S07- Industrial and Market Analysis Flashcards
A global e-commerce platform plans to expand its operations into a region with stringent data privacy laws and high import taxes.
Question:
How should the company adjust its strategy to account for these political factors?
A. Delay expansion until the laws are revised.
B. Establish local servers and negotiate tax exemptions.
C. Avoid entering the market due to high risks.
D. Increase product prices to offset import taxes.
B. Establish local servers and negotiate tax exemptions.
Establishing local servers addresses data privacy laws, and negotiating tax terms helps reduce import tax impacts.
An agricultural equipment manufacturer wants to expand to a country experiencing rapid inflation and currency depreciation.
Question:
What strategy should the company adopt to minimize economic risks?
A. Offer financing options to customers in local currency.
B. Focus solely on exporting goods to the market.
C. Delay entering the market until inflation stabilizes.
D. Price products in a stable foreign currency, like USD.
D. Price products in a stable foreign currency, like USD.
Pricing in a stable currency reduces risks associated with currency depreciation and inflation.
A car manufacturer plans to adopt AI-based predictive maintenance in its vehicles but faces challenges with limited 5G infrastructure in key markets.
Question:
What action should the company prioritize?
A. Develop a non-AI solution to maintain compatibility with existing infrastructure.
B. Focus on markets with robust 5G adoption.
C. Partner with telecom providers to accelerate 5G implementation.
D. Delay AI adoption until 5G becomes widely available globally.
C. Partner with telecom providers to accelerate 5G implementation.
Collaborating with telecom providers aligns long-term infrastructure upgrades with the company’s goals.
A beverage company plans to launch a premium iced coffee line. It segments its market into urban areas with a warm climate.
Question:
What potential risk does this segmentation strategy pose?
A. Overestimating customer demand in rural areas.
B. Ignoring potential customers in colder regions who drink iced coffee.
C. Limiting distribution channels in warm regions.
D. Failing to account for seasonal fluctuations in demand.
D. Failing to account for seasonal fluctuations in demand.
Geographic segmentation risks overlooking how demand changes seasonally, even in warm climates.
A luxury travel company targets customers who prioritize experiential travel over material possessions.
Question:
What marketing message would resonate most with this segment?
A. Highlighting exclusive discounts and deals.
B. Emphasizing luxury accommodations and amenities.
C. Showcasing unique cultural experiences and adventure opportunities.
D. Providing comparisons with competitor offerings.
C. Showcasing unique cultural experiences and adventure opportunities.
This message aligns with experiential travelers who prioritize experiences over material possessions.
A tech startup has a unique AI algorithm but faces aggressive competition from larger firms with higher R&D budgets.
Question:
How can the company leverage its strengths to counter threats?
A. Focus on licensing its algorithm to larger competitors.
B. Partner with academic institutions to enhance the algorithm.
C. Offer free trials to compete on volume with larger firms.
D. Shift focus to niche markets where competition is less intense.
D. Shift focus to niche markets where competition is less intense.
Targeting niche markets minimizes direct competition and capitalizes on the startup’s unique strengths.
A wearable health device company is evaluating a new market with a large TAM (Total Addressable Market) but low SOM (Serviceable Obtainable Market).
Question:
What should be the company’s immediate focus?
A. Develop products to capture the entire TAM.
B. Adjust the product to align better with the SAM (Serviceable Available Market).
C. Target SOM and develop marketing campaigns to increase its share.
D. Postpone market entry until the SOM increases.
C. Target SOM and develop marketing campaigns to increase its share.
Focusing on the SOM ensures the company captures the most immediately addressable market.
A cosmetics brand aims to use biodegradable packaging but faces resistance due to higher production costs.
Question:
What strategy should the company prioritize?
A. Absorb the costs and position the brand as environmentally friendly.
B. Delay adoption of biodegradable packaging until costs decrease.
C. Use a mix of traditional and biodegradable packaging.
D. Focus marketing efforts on the product’s quality over its packaging.
A. Absorb the costs and position the brand as environmentally friendly.
This strategy creates differentiation and aligns with eco-conscious consumers’ values.
A fitness app segments its market based on user activity levels: beginners, intermediates, and advanced users.
Question:
What challenge might this segmentation approach create?
A. Overlapping segments leading to inconsistent messaging.
B. Difficulty retaining advanced users due to limited features.
C. Alienating beginner users with complex product offerings.
D. Failing to scale the product beyond niche markets.
A. Overlapping segments leading to inconsistent messaging.
Behavioral segmentation can cause overlap, making it harder to craft clear, targeted messaging.
A biotech company relies heavily on a single supplier for key raw materials, which increases operational risks.
Question:
What action should the company take to address this weakness?
A. Diversify suppliers to reduce dependency.
B. Negotiate exclusive agreements with the current supplier.
C. Develop in-house manufacturing capabilities for raw materials.
D. Stockpile inventory to avoid short-term disruptions.
A. Diversify suppliers to reduce dependency.
Supplier diversification reduces operational risks and increases resilience.
An online streaming service plans to expand into regions with strict copyright enforcement.
Question:
What is the best strategy to comply with legal factors?
A. Partner with local studios to license content.
B. Launch globally without regional-specific licensing.
C. Focus on regions with relaxed copyright laws first.
D. Avoid offering localized content to reduce licensing risks.
A. Partner with local studios to license content.
Licensing agreements ensure compliance with strict copyright enforcement.
A startup offering career coaching targets recent college graduates. It segments its audience by age and educational background.
Question:
What additional demographic factor could enhance segmentation?
A. Income level and employment status.
B. Geographic location and cultural background.
C. Lifestyle and psychographic preferences.
D. Social media usage habits.
A. Income level and employment status.
Including income and employment status provides deeper insights into the purchasing power and relevance of services.
A renewable energy firm identifies favorable government subsidies in emerging markets as a growth opportunity.
Question:
What should the firm prioritize to capitalize on this opportunity?
A. Increase R&D spending on next-generation technologies.
B. Expand operations into emerging markets immediately.
C. Establish partnerships with local governments and suppliers.
D. Focus on educating customers about renewable energy benefits.
C. Establish partnerships with local governments and suppliers.
Building partnerships helps secure resources and navigate emerging markets effectively.
A startup enters a declining industry but offers innovative solutions that address unmet customer needs.
Question:
What strategic advantage might the startup have?
A. Facing less competition as firms exit the market.
B. Expanding the market by targeting TAM.
C. Increasing profitability by raising prices.
D. Entering new markets to diversify revenue streams.
A. Facing less competition as firms exit the market.
Entering a declining industry with innovation offers an advantage due to reduced competition.
A retail company wants to monitor competitors’ pricing strategies in real-time.
Question:
What tool would be most effective for this purpose?
A. Web scraping and dynamic pricing algorithms.
B. Manual price monitoring by in-house staff.
C. Customer surveys to gauge price sensitivity.
D. Relying on periodic industry reports.
A. Web scraping and dynamic pricing algorithms.
These tools allow real-time monitoring and adjustments to maintain competitive pricing.
