Question 1

In the context of competitor analysis, ________ are companies that are not yet direct or indirect competitors but could move into one of these roles at any time.

Accepted Answer

A)   stable competitors
B)   roundabout competitors
C)   impending competitors
D)   approximate competitors
E)   future competitors E

Question 2

Each quarter, Cindy Anderson, who owns a chain of card and gift shops, does a detailed analysis of her firm's competitors. This analysis is called:

Accepted Answer

A)   competitor analysis
B)   challenger analysis
C)   strategic analysis
D)   participant analysis
E)   industry analysis A

Question 3

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 E

Question 4

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.

Question 5

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

Question 6

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

Question 7

Jeremy Banks 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 Jeremy was doing is called:

Accepted Answer

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

Question 8

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

Accepted Answer

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

Question 9

Element Bars, the company profiled in the opening feature for Chapter 5, has a unique position in its industry. It has positioned itself as:

Accepted Answer

A)   a generic energy bar company that resells energy bars to companies who want to create their own branded energy bars
B)   a niche energy bar company that sells in high-end outlets, like 5 star hotels and spas
C)   a premium energy bar company that only uses the most wholesome and healthy ingredients, and makes special bars for vegetarians and vegans
D)   a low-cost energy bar company that makes energy bars more accessible to people in all income brackets and still offers healthy ingredients
E)   a customizable energy bar company that sells to individuals online and also to companies who want to create their own branded energy bars

Question 10

The Partnering for Success feature in Chapter 5 focuses on three things that are important for startups to become active in to learn the ins and outs of their industries. The three items focused on in the feature are?

Accepted Answer

A)   local Chambers of Commerce, trade journals, and networking events
B)   Facebook, industry-related e-mail listservs, and trade shows
C)   trade associations, trade shows, and trade journals
D)   networking events, blogs, and Facebook
E)   local Chambers of Commerce, city or university-sponsored incubators, and trade associations

Question 11

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

Accepted Answer

A)   immediate competitors
B)   direct competitors
C)   indirect competitors
D)   straight competitors
E)   urgent competitors

Question 12

According to the textbook, which of the following statements is accurate regarding the importance of industry versus firm-specific factors as it pertains to firm profitability?

Accepted Answer

A)   Virtually all the studies have concluded that industry-specific factors are more important than firm-specific factors.
B)   Virtually all the studies have concluded that firm-specific factors are more important than industry-specific factors.
C)   Virtually all the studies have concluded that industry-specific factors are of almost no importance.
D)   Virtually all the studies have concluded that firm-specific factors are of almost no importance.
E)   Virtually all the studies have concluded that firm-specific factors and industry-specific factors are of equal importance.

Question 13

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 14

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 15

The What Went Wrong? feature in Chapter 5 focuses on Eclipse Aviation. What was Eclipse Aviation's goal?

Accepted Answer

A)   to create a new segment in the private jet industry called very light jets.
B)   to create a more affordable line of private two-seat and four-seat propeller planes
C)   to create ultra-luxurious private jets
D)   to create a low-cost airline to compete head-to-head with Southwest Airlines
E)   to create a new segment in the passenger jet industry called very heavy jets

Question 16

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

Accepted Answer

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

Question 17

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 18

If the buyers are concentrated and they buy from a large number of suppliers, then the bargaining power of buyers is increased.

Accepted Answer

A) True 
 B)False

Question 19

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 20

Which of Porter's five forces is most directly influenced by the following factors: number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs?

Accepted Answer

A)   threat of new entrants
B)   rivalry among existing firms
C)   threat of substitutes
D)   bargaining power of buyers
E)   bargaining power of suppliers

Exam 5: Industry and Competitor Analysis

In the context of competitor analysis, ________ are companies that are not yet direct or indirect competitors but could move into one of these roles at any time.

Each quarter, Cindy Anderson, who owns a chain of card and gift shops, does a detailed analysis of her firm's competitors. This analysis is called:

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

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

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:

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

Jeremy Banks 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 Jeremy was doing is called:

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

Element Bars, the company profiled in the opening feature for Chapter 5, has a unique position in its industry. It has positioned itself as:

The Partnering for Success feature in Chapter 5 focuses on three things that are important for startups to become active in to learn the ins and outs of their industries. The three items focused on in the feature are?

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

According to the textbook, which of the following statements is accurate regarding the importance of industry versus firm-specific factors as it pertains to firm profitability?

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.

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.

The What Went Wrong? feature in Chapter 5 focuses on Eclipse Aviation. What was Eclipse Aviation's goal?

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

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.

If the buyers are concentrated and they buy from a large number of suppliers, then the bargaining power of buyers is increased.

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

Which of Porter's five forces is most directly influenced by the following factors: number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs?