Question 1

The primary opportunity existing for startups in emerging industries is to:

Accepted Answer

A)   consolidate the industry and establish industry leadership as a result of doing do
B)   win customers by placing an emphasis on service and process innovation
C)   pursue a niche strategy, which focuses on a narrow segment of the industry that might be encouraged to grow through product or process innovation
D)   capture a first-mover advantage
E)   pursue a cost reduction strategy, which is accomplished through achieving lower costs than industry incumbents through process innovationF) C) and D)
G) B) and C)

Question 2

Which of the Porter's five-forces is most closely associated with the concept "barrier to entry"?

Accepted Answer

A)   bargaining power of suppliers
B)   rivalry among existing firms
C)   threat of new entrants
D)   bargaining power of buyers
E)   threat of substitutesF) C) and D)
G) B) and D)

Question 3

Each quarter, Tammy Anderson, who owns a chain of floral shops, does a detailed analysis of her firm's competitors. This analysis is called:

Accepted Answer

A)   competitor analysis
B)   challenger analysis
C)   strategic analysis
D)   participant analysis
E)   industry analysisF) A) and D)
G) C) and E)

Question 4

The three different types of competitors a business will face are direct competitors, indirect competitors, and:

Accepted Answer

A)   future competitors
B)   nonstop competitors
C)   occasional competitors
D)   fragmented competitors
E)   irregular competitorsF) C) and E)
G) A) and B)

Question 5

Henry Jones recently launched a firm in the clothing industry, targeting teens ages 13-17. One thing Henry thinks he has accomplished is producing products that have universal appeal, so he will not vary his approach from country to country. Henry is pursuing a ________ strategy.

Accepted Answer

A)   universal
B)   multidomestic
C)   contemporary
D)   global
E)   homeF) All of the above
G) A) and B)

Question 6

A fragmented industry is one that is characterized by a small number of firms or approximately equal size.

Accepted Answer

A) True 
 B)False

Question 7

In the context of competitor analysis, ________ are companies that are not yet direct or indirect competitors but could move into one of these roles at any time.

Accepted Answer

A)   stable competitors
B)   roundabout competitors
C)   impending competitors
D)   approximate competitors
E)   future competitorsF) A) and E)
G) D) and E)

Question 8

What is competitive intelligence? What are some of the ways that a firm can ethically obtain information about its competitors?

Accepted Answer

The information that is gathered by a fi...

Question 9

Business trends include economic trends, social trends, technological advances, and political and regulatory changes.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not one of the major sources of barriers to entry?

Accepted Answer

A)   economies of scale
B)   cost advantages independent of size
C)   buyer group concentration
D)   access to distribution channels
E)   government and legal barriersF) A) and B)
G) B) and D)

Question 11

According to the textbook, Nucor in steel, JetBlue in airlines, and Cirque du Soleil in circuses are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

Accepted Answer

A)   fragmented
B)   emerging
C)   declining
D)   global
E)   matureF) D) and E)
G) A) and B)

Question 12

According to the textbook, Sprig Toys in toys, Tesla Motors in automobiles, and Daisy Rock in guitars are example of entrepreneurial firms who are exploiting opportunities in ________ industries.

Accepted Answer

A)   emerging.
B)   fragmented
C)   declining
D)   mature
E)   emergingF) A) and E)
G) A) and B)

Question 13

According to the textbook, how do well-managed firms respond to the five-forces that determine industry profitability?

Accepted Answer

A)   They switch industries if the forces are too compelling.
B)   They focus on one force intently and excel by overcoming that force.
C)   They overcome each of the forces.
D)   They ignore the forces.
E)   They try to position their firms in a way that avoids or diminishes the forces.F) C) and E)
G) A) and C)

Question 14

A competitive analysis grid is a tool for organizing the information a firm collects about its competitors.

Accepted Answer

A) True 
 B)False

Question 15

In the context of competitor analysis, businesses that offer identical or similar products are referred to as:

Accepted Answer

A)   immediate competitors
B)   direct competitors
C)   indirect competitors
D)   straight competitors
E)   urgent competitorsF) D) and E)
G) B) and C)

Question 16

The primary opportunity available to firms in fragmented industries is consolidation.

Accepted Answer

A) True 
 B)False

Question 17

According to the textbook, the first step in a competitor analysis is to:

Accepted Answer

A)   develop a marketing plan
B)   develop the strategic plan
C)   study the strength of the industry
D)   study the external environment
E)   determine who the competition isF) C) and E)
G) B) and D)

Question 18

In various studies, researchers have found that from ________ of the variation in firm profitability is directly attributable to the industry in which a firm competes.

Accepted Answer

A)   4 to 12 percent
B)   8 to 30 percent
C)   18 to 42 percent
D)   22 to 56 percent
E)   34 to 70 percentF) B) and D)
G) C) and D)

Question 19

Andrew Banks recently started a new firm in the snack food industry. Prior to starting his firm, he spent considerable time doing research on the potential of the snack food industry. The research that Andrew was doing is called:

Accepted Answer

A)   industry analysis
B)   sector analysis
C)   network analysis
D)   business analysis
E)   division analysisF) A) and B)
G) B) and C)

Question 20

The two trends that are most important to focus on in an industry analysis are business trends and environmental trends.

Accepted Answer

A) True 
 B)False

Exam 5: Industry and Competitor Analysis

According to the textbook, Sprig Toys in toys, Tesla Motors in automobiles, and Daisy Rock in guitars are example of entrepreneurial firms who are exploiting opportunities in ________ industries.

Correct AnswerverifiedShow Answer

What is competitive intelligence? What are some of the ways that a firm can ethically obtain information about its competitors?

Correct AnswerverifiedThe information that is gathered by a fi...View AnswerShow Answer

The three different types of competitors a business will face are direct competitors, indirect competitors, and:

Correct AnswerverifiedShow Answer

Which of the following is not one of the major sources of barriers to entry?

Correct AnswerverifiedShow Answer

According to the textbook, Nucor in steel, JetBlue in airlines, and Cirque du Soleil in circuses are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

Correct AnswerverifiedShow Answer

Henry Jones recently launched a firm in the clothing industry, targeting teens ages 13-17. One thing Henry thinks he has accomplished is producing products that have universal appeal, so he will not vary his approach from country to country. Henry is pursuing a ________ strategy.

Correct AnswerverifiedShow Answer

In various studies, researchers have found that from ________ of the variation in firm profitability is directly attributable to the industry in which a firm competes.

Correct AnswerverifiedShow Answer

According to the textbook, how do well-managed firms respond to the five-forces that determine industry profitability?

Correct AnswerverifiedShow Answer

Andrew Banks recently started a new firm in the snack food industry. Prior to starting his firm, he spent considerable time doing research on the potential of the snack food industry. The research that Andrew was doing is called:

Correct AnswerverifiedShow Answer

Which of the Porter's five-forces is most closely associated with the concept "barrier to entry"?

Correct AnswerverifiedShow Answer

The primary opportunity existing for startups in emerging industries is to:

Correct AnswerverifiedShow Answer

Business trends include economic trends, social trends, technological advances, and political and regulatory changes.

Correct AnswerverifiedShow Answer

According to the textbook, the first step in a competitor analysis is to:

Correct AnswerverifiedShow Answer

The primary opportunity available to firms in fragmented industries is consolidation.

Correct AnswerverifiedShow Answer

The two trends that are most important to focus on in an industry analysis are business trends and environmental trends.

Correct AnswerverifiedShow Answer

In the context of competitor analysis, ________ are companies that are not yet direct or indirect competitors but could move into one of these roles at any time.

Correct AnswerverifiedShow Answer

A fragmented industry is one that is characterized by a small number of firms or approximately equal size.

Correct AnswerverifiedShow Answer

In the context of competitor analysis, businesses that offer identical or similar products are referred to as:

Correct AnswerverifiedShow Answer

Each quarter, Tammy Anderson, who owns a chain of floral shops, does a detailed analysis of her firm's competitors. This analysis is called:

Correct AnswerverifiedShow Answer

A competitive analysis grid is a tool for organizing the information a firm collects about its competitors.

Correct AnswerverifiedShow Answer

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The information that is gathered by a fi...
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