Question 1

In general, industries are more attractive when:

Accepted Answer

A)  the majority of the threats are high 
B)  the majority of the threats are low 
C)  the threat of each of the forces is neutralneither low nor high 
D)  the threat of each of the five-forces is high 
E)  the threat of each of the five-forces is low 
A)  the majority of the threats are high 
B)  the majority of the threats are low 
C)  the threat of each of the forces is neutralneither low nor high 
D)  the threat of each of the five-forces is high 
E)  the threat of each of the five-forces is low

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

The five competitive forces that determi

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

Some industries, like the athletic shoe industry, are dominated by a small number of firms with strong brands. These industries are difficult to break into without spending heavily on advertising. The barrier to entry that the firms in these types of industries have erected is referred to as:

Accepted Answer

A)  government and legal barriers 
B)  capital requirements 
C)  product differentiation 
D)  cost advantages independent of size 
E)  access to distribution channels 
A)  government and legal barriers 
B)  capital requirements 
C)  product differentiation 
D)  cost advantages independent of size 
E)  access to distribution channels

Question 8

Firms that pursue a ________ strategy compete for market share on a country-by-country basis and vary their product or service offerings to meet the demands of the local market.

Accepted Answer

A)  inclusive 
B)  universal 
C)  multidomestic 
D)  contemporary 
E)  worldwide 
A)  inclusive 
B)  universal 
C)  multidomestic 
D)  contemporary 
E)  worldwide

Question 9

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:

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 10

Virtually all studies have concluded that industry-specific factors are more important than firm-specific factors in terms of firm profitability.

Accepted Answer

A) True 
 B)False

Question 11

A ________ 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 12

The Partnering for Success boxed feature in Chapter 5 focuses on Barista Exchange, an online social network for independent coffeehouse owners. The central idea behind Barista Exchange is:

Accepted Answer

A)  that by banding together, independent coffeehouses can become as strong as the national chains 
B)  to provide a forum for independent coffeehouse owners to share advertising and marketing ideas 
C)  to maintain a job bank for independent coffeehouse owners 
D)  to provide a platform for independent coffeehouse owners to obtain funding 
E)  to help independent coffeehouse owners obtain legal advice 
A)  that by banding together, independent coffeehouses can become as strong as the national chains 
B)  to provide a forum for independent coffeehouse owners to share advertising and marketing ideas 
C)  to maintain a job bank for independent coffeehouse owners 
D)  to provide a platform for independent coffeehouse owners to obtain funding 
E)  to help independent coffeehouse owners obtain legal advice

Question 13

In the beverage industry, soda, fruit juice, and sports drinks are ________ competitors of bottled water.

Accepted Answer

A)  occasional 
B)  infrequent 
C)  indirect 
D)  direct 
E)  future 
A)  occasional 
B)  infrequent 
C)  indirect 
D)  direct 
E)  future

Question 14

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 15

Industry analysis is business research that focuses on the potential of an industry.

Accepted Answer

A) True 
 B)False

In general, industries are more attractive when:

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

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

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

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

Some industries, like the athletic shoe industry, are dominated by a small number of firms with strong brands. These industries are difficult to break into without spending heavily on advertising. The barrier to entry that the firms in these types of industries have erected is referred to as:

Firms that pursue a ________ strategy compete for market share on a country-by-country basis and vary their product or service offerings to meet the demands of the local market.

Virtually all studies have concluded that industry-specific factors are more important than firm-specific factors in terms of firm profitability.

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

The Partnering for Success boxed feature in Chapter 5 focuses on Barista Exchange, an online social network for independent coffeehouse owners. The central idea behind Barista Exchange is:

In the beverage industry, soda, fruit juice, and sports drinks are ________ competitors of bottled water.

Industry analysis is business research that focuses on the potential of an industry.

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

In general, industries are more attractive when:

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

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

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

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

Some industries, like the athletic shoe industry, are dominated by a small number of firms with strong brands. These industries are difficult to break into without spending heavily on advertising. The barrier to entry that the firms in these types of industries have erected is referred to as:

Firms that pursue a ________ strategy compete for market share on a country-by-country basis and vary their product or service offerings to meet the demands of the local market.

Virtually all studies have concluded that industry-specific factors are more important than firm-specific factors in terms of firm profitability.

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

The Partnering for Success boxed feature in Chapter 5 focuses on Barista Exchange, an online social network for independent coffeehouse owners. The central idea behind Barista Exchange is:

In the beverage industry, soda, fruit juice, and sports drinks are ________ competitors of bottled water.

Industry analysis is business research that focuses on the potential of an industry.

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