Exam 5: Industry and Competitor Analysis

Discuss the nontraditional barriers to entry identified in the chapter. Why is it important that entrepreneurial firms utilize one or more of these forms of barriers to entry?

Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n):

The best industry to enter is an industry where the threat of each of Porter's five-forces is low.

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

Windspire is starting a firm in the small-scale wind-generated power industry. This industry is still so new that no standard operating procedures have been developed. Small-scale wind-generated power is an example of a(n) ________ industry.

Identify the five competitive forces that determine industry profitably. Explain the purpose of analyzing these forces?

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

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

A mature industry is an industry that is experiencing slow increases in demand, numerous repeat customers, and limited product innovation.

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

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

The Savvy Entrepreneurial Firm feature in Chapter 5 focuses on three firms that are doing well in crowded industries for two reasons:

John Petersen is thinking about starting a firm in the specialty chemical industry. In the industry analysis John has been conducting, one thing he has noticed is that the specialty chemical industry is characterized by the following factors: high supplier concentration, high switching costs for buyers when they switch from one supplier to another, and no attractive substitutes for the products that most of the suppliers provide. These factors concern John because they tell him that the profitability of the specialty chemical industry is suppressed by the:

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

In general, industries are more attractive when:

The five industry types discussed in the book include:

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

Supplier concentration, switching costs, attractiveness of substitutes, and threat of forward integration are factors that have a direct impact on:

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 first step in a competitor analysis is to determine who the competition is.