Question 1

The growth stage of an industry's life cycle is the:

Accepted Answer

A) time when companies attempt to secure their grip over customers in existing market segments. 
B) time when customers start exiting the markets. 
C) time to plan an exit strategy. 
D) opportunity to reduce investment in a product. 
E) phase when the demand for products is low because of customers not being familiar with the product. 
A) time when companies attempt to secure their grip over customers in existing market segments. 
B) time when customers start exiting the markets. 
C) time to plan an exit strategy. 
D) opportunity to reduce investment in a product. 
E) phase when the demand for products is low because of customers not being familiar with the product.

Question 2

Different strategies are often required to support and strengthen a company's business model as a market develops
over time.

Accepted Answer

A) True 
 B)False

Question 3

The franchisor typically owns and funds each of its franchisees.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following factors that affect market growth rates refers to the degree to which a new product is perceived as difficult to understand and use?

Accepted Answer

A) Complexity 
B) Relative advantage 
C) Compatibility 
D) Trialability 
E) Observability 
A) Complexity 
B) Relative advantage 
C) Compatibility 
D) Trialability 
E) Observability

Question 5

The real estate industry comprises different kinds of firms in several locations.Some are independent and popular locally while the others are affiliated to national chains.The real estate industry is most likely to be a(n):

Accepted Answer

A) fragmented industry. 
B) oligopolies industry. 
C) pure competition industry. 
D) consolidated industry. 
E) monopoly. 
A) fragmented industry. 
B) oligopolies industry. 
C) pure competition industry. 
D) consolidated industry. 
E) monopoly.

Question 6

Innovators and early adopters have very different customer needs from the early majority.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not a characteristic of a fragmented industry?

Accepted Answer

A) Low barriers to entry 
B) Diseconomies of scale 
C) Brand loyalty in the industry that may primarily be local 
D) Very specialized customer needs 
E) Large mass-production operation 
A) Low barriers to entry 
B) Diseconomies of scale 
C) Brand loyalty in the industry that may primarily be local 
D) Very specialized customer needs 
E) Large mass-production operation

Question 8

Fragmented industries typically have high barriers to entry.

Accepted Answer

A) True 
 B)False

Question 9

The challenge in a fragmented industry is to figure out the best set of strategies to overcome a fragmented market so that the competitive advantages associated with pursuing one of the different business models can be realized.

Accepted Answer

A) True 
 B)False

Question 10

Price signaling in the context of mature industries happens when:

Accepted Answer

A) the government intervenes to regnlate prices of products. 
B) companies decide to invest in slow-growing markets. 
C) companies decide to sell its patents to generate revenue. 
D) companies increase or decrease product prices to convey their intentions to other companies. 
E) a company concentrates on expanding market share in its existing product markets. 
A) the government intervenes to regnlate prices of products. 
B) companies decide to invest in slow-growing markets. 
C) companies decide to sell its patents to generate revenue. 
D) companies increase or decrease product prices to convey their intentions to other companies. 
E) a company concentrates on expanding market share in its existing product markets.

Question 11

A divestment strategy aims at growing in a declining industry by picking up the market share of companies that are leaving the industry.

Accepted Answer

A) True 
 B)False

Question 12

One strategy used to consolidate fragmented industries is:

Accepted Answer

A) vertical mergers. 
B) chaining. 
C) product proliferation. 
D) price signaling. 
E) nonprice competition. 
A) vertical mergers. 
B) chaining. 
C) product proliferation. 
D) price signaling. 
E) nonprice competition.

Question 13

Mature industries are generally characterized by:

Accepted Answer

A) low entry barriers. 
B) diseconomies of scale. 
C) absence oflarge-scale production. 
D) a small number of large firms. 
E) very low customer demand. 
A) low entry barriers. 
B) diseconomies of scale. 
C) absence oflarge-scale production. 
D) a small number of large firms. 
E) very low customer demand.

Question 14

Which of the following factors in an industry is most likely to cause excess capacity?

Accepted Answer

A) Technologically outdated production units 
B) High customer demand 
C) Increasing age of a company's physical assets 
D) Lack of competition from new entrants 
E) Limited number of outlets in certain locations 
A) Technologically outdated production units 
B) High customer demand 
C) Increasing age of a company's physical assets 
D) Lack of competition from new entrants 
E) Limited number of outlets in certain locations

Question 15

The "late majority" are typically reached through specialized distribution channels, and products are often sold by word of mouth.

Accepted Answer

A) True 
 B)False

Question 16

Market development strategy involves fmding new market segments for a company's products.

Accepted Answer

A) True 
 B)False

Question 17

Nutrimax Corp., a breakfast cereal company, has designed extensive and elaborate advertising campaigns for its existing products.The campaigns mainly focus on the aspects and benefits of the products that make them better than other products.The massive advertising and marketing initiatives are also intended to intimidate new entrants and rivals.Nutrimax Corp.is most likely to be using which of the following strategies?

Accepted Answer

A) Market penetration 
B) Product development 
C) Product proliferation 
D) Market development 
E) Capacity control 
A) Market penetration 
B) Product development 
C) Product proliferation 
D) Market development 
E) Capacity control

Question 18

A fragmented industry is one composed of a:

Accepted Answer

A) single large company that has the power to determine prices. 
B) large companies and their subsidiaries. 
C) large number of small and medium-sized fmns. 
D) companies that operate in different locations across the world. 
E) a small number of single proprietorships. 
A) single large company that has the power to determine prices. 
B) large companies and their subsidiaries. 
C) large number of small and medium-sized fmns. 
D) companies that operate in different locations across the world. 
E) a small number of single proprietorships.

Question 19

Market penetration involves the creation of new and innovative products to replace existing ones.

Accepted Answer

A) True 
 B)False

Question 20

A harvest strategy requires the company to halt all new investments in capital equipment, advertising, research and development, and so forth.

Accepted Answer

A) True 
 B)False

The growth stage of an industry's life cycle is the:

Different strategies are often required to support and strengthen a company's business model as a market develops over time.

The franchisor typically owns and funds each of its franchisees.

Which of the following factors that affect market growth rates refers to the degree to which a new product is perceived as difficult to understand and use?

The real estate industry comprises different kinds of firms in several locations.Some are independent and popular locally while the others are affiliated to national chains.The real estate industry is most likely to be a(n):

Innovators and early adopters have very different customer needs from the early majority.

Which of the following is not a characteristic of a fragmented industry?

Fragmented industries typically have high barriers to entry.

The challenge in a fragmented industry is to figure out the best set of strategies to overcome a fragmented market so that the competitive advantages associated with pursuing one of the different business models can be realized.

Price signaling in the context of mature industries happens when:

A divestment strategy aims at growing in a declining industry by picking up the market share of companies that are leaving the industry.

One strategy used to consolidate fragmented industries is:

Mature industries are generally characterized by:

Which of the following factors in an industry is most likely to cause excess capacity?

The "late majority" are typically reached through specialized distribution channels, and products are often sold by word of mouth.

Market development strategy involves fmding new market segments for a company's products.

A fragmented industry is one composed of a:

Market penetration involves the creation of new and innovative products to replace existing ones.

A harvest strategy requires the company to halt all new investments in capital equipment, advertising, research and development, and so forth.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Analysis

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters

Exam 6: Business-Level Strategy and the Industry Environment

The growth stage of an industry's life cycle is the:

Different strategies are often required to support and strengthen a company's business model as a market develops over time.

The franchisor typically owns and funds each of its franchisees.

Which of the following factors that affect market growth rates refers to the degree to which a new product is perceived as difficult to understand and use?

The real estate industry comprises different kinds of firms in several locations.Some are independent and popular locally while the others are affiliated to national chains.The real estate industry is most likely to be a(n):

Innovators and early adopters have very different customer needs from the early majority.

Which of the following is not a characteristic of a fragmented industry?

Fragmented industries typically have high barriers to entry.

The challenge in a fragmented industry is to figure out the best set of strategies to overcome a fragmented market so that the competitive advantages associated with pursuing one of the different business models can be realized.

Price signaling in the context of mature industries happens when:

A divestment strategy aims at growing in a declining industry by picking up the market share of companies that are leaving the industry.

One strategy used to consolidate fragmented industries is:

Mature industries are generally characterized by:

Which of the following factors in an industry is most likely to cause excess capacity?

The "late majority" are typically reached through specialized distribution channels, and products are often sold by word of mouth.

Market development strategy involves fmding new market segments for a company's products.

A fragmented industry is one composed of a:

Market penetration involves the creation of new and innovative products to replace existing ones.

A harvest strategy requires the company to halt all new investments in capital equipment, advertising, research and development, and so forth.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Analysis

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters