Question 1

According to the textbook, Nucor in steel, JetBlue in airlines, and Cirque du Soleil in circuses are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

Accepted Answer

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

Question 2

Brain Sentry is starting a firm in the small industry that helps football teams discern whether a player has suffered a concussion. This industry is still so new that no standard operating procedures have been developed. The industry Brain Sentry is entering is an example of a(n) ________ industry.

Accepted Answer

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

Question 3

Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n) ________ analysis.

Accepted Answer

A)  business 
B)  industry 
C)  competitor 
D)  strategic 
E)  market

Question 4

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

Question 5

According to the textbook, Chipotle Mexican Grill in fast-casual restaurants and 1-800-GOT_JUNK? in junk removal are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

Accepted Answer

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

Question 6

According to the textbook, Justin's in peanut butter, Rover.com in dog care, and Zagster in bike sharing are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

Accepted Answer

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

Question 7

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

Question 8

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

Question 9

Firms that pursue a(n) ________ 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

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

What is industry analysis? Why is it important for a new venture to complete a thorough analysis of the industry it is entering?

Accepted Answer

The answer of What is industry analysis? Why is it...

Question 12

A competitive analysis grid is a tool for organizing the information a firm collects about its competitors.

Accepted Answer

A) True 
 B)False

Question 13

According to the textbook, the Five Forces model can be used in the following two ways: ________.

Accepted Answer

A)  first, to help a firm determine whether it should enter an industry in an aggressive or a conservative manner, and second, to help a firm determine whether to compete in international markets in that industry. 
B)  first, to help a firm determine if it should enter a single or multiple niches in an industry, and second, to help a firm determine whether it can be competitive in that industry 
C)  first, to help a firm determine what industry it is best equipped to compete in, and second, to help a firm determine whether to compete in international markets in that industry 
D)  first, to help a firm determine what niche to enter within an industry, and second, to help a firm determine whether it can be competitive in that industry 
E)  first, to help a firm determine whether it should enter a particular industry, and second, to help a firm discern whether it can carve out an attractive position in that industry

Question 14

In general, industries are more attractive when the ________.

Accepted Answer

A)  majority of the threats are high 
B)  majority of the threats are low 
C)  threat of each of the forces is neutral-neither low nor high 
D)  threat of each of the five forces is high 
E)  threat of each of the five forces is low

Question 15

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

Accepted Answer

A)  consolidate the industry and establish industry leadership as a result of doing so 
B)  win customers by placing an emphasis on service and process innovation 
C)  pursue a niche strategy, which focuses on a narrow segment of the industry that might be encouraged to grow through product or process innovation 
D)  capture a first-mover advantage 
E)  pursue a cost reduction strategy, which is accomplished through achieving lower costs than industry incumbents through process innovation

Question 16

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

Question 17

According to the textbook, the first step in a competitor analysis is to ________.

Accepted Answer

A)  develop a marketing plan 
B)  develop the strategic plan 
C)  study the strength of the industry 
D)  study the external environment 
E)  determine who the competition is

Question 18

The best industry to enter is an industry where the threat of each of Porter's five forces is high.

Accepted Answer

A) True 
 B)False

Question 19

In the context of competitor analysis, ________ competitors offer close substitutes to the product sold by the firm completing the analysis.

Accepted Answer

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

Question 20

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 answer of Discuss the nontraditional barriers to entry identified...

Exam 5: Industry and Competitor Analysis

According to the textbook, Nucor in steel, JetBlue in airlines, and Cirque du Soleil in circuses are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

Brain Sentry is starting a firm in the small industry that helps football teams discern whether a player has suffered a concussion. This industry is still so new that no standard operating procedures have been developed. The industry Brain Sentry is entering is an example of a(n) ________ industry.

Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n) ________ analysis.

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.

According to the textbook, Chipotle Mexican Grill in fast-casual restaurants and 1-800-GOT_JUNK? in junk removal are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

According to the textbook, Justin's in peanut butter, Rover.com in dog care, and Zagster in bike sharing are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

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.

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) ________.

Firms that pursue a(n) ________ 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.

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

What is industry analysis? Why is it important for a new venture to complete a thorough analysis of the industry it is entering?

A competitive analysis grid is a tool for organizing the information a firm collects about its competitors.

According to the textbook, the Five Forces model can be used in the following two ways: ________.

In general, industries are more attractive when the ________.

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

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.

According to the textbook, the first step in a competitor analysis is to ________.

The best industry to enter is an industry where the threat of each of Porter's five forces is high.

In the context of competitor analysis, ________ competitors offer close substitutes to the product sold by the firm completing the analysis.

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?