MIDTERM:PPT.1- Industial Env.. Flashcards

1
Q

It refers to the specific industry or sector in which a business operates, and it consists of the competitive and market forces that directly influence the organization’s ability to thrive

A

Industrial Environment

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2
Q

It refers to the factors and conditions that directly affect an industry’s operation and competitiveness

A

Industrial Environment

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3
Q

It is a framework for analyzing the competitive forces that affect an industry

A

Porters Five forces

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4
Q

The degree to which new competitors can enter an industry and threaten the market share of existing companies

A

Threat of New Entrants

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5
Q

What are the factors of threat of New Entrants?

A
  1. Barriers to entry
  2. Cost advantages
  3. Regulatory Barrier
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6
Q

High barriers (eg., capital requirements, economies of scale, brand loyalty, patents) discourage new firms from entering the industry.

A

Barriers to entry

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7
Q

Established companies with cost advantages or access to cheaper resources can discourage new competitors

A

Cost advantages

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8
Q

Government regulations, permits, and licenses may restrict new entrants.

A

Regulatory Barriers

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9
Q

It’s the influence that suppliers have over the prices and quality of inputs (e.g., raw materials, components) for the industry

A

Bargaining Power of supplier

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10
Q

What are the factors influencing supplier power?

A
  1. Number of suppliers
  2. Uniqueness of the input
  3. Switching cost
  4. Supplier concentration
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11
Q

If there are few suppliers for a particular input, they hold more bargaining power.

A

Number of suppliers

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12
Q

Suppliers of critical, unique, or scarce resources have higher bargaining power.

A

Uniqueness of the input

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13
Q

The ease with which companies can switch suppliers. High switching costs increase supplier power

A

Switching costs

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14
Q

A few dominant suppliers can command higher prices and terms.

A

Supplier concentration

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15
Q

The power that customers have to influence the price, quality, and terms of products or services.

A

Bargaining Power of buyers

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16
Q

Factors influencing buyers’ power?

A
  1. Buyers concentration
  2. Switching costs
  3. Availability of substitutes
  4. Importance of the buyer
17
Q

If a few large buyers account for a significant portion of total sales, they have more bargaining power

A

Buyer concentration

18
Q

Low switching costs allow customers to easily move to competitors, increasing their bargaining power

A

Switching costs

19
Q

if buyers have many alternatives to choose from, their power increases

A

Availability of substitutes

20
Q

If a company depends heavily on a specific buyer for revenue, the buyer has more leverage.

A

Importance of the buyer

21
Q

The likelihood that customers will switch to alternative products or services that fulfill the same need

A

Threat of Substitute product or services

22
Q

What are the factors influencing the substitutes?

A
  1. Availability of alternatives
  2. Price-performance trade-offs
  3. Customer loyalty
23
Q

The intensity of competition among elcsting firms within the industry

A

Industry rival

25
The more alternatives available to customers, the higher the threat of substitution
Availability of alternatives
26
if substitutes offer a better price-to-performance ratio, they can easily attract customers
Price performance trade offs
27
28
Strong brand loyalty reduces the likelihood of customers switching to substitutes.
Customer loyalty
29
What are Factors Influencing Industry Rivalry?
1. Number of competitors 2. Industry growth rate 3. Product differentiation 4. Exit barrier
30
More competitors in the market lead to higher rivalry and competitive pressure.
Number of competitors
31
In a slow-growing industry, firms often fight harder for market share, intensifying rivalry
Industry growth rate
32
If products or services are perceived as similar, companies compete more on price and features
Product differentiation
33
High ext barriers (eg, specialized assets) increase rivalry because firms are reluctant to leave a struggling market
Exit barriers
34
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