Exam 6: Business-Level Strategy and the Industry Environment

The strategy in a mature industry to invest in infrastructure that would be cost-prohibitive for new entrants to deter new competition from entering the market is known as:

Fragmented industries typically have high barriers to entry.

How can a company take advantage of viral diffusion in a rapidly growing market?

Most embryonic industries emerge from:

The late majority customers are typically reached through specialized distribution channels, and products are often sold by word of mouth.

The goal for a company in the growth stage of the industry life cycle is to maintain its relative competitive position in a rapidly expanding market.

Which of the following statements about customer categories in growing industries is true?

Which of the following is NOT an example of a fragmented industry?

Intensifying competition in a declining industry is dependent on which four factors? Explain how these factors are considered when a company chooses a strategy in a declining industry.

Market penetration involves the creation of new or improved products to replace existing products.

A company uses which of the following when it focuses on pockets of demand that are declining more slowly than the industry as a whole to maintain profitability?

Nutrimax Corp., a breakfast cereal company, has designed extensive and elaborate advertising campaigns for its existing products. The campaigns mainly focus on the features and benefits of the products that differentiate the cereals from the competition. Nutrimax Corp. is most likely to be using which of the following strategies?

The strategy that company should pursue for the first group of customers to enter the market for a new product

To compete in the fragmented restaurant industry, Starbucks built, and now operates, hundreds of restaurants across the United States and Canada. Which of the following strategies is Starbucks using?

Which of the following is a disadvantage of franchising?

Explicit price leadership, when companies jointly set prices, is illegal under antitrust laws.

In a bid to expand its business and build a national brand, Omega Inc. has acquired several competing outlets in different locations. All the outlets are responsible for the production of smaller components. Omega believes that having a larger enterprise that can offer a full portfolio of products, it can gain an edge over smaller rivals when selling to other companies. Which of the following strategies has Omega Inc. most likely used?

What are the factors that cause the variation in market growth rates for different products? Evaluate whether these factors result in accelerating or retarding the rate at which a market grows.

A company pursuing a market development strategy can use the brand name it has developed in one market segment to locate new market segments in which to compete.

Which of the following factors of a product tends to accelerate customer demand for it?