Question 1

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

Accepted Answer

A)  first mover advantage 
B)  unique business model 
C)  product differentiation 
D)  strength of management team 
E)  Internet domain name 
A)  first mover advantage 
B)  unique business model 
C)  product differentiation 
D)  strength of management team 
E)  Internet domain name

Question 2

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 3

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

Accepted Answer

A) True 
 B)False

Question 4

Jill Pattersen is starting a firm in the netbook industry. This industry is still so new that no standard operating procedures have been developed. Netbooks is an example of an ________ industry.

Accepted Answer

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

Question 5

In the context of competitive analysis, ________ offer close substitutes to the product the firm completing the analysis sells.

Accepted Answer

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

Question 6

The What Went Wrong? feature in Chapter 5 focuses on Bath & Body Works, a company that lost a favorable position in an industry. According to the feature, Bath & Body Works lost its favorable position by:

Accepted Answer

A)  a poor positioning strategy to begin with 
B)  missing a number of changing environmental trends 
C)  missing a number of changing business trends 
D)  a poor understanding of Porter's five forces framework and what it means 
E)  poor competitive intelligence 
A)  a poor positioning strategy to begin with 
B)  missing a number of changing environmental trends 
C)  missing a number of changing business trends 
D)  a poor understanding of Porter's five forces framework and what it means 
E)  poor competitive intelligence

Question 7

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 8

A ________ industry is an industry that is experiencing significant international sales.

Accepted Answer

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

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

According to the textbook, which of the following statements is accurate regarding the importance of industry versus firm-specific factors as it pertains to firm profitability?

Accepted Answer

A)  Virtually all the studies have concluded that industry-specific factors are more important than firm-specific factors. 
B)  Virtually all the studies have concluded that firm-specific factors are more important than industry-specific factors. 
C)  Virtually all the studies have concluded that industry-specific factors are of almost no importance. 
D)  Virtually all the studies have concluded that firm-specific factors are of almost no importance. 
E)  Virtually all the studies have concluded that firm-specific factors and industry-specific factors are of equal importance. 
A)  Virtually all the studies have concluded that industry-specific factors are more important than firm-specific factors. 
B)  Virtually all the studies have concluded that firm-specific factors are more important than industry-specific factors. 
C)  Virtually all the studies have concluded that industry-specific factors are of almost no importance. 
D)  Virtually all the studies have concluded that firm-specific factors are of almost no importance. 
E)  Virtually all the studies have concluded that firm-specific factors and industry-specific factors are of equal importance.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The Savvy Entrepreneurial Firm feature in Chapter 5 focuses on Sony. Which of Porter's five forces made a dramatic difference in the way the founder's of Sony decided to view their markets in the early years of the company?

Accepted Answer

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

Question 14

BusinessesAtoZ, the company profiled in the opening feature for Chapter 5, has a unique position in its industry. It is positioned:

Accepted Answer

A)  as a small Web hosting company that offers a high degree of customer service 
B)  as a large Web hosting company that focuses primarily on keeping its customers up and running 
C)  right in the middle offering the customer service advantages of a small Web hosting company and the security advantages of a large Web hosting company 
D)  as an outsource provider to both small and large Web hosting companies 
E)  as a consulting company working with both small and large Web hosting companies 
A)  as a small Web hosting company that offers a high degree of customer service 
B)  as a large Web hosting company that focuses primarily on keeping its customers up and running 
C)  right in the middle offering the customer service advantages of a small Web hosting company and the security advantages of a large Web hosting company 
D)  as an outsource provider to both small and large Web hosting companies 
E)  as a consulting company working with both small and large Web hosting companies

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is an example of an industry-level opposed to a firm-level factor?

Accepted Answer

A)  a firm's assets 
B)  a firm's culture 
C)  the teamwork among a firm's employees 
D)  a firm's products 
E)  threat of new entrants 
A)  a firm's assets 
B)  a firm's culture 
C)  the teamwork among a firm's employees 
D)  a firm's products 
E)  threat of new entrants

Question 17

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

Accepted Answer

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

Question 18

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?

Accepted Answer

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

Question 19

The five industry types discussed in the book include:

Accepted Answer

A)  launching, fragmented, leveled-off, declining, and global 
B)  emerging, climbing, mature, declining, and worldwide 
C)  emerging, fragmented, mature, declining, and global 
D)  climbing, peaking, plateaued, declining, and international 
E)  launching, consolidated, plateaued, mature, and worldwide 
A)  launching, fragmented, leveled-off, declining, and global 
B)  emerging, climbing, mature, declining, and worldwide 
C)  emerging, fragmented, mature, declining, and global 
D)  climbing, peaking, plateaued, declining, and international 
E)  launching, consolidated, plateaued, mature, and worldwide

Question 20

There are four factors that determine the threat of new entrants: number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs.

Accepted Answer

A) True 
 B)False

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

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

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

Jill Pattersen is starting a firm in the netbook industry. This industry is still so new that no standard operating procedures have been developed. Netbooks is an example of an ________ industry.

In the context of competitive analysis, ________ offer close substitutes to the product the firm completing the analysis sells.

The What Went Wrong? feature in Chapter 5 focuses on Bath & Body Works, a company that lost a favorable position in an industry. According to the feature, Bath & Body Works lost its favorable position by:

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

A ________ industry is an industry that is experiencing significant international sales.

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

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

According to the textbook, which of the following statements is accurate regarding the importance of industry versus firm-specific factors as it pertains to firm profitability?

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

The Savvy Entrepreneurial Firm feature in Chapter 5 focuses on Sony. Which of Porter's five forces made a dramatic difference in the way the founder's of Sony decided to view their markets in the early years of the company?

BusinessesAtoZ, the company profiled in the opening feature for Chapter 5, has a unique position in its industry. It is positioned:

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

Which of the following is an example of an industry-level opposed to a firm-level factor?

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 five industry types discussed in the book include:

There are four factors that determine the threat of new entrants: number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs.

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 Venture's 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

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

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

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

Jill Pattersen is starting a firm in the netbook industry. This industry is still so new that no standard operating procedures have been developed. Netbooks is an example of an ________ industry.

In the context of competitive analysis, ________ offer close substitutes to the product the firm completing the analysis sells.

The What Went Wrong? feature in Chapter 5 focuses on Bath & Body Works, a company that lost a favorable position in an industry. According to the feature, Bath & Body Works lost its favorable position by:

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

A ________ industry is an industry that is experiencing significant international sales.

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

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

According to the textbook, which of the following statements is accurate regarding the importance of industry versus firm-specific factors as it pertains to firm profitability?

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

The Savvy Entrepreneurial Firm feature in Chapter 5 focuses on Sony. Which of Porter's five forces made a dramatic difference in the way the founder's of Sony decided to view their markets in the early years of the company?

BusinessesAtoZ, the company profiled in the opening feature for Chapter 5, has a unique position in its industry. It is positioned:

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

Which of the following is an example of an industry-level opposed to a firm-level factor?

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 five industry types discussed in the book include:

There are four factors that determine the threat of new entrants: number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs.

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 Venture's 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