Exam 5: Industry and Competitor Analysis

Which of Porter's five forces is most directly influenced by the number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs?

Firms that pursue a multidomestic strategy use the same basic approach in all foreign markets.

The price of prescription medicine is high, partly because when someone is sick there is no real alternative to buying medicine if they want to get better. Which of Porter's five forces explains how this aspect of the prescription medicine industry helps keep profitability high?

The three types of competitors a business will face are direct competitors, indirect competitors, and future competitors.

The two most common strategies pursued by firms in global industries are the ________ strategy and the ________ strategy.

A(n) ________ industry is one that is characterized by a large number of firms of approximately equal size.

Which of the following was NOT identified in the textbook as a nontraditional barrier to entry?

Shelly Brunner owns a sports-themed restaurant which is located in an upscale business district in Chicago. One advantage that Shelly has is that she bought the lot she built her restaurant on 25 years ago when lots in the area were selling for $50,000. Shelly knows that several potential competitors have looked at bare lots near her business but haven't been willing to pay the asking prices, which are as high as $500,000. Which of the six major sources of barriers to entry is causing a disincentive for new firms to enter Shelly's industry?

According to the textbook, the five competitive forces included in the Five Forces model determine the average ________.

Terry Washington recently started a new firm in the financial services industry. Prior to starting his firm, he spent considerable time doing research on the potential of the industry. The research that Terry was doing is called ________ analysis.

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

A(n) ________ is a group of firms producing a similar product or service, such as soft drinks, airlines, or smartphone apps.

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

An emerging industry is one that is characterized by a large number of firms of approximately equal size.

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

Industries that sell products to seniors, such as the eyeglass industry and the hearing aid industry, are benefiting from the aging of the population, which is an important ________ trend.

Many firms benefit from an increasing ability to outsource manufacturing or service functions to lower-cost foreign countries. This trend is referred to in the textbook as a(n) ________ trend.

The information that is gathered by a firm to learn about its competitors is referred to as ________.

According to the example provided in Chapter 5, www.1800contacts.com possesses a nontraditional barrier to entry referred to as ________.

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