Question 1

The primary opportunity existing for startups in fragmented industries is to ________.

Accepted Answer

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

Question 2

A(n) ________ industry is an industry that is experiencing slow or no increase in demand.

Accepted Answer

A)  declining 
B)  global 
C)  mature 
D)  emerging 
E)  fragmented 
A)  declining 
B)  global 
C)  mature 
D)  emerging 
E)  fragmented

Question 3

Tim Rutherford is thinking about starting a firm in the medical equipment industry. In the industry analysis Tim has been conducting, one thing he has noticed is that the medical equipment industry is characterized by buyer group concentration. This factor concerns Tim because it tells him that the profitability of the medical equipment industry is potentially suppressed by the ________.

Accepted Answer

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

Question 4

A fragmented industry is a new industry in which standard operating procedures have yet to be developed.

Accepted Answer

A) True 
 B)False

Question 5

A comparison analysis is a detailed evaluation of a firm's competitors.

Accepted Answer

A) True 
 B)False

Question 6

The five competitive forces model is a framework for understanding the structure of an industry.

Accepted Answer

A) True 
 B)False

Question 7

An industry is a group of firms producing a similar product or service, such as tires, life insurance, or smartphone apps.

Accepted Answer

A) True 
 B)False

Question 8

Amy has just launched a firm in the sports drink industry. She has decided to complete a grid to see how she stacks up against her competitors. Along the horizontal axis of the grid she lists her firm along with her major competitors. Along the vertical axis of the grid she lists the main competitive factors in her industry. Amy is completing a ________.

Accepted Answer

A)  strategic analysis spreadsheet 
B)  tactical analysis framework 
C)  competitive analysis grid 
D)  strategic analysis grid 
E)  behavioral analysis spreadsheet 
A)  strategic analysis spreadsheet 
B)  tactical analysis framework 
C)  competitive analysis grid 
D)  strategic analysis grid 
E)  behavioral analysis spreadsheet

Question 9

Each quarter, Craig Anderson, who owns a chain of auto repair shops, does a detailed analysis of his firm's competitors. This analysis is called ________ analysis.

Accepted Answer

A)  competitor 
B)  challenger 
C)  strategic 
D)  participant 
E)  industry 
A)  competitor 
B)  challenger 
C)  strategic 
D)  participant 
E)  industry

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

If the buyers are concentrated and they buy from a large number of suppliers, then the bargaining power of buyers is increased.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  immediate 
B)  direct 
C)  indirect 
D)  straight 
E)  urgent 
A)  immediate 
B)  direct 
C)  indirect 
D)  straight 
E)  urgent

Question 13

WriteLab, the company profiled in the opening feature of Chapter 5, believes it has created a barrier to entry to enable it to maintain a leadership position in the education industry. Its barrier to entry is ________.

Accepted Answer

A)  the price-point of its product 
B)  the strength of its brand 
C)  its social mission 
D)  its economies of scale 
E)  that Donald McQuade, one of its co-founders, is well-established in the writing community 
A)  the price-point of its product 
B)  the strength of its brand 
C)  its social mission 
D)  its economies of scale 
E)  that Donald McQuade, one of its co-founders, is well-established in the writing community

Question 14

Kellen West recently launched a firm in the fruit drink industry, and has already exported his fruit drinks to 11 different countries. One thing that Kellen's firm is doing is that it is varying the tastes of the fruit drinks it sells on a country-by-country basis to meet the demands of the local markets. Kellen's firm is pursuing a ________ strategy.

Accepted Answer

A)  global 
B)  home 
C)  universal 
D)  contemporary 
E)  multidomestic 
A)  global 
B)  home 
C)  universal 
D)  contemporary 
E)  multidomestic

Question 15

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

The primary opportunity existing for startups in fragmented industries is to ________.

A(n) ________ industry is an industry that is experiencing slow or no increase in demand.

A fragmented industry is a new industry in which standard operating procedures have yet to be developed.

A comparison analysis is a detailed evaluation of a firm's competitors.

The five competitive forces model is a framework for understanding the structure of an industry.

An industry is a group of firms producing a similar product or service, such as tires, life insurance, or smartphone apps.

Each quarter, Craig Anderson, who owns a chain of auto repair shops, does a detailed analysis of his firm's competitors. This analysis is called ________ analysis.

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

If the buyers are concentrated and they buy from a large number of suppliers, then the bargaining power of buyers is increased.

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

WriteLab, the company profiled in the opening feature of Chapter 5, believes it has created a barrier to entry to enable it to maintain a leadership position in the education industry. Its barrier to entry is ________.

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

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Writing a Business Plan

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New-Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters

Exam 5: Industry and Competitor Analysis

The primary opportunity existing for startups in fragmented industries is to ________.

A(n) ________ industry is an industry that is experiencing slow or no increase in demand.

A fragmented industry is a new industry in which standard operating procedures have yet to be developed.

A comparison analysis is a detailed evaluation of a firm's competitors.

The five competitive forces model is a framework for understanding the structure of an industry.

An industry is a group of firms producing a similar product or service, such as tires, life insurance, or smartphone apps.

Each quarter, Craig Anderson, who owns a chain of auto repair shops, does a detailed analysis of his firm's competitors. This analysis is called ________ analysis.

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

If the buyers are concentrated and they buy from a large number of suppliers, then the bargaining power of buyers is increased.

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

WriteLab, the company profiled in the opening feature of Chapter 5, believes it has created a barrier to entry to enable it to maintain a leadership position in the education industry. Its barrier to entry is ________.

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

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Writing a Business Plan

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New-Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters