Chapter 5 Flashcards
Quiz 2
A condition that creates a disincentive for a new firm to enter an industry.
Barrier to Entry
A detailed analysis of a firm’s competitors.
Competitor/Competitor analysis
An industry or part of an industry that is experiencing a reduction in demand
Declining industry
When mass-producing a product results in lower average costs.
Economies of scale
A sometimes-insurmountable advantage gained by the first company to establish a significant position in a new market.
First-mover advantage
An industry with many firms that are approximately the same size.
Fragmented Industry
A strategy that firms implement by achieving lower costs than industry incumbents through process improvements.
Cost reduction strategy
A strategy in which one firm starts acquiring similar firms with locations in different geographic areas.
geographic roll-up strategy
An international expansion strategy in which firms compete for market share by using the same basic approach in all foreign markets.
global strategy
A strategy in which a firm tries to become the dominant player in their industry.
Leadership strategy
When firms compete for market share on a country-by-country basis and vary their product offerings to meet the local market’s demands.
multi-domestic strategy
A strategy a firm uses to focus on a narrow segment of the industry where growth could be possible through product or process innovation.
niche strategy
