Strategic management: Q6 Industry structure, complements, industry dynamics and convergence, and strategic groups

firms within the same industry

A strategic group will typically include:

direct competitors

Companies in the same strategic group are _____ to each other.

price-cutting

Competitive rivalry based solely on _____ is destructive to firms as it transfers most of the value created in the industry to the customer

Samsung's smartphones increase in value when they are pre-installed with Google's Android system.

In the smartphone industry, Google is a complementor to Samsung. Which of the following statements best explains why this is true?

Perfect competition

In which of the following industry competitive structures do selling firms have the lowest pricing power?

formerly unrelated industries begin to satisfy the same customer need.

Industry convergence is a process whereby:

horizontal mergers and acquisitions

A fragmented industry is made into a consolidated industry through:

While Classica Apparel Inc. will have some power to set the prices for its products, Beans Inc. will have little or no ability to do so.

Beans Inc. operates in a perfectly competitive agricultural industry. Classica Apparel Inc., in contrast, operates in a monopolistically competitive industry. Keeping this information in mind, which of the following statements is true?

monopolistically competitive industry

Curry Rush is a premium Asian restaurant chain that differentiates itself from a large number of competitors by providing exclusively organic Vietnamese cuisine. It has some pricing power because it provides differentiated products and therefore, has some entry barriers in place. In this scenario, Curry Rush is most likely operating in a(n) _____.

A premium rooftop restaurant in the same city

Golden Harvest is a restaurant located inside a five-star hotel. It caters mainly to customers who are concerned about quality dining rather than the prices. In this scenario, which of the following will be a part of Golden Harvest's strategic group?

By developing proprietary technology

How can a firm change its industry structure from monopolistically competitive or oligopolistic to a near monopoly?

Samsung's smartphones increase in value when they are pre-installed with Google's Android system

In the smartphone industry, Google is a complementor to Samsung. Which of the following statements best explains why this is true?

draw a strategic group map.

The final step in industry analysis is to:

achieve only competitive parity.

True Gold Inc. is a company that sells 24-carat gold biscuits to companies that manufacture jewelry. Since True Gold operates in an industry where many other firms also sell standardized products, it can most likely:

Differentiated products

Which of the following is a feature of a monopolistically competitive industry?

Computer hardware industry

Which of the following is an example of monopolistic competition?

The overall industry profitability will increase.

Which of the following is likely to happen due to horizontal mergers between competitors such as Delta and Northwest airlines?

Profitability varies between different strategic groups.

Which of the following statements is true about strategic groups

Competing against each other through price-cutting

Which of the following strategies will be most detrimental to firms that are close rivals operating in an oligopolistic industry structure?

The firms can differentiate their product offerings.

Why do firms operating in a monopolistically competitive industry have the power to raise the prices of their products or services?