Question 1

An emerging industry is a new industry in which standard operating procedures have yet to be developed.

Accepted Answer

A) True 
 B)False

Question 2

A firm's future competitors are its most important ones.

Accepted Answer

A) True 
 B)False

Question 3

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 4

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

Accepted Answer

A)  a feasibility appraisal 
B)  a workable appraisal 
C)  a practical assessment 
D)  a viable assessment 
E)  competitive intelligence 
A)  a feasibility appraisal 
B)  a workable appraisal 
C)  a practical assessment 
D)  a viable assessment 
E)  competitive intelligence

Question 5

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

Accepted Answer

A)  inclusive, multidomestic 
B)  multidomestic, global 
C)  multidomestic, worldwide 
D)  inclusive, global 
E)  home, worldwide 
A)  inclusive, multidomestic 
B)  multidomestic, global 
C)  multidomestic, worldwide 
D)  inclusive, global 
E)  home, worldwide

Question 6

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

Accepted Answer

A)  unique business model 
B)  strength of management team 
C)  access to distribution channels 
D)  Internet domain name 
E)  first-mover advantage 
A)  unique business model 
B)  strength of management team 
C)  access to distribution channels 
D)  Internet domain name 
E)  first-mover advantage

Question 7

The primary opportunity existing for startups in emerging industries is to:

Accepted Answer

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

Question 8

In most industries, the major determinant of industry profitability is the level of competition among the firms already competing in the industry.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  economies of scale 
B)  cost advantages independent of size 
C)  buyer group concentration 
D)  access to distribution channels 
E)  government and legal barriers 
A)  economies of scale 
B)  cost advantages independent of size 
C)  buyer group concentration 
D)  access to distribution channels 
E)  government and legal barriers

Question 10

Shelly James recently launched a firm in the fruit drink industry, and has already exported her fruit drinks to 9 different countries. One thing that Shelly'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. Shelly'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 11

According to the textbook, PharmaJet, in needleless injection systems, and d'light, in solar-powered lanterns, are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

Accepted Answer

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

Question 12

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

Accepted Answer

A)  inventing a new approach to an industry and executing the idea in an exemplary fashion 
B)  unique business model 
C)  capital requirements 
D)  strength of management team 
E)  passion of management team and employees 
A)  inventing a new approach to an industry and executing the idea in an exemplary fashion 
B)  unique business model 
C)  capital requirements 
D)  strength of management team 
E)  passion of management team and employees

Question 13

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 his 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?

Accepted Answer

A)  capital requirements 
B)  economies of scale 
C)  product differentiation 
D)  government and legal barriers 
E)  cost advantage independent of size 
A)  capital requirements 
B)  economies of scale 
C)  product differentiation 
D)  government and legal barriers 
E)  cost advantage independent of size

Question 14

Opportunities for leadership, niche, harvest and divestment are associated with ________ industries.

Accepted Answer

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

Question 15

A fragmented industry is one that is characterized by a large number of firms of approximately equal size.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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:

Accepted Answer

A)  environmental trend 
B)  business trend 
C)  commerce trend 
D)  statutory trend 
E)  competitive trend 
A)  environmental trend 
B)  business trend 
C)  commerce trend 
D)  statutory trend 
E)  competitive trend

Question 18

Aquafina operates in the bottled water industry. The companies that offer identical or similar products and go after the same customers that Aquafina does are Dasani and Zephyrhills. Dasani and Zephyrhills are Aquafina's:

Accepted Answer

A)  direct competitors 
B)  indirect competitors 
C)  future competitors 
D)  impending competitors 
E)  potential competitors 
A)  direct competitors 
B)  indirect competitors 
C)  future competitors 
D)  impending competitors 
E)  potential competitors

Question 19

What is an emerging industry? What is the primary opportunity available to entrepreneurial firms in emerging industries? Name three examples of firms in emerging industries.

Accepted Answer

An emerging industry is a new industry i

Question 20

If a startup pioneers an industry or a new concept within an industry, the name recognition the startup establishes may create a formidable nontraditional barrier to entry referred to as a(n):

Accepted Answer

A)  unique business model 
B)  aggressive supremacy 
C)  competitive superiority 
D)  first-mover advantage 
E)  aggressive tactical advantage 
A)  unique business model 
B)  aggressive supremacy 
C)  competitive superiority 
D)  first-mover advantage 
E)  aggressive tactical advantage

An emerging industry is a new industry in which standard operating procedures have yet to be developed.

A firm's future competitors are its most important ones.

The primary opportunity existing for startups in fragmented industries is to:

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

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

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

The primary opportunity existing for startups in emerging industries is to:

In most industries, the major determinant of industry profitability is the level of competition among the firms already competing in the industry.

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

According to the textbook, PharmaJet, in needleless injection systems, and d'light, in solar-powered lanterns, are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

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

Opportunities for leadership, niche, harvest and divestment are associated with ________ industries.

A fragmented industry is one that is characterized by a large number of firms of approximately equal size.

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

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:

Aquafina operates in the bottled water industry. The companies that offer identical or similar products and go after the same customers that Aquafina does are Dasani and Zephyrhills. Dasani and Zephyrhills are Aquafina's:

What is an emerging industry? What is the primary opportunity available to entrepreneurial firms in emerging industries? Name three examples of firms in emerging industries.

If a startup pioneers an industry or a new concept within an industry, the name recognition the startup establishes may create a formidable nontraditional barrier to entry referred to as a(n):

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Developing an Effective Business Model

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

An emerging industry is a new industry in which standard operating procedures have yet to be developed.

A firm's future competitors are its most important ones.

The primary opportunity existing for startups in fragmented industries is to:

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

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

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

The primary opportunity existing for startups in emerging industries is to:

In most industries, the major determinant of industry profitability is the level of competition among the firms already competing in the industry.

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

According to the textbook, PharmaJet, in needleless injection systems, and d'light, in solar-powered lanterns, are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

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

Opportunities for leadership, niche, harvest and divestment are associated with ________ industries.

A fragmented industry is one that is characterized by a large number of firms of approximately equal size.

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

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:

Aquafina operates in the bottled water industry. The companies that offer identical or similar products and go after the same customers that Aquafina does are Dasani and Zephyrhills. Dasani and Zephyrhills are Aquafina's:

What is an emerging industry? What is the primary opportunity available to entrepreneurial firms in emerging industries? Name three examples of firms in emerging industries.

If a startup pioneers an industry or a new concept within an industry, the name recognition the startup establishes may create a formidable nontraditional barrier to entry referred to as a(n):

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Developing an Effective Business Model

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

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