Question 1

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 2

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 3

According to the textbook, how do well-managed firms respond to the five forces that determine industry profitability?

Accepted Answer

A)  They switch industries if the forces are too compelling. 
B)  They focus on one force intently and excel by overcoming that force. 
C)  They overcome each of the forces. 
D)  They ignore the forces. 
E)  They try to position their firms in a way that avoids or diminishes the forces. 
A)  They switch industries if the forces are too compelling. 
B)  They focus on one force intently and excel by overcoming that force. 
C)  They overcome each of the forces. 
D)  They ignore the forces. 
E)  They try to position their firms in a way that avoids or diminishes the forces.

Question 4

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 5

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 6

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

Question 7

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 8

Greenvelope, the company profiled in the opening feature of Chapter 5, believes it has created sufficient barriers to entry to enable it to maintain a leadership position in the invitation industry. Its barriers to entry include ________.

Accepted Answer

A)  the price-point of its products, the amount of its funding, the strength of its management team, and its partnership with a major player in the invitations industry 
B)  its intellectual property, the strength of its brand, its international presence, and its access to distribution channels 
C)  the strength of its brand, its network of freelance designers, its social mission, and the functionality of its Web site. 
D)  the innovative nature of its products, its network of freelance designers, the strength of its management team, and economies of scale 
E)  its international presence, the price-point of its products, its social mission, and the innovative nature of its products 
A)  the price-point of its products, the amount of its funding, the strength of its management team, and its partnership with a major player in the invitations industry 
B)  its intellectual property, the strength of its brand, its international presence, and its access to distribution channels 
C)  the strength of its brand, its network of freelance designers, its social mission, and the functionality of its Web site. 
D)  the innovative nature of its products, its network of freelance designers, the strength of its management team, and economies of scale 
E)  its international presence, the price-point of its products, its social mission, and the innovative nature of its products

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

A(n) ________ 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 12

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 13

In various studies, researchers have found that from ________ percent of the variation in firm profitability is directly attributable to the industry in which a firm competes.

Accepted Answer

A)  4 to 12 
B)  8 to 30 
C)  18 to 42 
D)  22 to 56 
E)  34 to 70 
A)  4 to 12 
B)  8 to 30 
C)  18 to 42 
D)  22 to 56 
E)  34 to 70

Question 14

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 15

Terry Washington recently started a new firm in the financial services industry. Prior to starting his firm, he spent considerable time doing research on the potential of the industry. The research that Terry was doing is called ________ analysis.

Accepted Answer

A)  industry 
B)  sector 
C)  commercial 
D)  business 
E)  target market 
A)  industry 
B)  sector 
C)  commercial 
D)  business 
E)  target market

Question 16

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 17

A(n) ________ is a group of firms producing a similar product or service, such as soft drinks, airlines, or smartphone apps.

Accepted Answer

A)  cluster 
B)  division 
C)  sector 
D)  industry 
E)  network 
A)  cluster 
B)  division 
C)  sector 
D)  industry 
E)  network

Question 18

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 ________ trend.

Accepted Answer

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

Question 19

The What Went Wrong? feature in Chapter 5 focused on Digg, a Web site that was once one of the hottest sites on the Internet but eventually failed. According to the feature, through a series of missteps Digg ________.

Accepted Answer

A)  failed to conduct sufficient competitor analysis 
B)  succumb to the bargaining power of suppliers 
C)  lost its way and its place in its industry 
D)  was unable to erect sufficient barriers to entry 
E)  succumb to the bargaining power of buyers 
A)  failed to conduct sufficient competitor analysis 
B)  succumb to the bargaining power of suppliers 
C)  lost its way and its place in its industry 
D)  was unable to erect sufficient barriers to entry 
E)  succumb to the bargaining power of buyers

Question 20

The primary opportunity available to firms in fragmented industries is consolidation. The most common way to do this is through a geographic roll-up strategy, in which one firm starts acquiring similar firms that are located in different geographic areas.

Accepted Answer

A) True 
 B)False

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

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

According to the textbook, how do well-managed firms respond to the five forces that determine industry profitability?

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.

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) ________.

Greenvelope, the company profiled in the opening feature of Chapter 5, believes it has created sufficient barriers to entry to enable it to maintain a leadership position in the invitation industry. Its barriers to entry include ________.

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

A(n) ________ industry is an industry that is experiencing significant international sales.

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?

In various studies, researchers have found that from ________ percent of the variation in firm profitability is directly attributable to the industry in which a firm competes.

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

Terry Washington recently started a new firm in the financial services industry. Prior to starting his firm, he spent considerable time doing research on the potential of the industry. The research that Terry was doing is called ________ analysis.

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

A(n) ________ is a group of firms producing a similar product or service, such as soft drinks, airlines, or smartphone apps.

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 ________ trend.

The What Went Wrong? feature in Chapter 5 focused on Digg, a Web site that was once one of the hottest sites on the Internet but eventually failed. According to the feature, through a series of missteps Digg ________.

The primary opportunity available to firms in fragmented industries is consolidation. The most common way to do this is through a geographic roll-up strategy, in which one firm starts acquiring similar firms that are located in different geographic areas.

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

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

According to the textbook, how do well-managed firms respond to the five forces that determine industry profitability?

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.

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) ________.

Greenvelope, the company profiled in the opening feature of Chapter 5, believes it has created sufficient barriers to entry to enable it to maintain a leadership position in the invitation industry. Its barriers to entry include ________.

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

A(n) ________ industry is an industry that is experiencing significant international sales.

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?

In various studies, researchers have found that from ________ percent of the variation in firm profitability is directly attributable to the industry in which a firm competes.

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

Terry Washington recently started a new firm in the financial services industry. Prior to starting his firm, he spent considerable time doing research on the potential of the industry. The research that Terry was doing is called ________ analysis.

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

A(n) ________ is a group of firms producing a similar product or service, such as soft drinks, airlines, or smartphone apps.

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 ________ trend.

The What Went Wrong? feature in Chapter 5 focused on Digg, a Web site that was once one of the hottest sites on the Internet but eventually failed. According to the feature, through a series of missteps Digg ________.

The primary opportunity available to firms in fragmented industries is consolidation. The most common way to do this is through a geographic roll-up strategy, in which one firm starts acquiring similar firms that are located in different geographic areas.

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 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