chapter 3

Question 1

pest analysis consists of? and their factors?

Answer 1

1- legal (ethical)
2- social ( demographics, geographics)
3- economic ( inflation, unemployment)
4- technological ( social media)
5- political ( goverment, taxes)

Question 2

political factors?

Answer 2

1- goverement
2- taxes
3- political climate

Question 3

legal factors?

Answer 3

ethical

Question 4

social factors?

Answer 4

1- demographics
2- geographics

Question 5

technological

Answer 5

1- social media
2- internt
3- nano technology

Question 6

economic factors?

Answer 6

1- inflation rate
2- unemployment rate

Question 7

five forces model

Answer 7

1- threat of subs
2- threat of new entrants
3- rivaly
4- supplier bargaining power
5- buyers bargaining power

Question 8

Threat of substitutes: Market is attractive and more profitable if (No
substitutes or hard to switch to them) Threat is low if;

Answer 8

no subs, higher switching costs, higher subs prices

Question 9

Suppliers bargaining power: Market is attractive and
more profitable if (They can’t raise prices or control
supplies as they wish.)

Answer 9

many suppliers

Question 10

Threat of new entrants: Market is attractive and
more profitable if (Hard for new entrants to enter
market (High barriers to entry); Not attractive to
enter if);

Question 11

Buyers bargaining power: Market is
attractive and more profitable if
(Buyers can’t push prices down.
Company can gain good profits.)
Buyers bargaining power is low if;

Answer 11

1- many buyers
2- demand higher than supply

Question 12

adv, of five forces model?

Answer 12

1- industry based view of competitve adv. and profitability
2- determine market attractiveness

Question 13

strategic groups?

Answer 13

composed of firms within an industry following similar
strategies aimed at similar customers or customer groups. Coca-Cola and
Pepsi, for example, form a strategic group in the soft drinks market