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