Day 1 Porter competitive forces abstract pg

Question 1

The five ____ govern the profit structure of an industry by determining how the economic value it creates is apportioned

Answer 1

forces

Question 2

The five forces govern the ___ structure of an industry by determining how the economic value it creates is apportioned

Answer 2

profit

Question 3

The five forces govern the profit ____ of an industry by determining how the economic value it creates is apportioned

Answer 3

structure

Question 4

The five forces govern the profit structure of an ____ by determining how the economic value it creates is apportioned

Answer 4

industry

Question 5

The five forces govern the profit structure of an industry by determining how the ____ value it creates is apportioned

Answer 5

economic

Question 6

The five forces govern the profit structure of an industry by determining how the economic value it ____ is apportioned

Answer 6

creates

Question 7

The five forces govern the profit structure of an industry by determining how the economic value it creates is ____

Answer 7

apportioned

Question 8

the economic value of a industry may be drained away through the rivalry among what?

Answer 8

existing competitors

Question 9

the economic value of a industry may be bargained away through the power of what ?(2)

Answer 9

1. suppliers 2. customers

Question 10

the economic value of a industry may be constrained by the threat of what (2)

Answer 10

1. new entrants 2. substitutes

Question 11

____ can be view as building defenses against the competitive forces or as finding a position in an industry where the forces are weaker

Answer 11

strategy

Question 12

strategy can be view as building ____ against the competitive forces or as finding a position in an industry where the forces are weaker

Answer 12

defenses

Question 13

strategy can be view as building defenses against the ____ forces or as finding a position in an industry where the forces are weaker

Answer 13

competitive

Question 14

strategy can be view as building defenses against the competitive _____ or as finding a position in an industry where the forces are weaker

Answer 14

forces

Question 15

strategy can be view as building defenses against the competitive forces or as ____ a position in an industry where the forces are weaker

Answer 15

finding

Question 16

strategy can be view as building defenses against the competitive forces or as finding a ____ in an industry where the forces are weaker

Answer 16

position

Question 17

strategy can be view as building defenses against the competitive forces or as finding a position in an ____ where the forces are weaker

Answer 17

industry

Question 18

strategy can be view as building defenses against the competitive forces or as finding a position in an industry where the _____ are weaker

Answer 18

forces

Question 19

strategy can be view as building defenses against the competitive forces or as finding a position in an industry where the forces are ____

Answer 19

weaker

Question 20

_____ in the strength of the competitive forces signals changes in the competitive landscape critical to ongoing strategy formulation

Answer 20

Changes

Question 21

Changes in the ____ of the competitive forces signals changes in the competitive landscape critical to ongoing strategy formulation

Answer 21

strength

Question 22

Changes in the strength of the _____ forces signals changes in the competitive landscape critical to ongoing strategy formulation

Answer 22

competitive

Question 23

Changes in the strength of the competitive forces _____changes in the competitive landscape critical to ongoing strategy formulation

Answer 23

signals

Question 24

Changes in the strength of the competitive forces signals _____ in the competitive landscape critical to ongoing strategy formulation

Answer 24

changes

Question 25

Changes in the strength of the competitive forces signals changes in the _____ landscape critical to ongoing strategy formulation

Answer 25

competitive

Question 26

Changes in the strength of the competitive forces signals changes in the competitive _____critical to ongoing strategy formulation

Answer 26

landscape

Question 27

Changes in the strength of the competitive forces signals changes in the competitive landscape critical to ongoing _____formulation

Answer 27

strategy

Question 28

Changes in the strength of the competitive forces signals changes in the competitive landscape critical to ongoing strategy _____

Answer 28

formulation

Question 29

How do the five competitive forces govern the profit structure of an industry ?

Answer 29

by determining how the economic value it creates is apportioned

Question 30

what are 2 strategies for dealing with competitive forces?

Answer 30

1. building defenses against them 2. finding a position in an industry where the forces are weaker

Question 31

What do changes in the strength of the competitive forces signal? why is this important?

Answer 31

changes in the competitive landscape It is necessary to adjust for these changes in ongoing strategy formulation

Question 32

You must respond strategically to competition in order to sustain what?

Answer 32

long term profitability

Question 33

In order to be competitive, you need to look beyond your direct what?

Answer 33

competitors

Question 34

What are the 5 competitive forces that can hurt your future profits?

Answer 34

1. direct competitiors 2. customers 3. suppliers 4. new entrants 5. substitutes

Question 35

how can customers hurt your future profits?

Answer 35

they can force down prices by playing you and your rivals against each other

Question 36

how can suppliers hurt your future profits?

Answer 36

they can constrain your profits if they charge higher prices

Question 37

how can new entrants hurt your future profits?

Answer 37

they can ratchet up the investment you need to make to stay in the game

Question 38

how can substitutes hurt your future profits?

Answer 38

they can lure customers away

Question 39

By analyzing all 5 competitive forces, you gain a complete picture of something being influenced…what is it?

Answer 39

profitability in your industry

Question 40

What are 3 benefits of analyzing the 5 competitive forces?

Answer 40

1. you can spot game changing trends early so you can exploit them 2. you can spot ways to work around constraints on profitability 3. You may be able to reshape the forces in your favor

Question 41

You can develop a strategy to enhance your company’s long term profits by understanding what about the 5 competitive forces?

Answer 41

how they influence profitability in your industry

Question 42

What are the 3 strategies Porter suggests to deal with competitive forces and enhance your companies long term profits?

Answer 42

1. position your company where the forces are the weakest. 2. Exploit changes in the forces 3. reshape the forces in your favor

Question 43

What is an example of the strategy of positioning your company where the forces are the weakest.

Answer 43

ex. heavy truck industry, many buyers operate large fleets and are motivated to drive down truck prices. trucks are built to regulated standards and have similiar features so price competition is stiff, unions have great supplier power, and buyers can use substitutes such as cargo delivery by rail. Paccar focused one customer group where competitve forces are weakest. individual drivers who own their trucks and contract directly with suppliers. they have limited power as buyers and are less price sensitive because of emotional ties and economic dependence on their own trucks. they developed many features for thier trucks to personalize for the buyer built to order and customers pay a premium

Question 44

What is an example of the strategy of exploiting changes in forces?

Answer 44

with the internet and digital distribution of music, unauthorized downloading created an great substitute for record companies services. record companies tried to develop technical platforms to distribute digitally but they didnt want to sell thier music on platform of a rival. Apple saw this opportunity and launched Itunes music store supporting its Ipod music player. major recording companies went from 6 to 4 because of it.

Question 45

What does it mean to use a strategy of reshaping the forces in your favor?

Answer 45

use tactics designed to specifically to reduce the share of profits leaking to other players

Question 46

What is an example of the strategy of reshaping the supplier power force in your favor?

Answer 46

To neutralize supplier power, standardize specifications for parts so your company can switch more easily among vendors

Question 47

What is an example of the strategy of reshaping the customer power force in your favor?

Answer 47

to counter customer power, expand your services so it’s harder for customers to leave you for a rival

Question 48

What is an example of the strategy of reshaping the existing rival power force in your favor?

Answer 48

to temper price wars by established rivals, invest more heavily in products that differ significantly from competitors offerings.

Question 49

What is an example of the strategy of reshaping the new entrants force in your favor?

Answer 49

to scare off new entrants, elevate the fixed costs of competing….ex. escalate your R&D expenditures

Question 50

What is an example of the strategy of reshaping the substitutes force in your favor?

Answer 50

to limit the threats of substitutes, offer better value through wider product accessibilty. ex. soft drink producers introduced vending machines and convenience store channels improving the availabiliity of soft drinks relative to other beverages