Chapter 3

Question 1

What is an industry ?

Answer 1

An industry is a group of firm producing products and services that are essentially the same.

Question 2

What is a market ?

Answer 2

Is a group of customer for specific products or services that are essentially the same.

Question 3

What is a sector ?

Answer 3

Is a broad industry group especially in the public sector

Question 4

What are the five porter forces ?

Answer 4

The rivalry between competitors on the industry 
the threat of new entrants 
the threat of substitutes
the bargaining power of buyers 
the bargaining power of suppliers

Question 5

Who are the strategic customers ?

Answer 5

is the person/client at whom the strategy is primarily addressed because they have the most influence over which goods or services are purchased.

Question 6

What is the network effects ?

Answer 6

in an industry hen one customer of a product or service has a positive effect on the value of that product for other customers.

Question 7

What are the different steps in industry analysis ?

Answer 7

Define the industry clearly
Identify the actors of each of the five forces and define different groups within them and the basis for this
Determine the underlying factors of and total strength of each force
Assess the overall industry structure and attractiveness
Assess recent and expected changes for each force
Determine how to position your business in relation to the five forces

Question 8

What are the different types of industry ?

Answer 8

• Monopoly
• Oligopoly
• Perfect competition
• Perfectly competitive industries
• Hyper-competitive industries

Question 9

What is the critical success factors ?

Answer 9

are those factors that are either particularly valued by customers or which provide a significant advantage in terms of cost.

Question 10

What is blue ocean ?

Answer 10

are new markets space where competitions is minimized

Question 11

What is red ocean ?

Answer 11

Are where industries are already well defined and rivalry is intense