Question 1

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 2

Generally, industries are more attractive when the threat of substitutes is ________.

Accepted Answer

A)  high 
B)  low 
C)  neutral (neither high or low) 
D)  high for manufacturing firms and low for service firms 
E)  high for service firms and low for manufacturing firms 
A)  high 
B)  low 
C)  neutral (neither high or low) 
D)  high for manufacturing firms and low for service firms 
E)  high for service firms and low for manufacturing firms

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

An industry is a group of firms producing a similar product or service, such as tires, life insurance, or smartphone apps.

Accepted Answer

A) True 
 B)False

Question 5

An emerging industry is one that is characterized by a large number of firms of approximately equal size.

Accepted Answer

A) True 
 B)False

Question 6

The Savvy Entrepreneurial Firm feature in Chapter 5 focuses on three firms that are doing well in crowded industries as ________.

Accepted Answer

A)  they have effectively differentiated themselves from their competitors and have captured a first-mover advantage 
B)  they have passionate leaders and run savvy promotional campaigns 
C)  they have captured a first-mover advantage and have unique business models 
D)  they create meaningful value for customers at a fair price and have differentiated themselves from their competitors 
E)  they are low-cost leaders and run savvy promotional campaigns 
A)  they have effectively differentiated themselves from their competitors and have captured a first-mover advantage 
B)  they have passionate leaders and run savvy promotional campaigns 
C)  they have captured a first-mover advantage and have unique business models 
D)  they create meaningful value for customers at a fair price and have differentiated themselves from their competitors 
E)  they are low-cost leaders and run savvy promotional campaigns

Question 7

Which of Porter's five forces is most closely associated with the concept "barrier to entry"?

Accepted Answer

A)  Bargaining power of suppliers 
B)  Rivalry among existing firms 
C)  Threat of new entrants 
D)  Bargaining power of buyers 
E)  Threat of substitutes 
A)  Bargaining power of suppliers 
B)  Rivalry among existing firms 
C)  Threat of new entrants 
D)  Bargaining power of buyers 
E)  Threat of substitutes

Question 8

Tim Rutherford is thinking about starting a firm in the medical equipment industry. In the industry analysis Tim has been conducting, one thing he has noticed is that the medical equipment industry is characterized by buyer group concentration. This factor concerns Tim because it tells him that the profitability of the medical equipment industry is potentially 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 9

A fragmented industry is a new industry in which standard operating procedures have yet to be developed.

Accepted Answer

A) True 
 B)False

Question 10

According to the textbook, the five competitive forces included in the Five Forces model determine the average ________.

Accepted Answer

A)  rate of new business starts in an industry 
B)  growth rate for the firms in an industry 
C)  rate of return for the firms in an industry 
D)  sales for the firms in an industry 
E)  failure rate for the firms in an industry 
A)  rate of new business starts in an industry 
B)  growth rate for the firms in an industry 
C)  rate of return for the firms in an industry 
D)  sales for the firms in an industry 
E)  failure rate for the firms in an industry

Question 11

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?

Accepted Answer

The nontraditional barriers to entry,whi

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

According to the textbook, the three different types of competitors a business will face are ________.

Accepted Answer

A)  potential, direct, and upcoming 
B)  indirect, fleeting, and future 
C)  serious, cautious, and future 
D)  direct, indirect, and future 
E)  potential, fleeting, and indirect 
A)  potential, direct, and upcoming 
B)  indirect, fleeting, and future 
C)  serious, cautious, and future 
D)  direct, indirect, and future 
E)  potential, fleeting, and indirect

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

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

Generally, industries are more attractive when the threat of substitutes is ________.

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

An industry is a group of firms producing a similar product or service, such as tires, life insurance, or smartphone apps.

An emerging industry is one that is characterized by a large number of firms of approximately equal size.

The Savvy Entrepreneurial Firm feature in Chapter 5 focuses on three firms that are doing well in crowded industries as ________.

Which of Porter's five forces is most closely associated with the concept "barrier to entry"?

A fragmented industry is a new industry in which standard operating procedures have yet to be developed.

According to the textbook, the five competitive forces included in the Five Forces model determine the average ________.

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?

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

According to the textbook, the three different types of competitors a business will face are ________.

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

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

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

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

Generally, industries are more attractive when the threat of substitutes is ________.

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

An industry is a group of firms producing a similar product or service, such as tires, life insurance, or smartphone apps.

An emerging industry is one that is characterized by a large number of firms of approximately equal size.

The Savvy Entrepreneurial Firm feature in Chapter 5 focuses on three firms that are doing well in crowded industries as ________.

Which of Porter's five forces is most closely associated with the concept "barrier to entry"?

A fragmented industry is a new industry in which standard operating procedures have yet to be developed.

According to the textbook, the five competitive forces included in the Five Forces model determine the average ________.

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?

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

According to the textbook, the three different types of competitors a business will face are ________.

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

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

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