Man Ec: #18

Question 1

What are the five forces (porters model)

Answer 1

Rivals
New entrants
Suppliers
Buyers
Substitute

Question 2

What is a firms competitive strategy?

Answer 2

action plans for achieving market success and, whenever possible, gaining a competitive edge over rival firms

Question 3

Competitive strategy usually includes competitive interplay of many characteristics such as…

Answer 3

Striving for patronage, and market position

competitors vying for market share

always gageing strategy in comparison to competition

choose a strategy not easily imitated or thwarted

Question 4

What does the success of any one firms strategy hinge on?

Answer 4

the strategies of other firms.

Question 5

Strategic group mapping

Answer 5

groups firms according to similar competitive approaches and positions in the market

Question 6

Competition increases when…9 things mentioned

Answer 6

1) demand for product is growing slowly
2) number of competitors increases
3) competitors use price cuts to boost unit volume
4) switching costs low
5) rival not satisfied with market position
6) high payoff from a strategic move
7) high cost to exit industry
8) divers competitors
9) strong companies outside industry acquire weak firms

Question 7

driving forces

Answer 7

forces that are in motion that create incentives or pressures for change.