Exam 6: Business-Level Strategy and the Industry Environment

When dealing with a declining industry, which of the following strategies should be used if a company has distinctive strengths that allow it to capture market share or if the speed of decline and the intensity of competition is moderate?

The real estate industry is comprised of different firms in several locations. Some are independent and popular locally, whereas others are affiliated to national chains. The real estate industry is most likely to be a(n):

The intensity of competition is greater in declining industries in which:

The rate of growth in the market is not affected by strategies chosen when considering the factors of relative advantage, complexity, compatibility, trialability, and observability.

A new product's relative advantage refers to the degree to which a new product is perceived as being better at satisfying customer needs than the product that it supersedes.

Which of the following is a market growth factor that refers to the degree to which the results of using and enjoying a new product can be seen and appreciated by other people?

An industry moves from the embryonic to the growth stage when:

Innovators and early adopters make up the largest market share percentage of the total market. The highest market demand and industry profits arise when they enter the market.

Which of the following statements about fragmented industries is true?

A firm may pursue a chaining strategy to:

Which of the following market growth factors that accelerates customer demand allows customers to experiment with a new product during a hands-on trial basis?

Customers who understand a new technology may have important future applications and are willing to experiment with it to see if they can pioneer new uses for the technology are called:

Tom tends to be ignorant about technological advancements. He was reluctant to own a smartphone even when they were well established and familiar in the market. However, Thomas slowly got used to the idea of a smartphone when his job demanded him to be connected to the office network all the time. Thomas is most likely to fall under which of the following categories of customers?

Mature industries generally adopt all of the following strategies and tactics EXCEPT:

Alpha Corporation owns and controls several retail outlets and is pursuing a strategy called franchising.

An app development firm is working on a new product to identify and consolidate a smartphone user's favorite and most-used apps into one place on the phone. If the new product will be sold to existing customers, the firm is pursuing a strategy of:

The highest market demand and industry profits arise when:

Tactical steps companies using a leadership strategy might initiate can include using aggressive pricing, acquiring established competitors to consolidate the industry and making new investments in productive capacity. aims at growing in a declining industry by picking up the market share of companies that are leaving the industry.

Effects of pursuing a harvest strategy include lowered employee morale, rapidly defecting customers and a faster decreasing market share than a company might initially expect.

A franchisor does not benefit from the franchisee's incentive to receive a return on their capital investments.