated, they can pressure the suppliers to lower costs.

​Coffee, milk,​ tea, and water are​ ______ competitors for​ Coca-Cola.

Indirect

It is useful for a new venture to think about its​ _____ at both the company level and the product or service level.

Position

The five forces in the five forces model determine the threat to industry​ _______.

Probability

A fragmented industry is best characterized by a(n) _______

Large number of firms of approximately equal size

At the company​ level, a​ firm's ____ determines how the company is situated relative to its competitors.

Launch

Which of the following is not one of the primary factors that determine the nature and intensity of the rivalry among existing firms in an industry?

Level of variable costs

In analyzing the pharmaceutical industry for a prospective business​ launch, Nicole​ Turco, a Ph.D. in​ pharmacology, concluded that the industry was attractive because the threat of substitutes is​ ___________

Low

A(n) __________ industry is one experiencing slow or no increase in demand, has numerous repeat customers, and has limited product innovation.

Mature

The greater the importance of an item is to a​ buyer, the​ _____ the buyer will be to the price.

More sensitive

In contemplating the launch of her seafood​ restaurant, Paige Graham concluded that suppliers of seafood had an advantage in bargaining power over restaurant owners in her market.​ Paige's conclusion is likely to have happened because there were​ __________ suppliers to provide a critical product to a large number of restaurants

Only a few

All of the following factors affect buyers' ability to exert pressure on suppliers except

Threat of forward integration

Access to distribution channels are a relevant factor in which of the five forces?

Threat of new entrant

Threat of​ ____ integration increases the bargaining power of buyers.

backward

Switching costs, attractiveness of substitutes, and the threat of forward integration are factors that impact the ___________ and suppress profitability of the industries they serve.

bargaining power of suppliers

The five forces model help a firm determine whether it should enter a particular industry and whether it can

carve out an attractive position in that industry

All of the following are the most prevalent types of industries except ________ industries.

casual

A leadership strategy in which a firm tries to become the dominant player in the industry is a strategy that works in​ ____ industries.

declining

The renting of DVDs and video games by mail is an example of​ a(n) ____ industry.

declining

John Banega developed a drug that offers a potential cure for pediatric blindness.​ However, he finds a number of government and legal issues that make it difficult for him to launch his drug company. Which of the following force is he facing in the five forces model of industry​ analysis?

threat of new entrants

If a business leader decides to hold a Skype conference instead of traveling to the customer due to the increasing cost of airfare, this is an example of the _________

threat of substitutes

The experience, atmosphere, and service that Starbucks has created in its stores so customers will not buy a lower-priced coffee from a competitor is an example of its attempt to diminish the __________.

threat of substitutes