Learn Smart 3 Flashcards
Which factor allowed honda to successfully enter the U.S lawn mower market despite competition?
its reputation and ts expertise with gasoline
the change agents with the biggest influence in reshaping the industry landscape are known as ____ forces.
driving
to develop a business strategy to combat competitive conditions, companies must
- identify competitive pressures
- gauge the strength of the five competitive forces
which conditions increase rivalry among competing sellers?
- when buyer demand is growing slowly
- when the cost of switching brands is low
The threat of ____ increases competitive pressure on incumbent firms.
a new entrant in an industry
Industry members with similar competitive approaches and positions in the market are known as a(n)____ group.
strategic
Which of the following components form part of a company’s macro-environment?
- political factors
- sociocultural forces
- legal/regulatory conditions
List the three steps of driving-forces analysis in order,from the first step to the last
- identify what the driving forces are
- assess whether the driving forces are acting to make an industry more or less attractive
- Determine what strategy changes are needed to prepare for the effects that are driving forces.
to match a business strategy to prevailing competitive conditions, companies must initiate actions that alter the underlying factors driving the ?
five competitive forces
the ________ framework includes cooperative interactions among industry participants and introduce the category of “complementors”
Value Net
T/F
Key Success factors are so important that all firms in a given industry must pay attention to them or else jeopardize their competitive success.
TRUE
The “L” in PESTEL analysis stands for
Legal/Regulatory conditions
The suppliers of any given industry must have sufficient_______ power in order to influence the terms of supply in their favor
bargaining
What are some of the most important factors for determining a company’s prospects for competitive success and attractive profits?
- whether the company occupies a stronger market position than rivals
- how well the company’s strategy delivers on the industry key success factors
which of the following are concepts or analytic tools for assessing a company’s industry and competitive environment?
- the five forces framework
- competitor analysis
Buyers with strong bargaining power can exert strong ____ pressures and reduce industry profitability by demanding price concessions and additional features.
competitive
Rival Sellers may try to differentiate their products from those of competitors by
- Providing improved customer service
- building higher performance products
When circumstances would increase the bargaining power of buyers?
- when buyers are comparatively large and few
- when the cost for buyers to switch brands is low
T/F
In a given industry, all the driving forces push change in the same direction but by different amounts
False
When two industries are closely related to one another, companies can be threatened by the competitive pressure produced by ____ products.
Substitute
Increasing consumer demand, lower-cost foreign inputs, and reduced trade barriers all contribute to the increasing ________ of economic markets.
Globalization
In an ideal competitive environment for earning profit
- suppliers are in weak bargaining positions
- rivalry among present sellers is muted.
the final step in evaluating an industry and competitive environment is to?
combine the results of each analytic framework to determine its prospects.
the total dollar investment needed to enter a market successfully is known as the _______ requirement.
capital
The SOAR framework for competitor analysis was developed by
Michael Porter
which of the following are outlines in the five forces model of competition?
- supplier bargaining power
- competition from rival sellers
- customer bargaining power
When undertaking the third step in a strategic analysis of industry dynamics, managers must decide what strategy adjustments are needed to deal with the effects of
driving forces
Which of the following concepts are analytic for assessing a company’s industry and competitive environment?
- strategic group mapping
- the value net
- driving forces
All companies operate in a broad_________ - environment that is made up of six components, including political factors and technological factors.
Macro
When all five types of competitive forces are exerting strong pressure on an industry, the industry is said to be
competitively unattractive
Examples of substitute products that lead to competitive pressure between industries include
- newspaper and cable news
- sugar and sweet’ N low
when the overall effect of the five component forces is moderate to weak, an industry is
attractive
When conditions increase rivalry among competing sellers?
- when buyer demand is growing slowly
- when the cost of switching brands is low
The most powerful tool for diagnosing the principal competitive pressure in a market is known as the
five forces framework
Anheuser-Busch has partially ____ into metal-can manufacturing to gain bargaining power over manufactures
integrated backwards
which of the following are types of marketing tactics?
- sales promotions
- rebates
which of the following factors would lead to higher entry barriers for new industry entrants?
- high capital requirements
- restrictive trade policies
Intense competitive pressure from___ of the five competitive forces is sufficient to destroy the conditions for good profitability
just one
Which indicators of a rivals potential strategic moves are found in the SOAR framework for competitor analysis
resources and capabilities
which of the following are factors that affect the strength of rivalry among competing sellers?
- Substitutes
- new entrants
- suppliers
Understanding the ____ of driving forces requires looking at the effects of each factor separately.
collective impact
the competitive pressure created by the presence of substitute product increases when the substitutes are
- readily available and attractively priced
- seen as comparable in terms of quality and performance
which of the following are examples of trade restrictions?
- tariffs
- local content requirements
- anti-dumping rules
which of the following would likely have the greatest bargaining power over the sellers who supply them?
- best buy stores
T/F
Strategically relevant factors typically exist only within a company’s industry boundaries
false
What variables are typically included in a strategic group map?
- degree of vertical integration
- price/quality range
- product- line breadth
the advantage gained from a “wall of patents” is a form of
intellectual property protection
Which of the following are examples of key success factors?
- superior firm branding capabilities
- strong network of wholesale distributors
- superior product differentiation
minimum wage legislation tends to affect ____ industries more than others
labor-intensive
which of the following are strategically relevant macro-environment factors affecting cigarette producers?
- anti-smoking ordinances
- cultural stigma
- cigarette taxes
Over time, falling levels of risk tend to stimulate_____ on the part of growth-minded companies that seek new opportunities
- new entry
- capital investments
on a map of strategic groups, why are some groups more favorably positioned than others?
industry driving forces favor some strategic groups and hurt others
Which of the following are examples of regulated industries that require government-controlled entry?
- telecommunications
- liquor retailing
- railroads
in the past, Microsoft has used its dominant market status in which of the following ways?
- to charge PC makers premium prices
- to pressure PC makers to load only Microsoft products
When the supplier industry is more highly___ than the industry it sells to, it is generally able to deny request lower for lower prices
concentrated
Rivalry among industry members will be high when
there is excess supply in the market
Suppliers bargaining power increases when
industry members are not major customers of those suppliers
high _____ deter buyers from purchasing substitute products
switching products
Which of the following are examples of a technological factor that effects companies?
- R&D consortia
- Patent laws
- genetic engineering
Buyer price sensitivity increases when an industry product makes up a(n) portion of the total purchases of the buyer
large
Which of the following tend to reduce competitive activity among sellers?
- when there are few competitors in a market
- fear of retaliation
buyers bargaining power is reduced when
product information is incomplete
the two variables selected as ___ in a strategic group map should not be highly correlated
axes
Suppliers of ____ are in a weak bargaining position because there is no reason to choose the product of one supplier over that of another except for price.
commodities
Value net analysis can help managers improve their position through ____ as well as competitive interactions
cooperative
Which of the following are examples of economic conditions that affect companies?
- the per capita domestic product
- the inflation rate
- trade surpluses
which of the following is an example of something that establishes a network effect in customer demand?
video games systems
Consumers have the option to delay the purchase of ____ goods such as hot tubs and home entertainment centers
discretionary
strategically relevant factors have a bearing on the ___ direction of any given company?
long term
supplier power is greatest when demand for their products is ___ and the products are ___.
high; in short supply
Lowered switching costs___ supplier bargaining power
limit
The existence of complementors shows that a company’s sussess in the marketplace___ other industry participants.
need not come at the expense of