Chapter 2

Question 1

Competitor Analysis

Answer 1

how companies gather and interpret information about their competitors

Question 2

Competitor Intelligence

Answer 2

a set of data and information the firm gathers to better understand and anticipate competitors’ objectives, strategies, assumptions, and capabilities

Question 3

Complementors

Answer 3

companies or networks of companies that sell complementary goods or services that are compatible with the local firm’s good or services

Question 4

Demographic Segment

Answer 4

concerned with a population’s size, age structure, geographic distribution, ethnic mix, and income distribution

Question 5

Economic Environment

Answer 5

refers to the nature and direction of the economy in which a firm competes or may compete

Question 6

General Environment

Answer 6

composed of dimensions in the broader society that influence an industry and the firms within it

Question 7

Global Segment

Answer 7

includes relevant new global markets, existing markets that are changing, important international political events, and critical cultural and institutional characteristics of global markets

Question 8

Industry

Answer 8

a group of firms producing products that are close substitutes

Question 9

Industry Environment

Answer 9

the set of factors that directly influences a firm and its competitive actions and responses: the threat of new entrants, the power of suppliers, the power of buyers, the threat of product substitutes, and the intensity of rivalry among competing firms

Question 10

Opportunity

Answer 10

a condition in the general environment that, if exploited effectively, helps a company reach strategic competitiveness

Question 11

Political/Legal Segment

Answer 11

the arena in which organizations and interest groups compete for attention, resources, and a voice in overseeing the body of laws and regulations guiding interactions among nations as well as between firms and various local governmental agencies

Question 12

Sociocultural Segment

Answer 12

concerned with a society’s attitudes and cultural values

Question 13

Strategic Group

Answer 13

a set of firms emphasizing similar strategic dimensions and using a similar strategy

Question 14

Sustainable Physical Environmental Segment

Answer 14

refers to potential and actual changes in the physical environment and business practices that are intended to positively respond to those changes with the intent of creating a sustainable environment

Question 15

Technological Segment

Answer 15

includes the institutions and activities involved in creating new knowledge and translating that knowledge into new outputs, products, processes, and materials

Question 16

Threat

Answer 16

a condition in the general environment that may hinder a company’s efforts to achieve strategic competitiveness