Exam 2: External Analysis: the Identification of Opportunities and Threats

Common exit barriers include all the following EXCEPT:

Movement between strategic groups is restricted by mobility barriers such as whether it is cost-effective to try to imitate or outperform competitors within the strategic group.

The level of industry demand:

Companies facing higher exit barriers find it harder to reduce capacity and face a greater threat of severe price competition.

Entry barriers in embryonic industries tend to be based on:

Julian was asked to examine the demographic forces facing his employer, a clothing manufacturer. Which of the following factors is Julian most likely to examine?

Cost reductions gained through mass-producing a standardized output are a source of scale economies.

Technological change can represent both an opportunity and a threat.

Briefly describe the five stages of the industry life cycle.

The more commodity-like that an industry's product is, the lower the intensity of any price war that may develop.

Mobility barriers:

Identify the six forces that shape competition in an industry. Describe how changes in the strength of these forces affects prices, profitability, and under which circumstances each can be considered a threat or opportunity. Why is a competitive analysis using the competitive forces framework a benefit to industry?

Porter's Five Forces model did not recognize the:

Due to a recent relaxation in the pollution control laws by the government, Alpha Motors has reduced the production of its electric-powered cars. The company is responding to a change in which of the following macroenvironmental forces?

Consider the macroenvironment facing a large, international airline headquartered in the United States (such as American Airlines or United Airlines). Give at least three examples of important trends or events from each of the segments of the airline's macroenvironment (macroeconomic, global, technological, demographic, social, political, and legal), and explain whether each represents a threat or an opportunity for the firm.

The punctuated equilibrium view can be described as a freezing, but not an unfreezing, process in an industry's life cycle.

Describe the major limitations of the models for industry analysis. Does the existence of these limitations mean that the models are not useful? Why or why not?

Philip Morris capitalized on the growing health consciousness trend when it acquired Miller Brewing Company, and then redefined competition in the beer industry with its introduction of low-calorie beer (Miller Lite). This health trend represents which type of force?

What makes up the competitive structure of an industry?

Companies operating in high-technology industries are dependent on complementary products for their mutual success.