The External Environment: Opportunities, Threats, Industry Competition, and Competitive Analysis

Question 1

Composed of dimensions in the broader society that influence an industry and the firms within it

Answer 1

general environment

Question 2

The set of factors that directly influences a firm and its competitive actions and responses: the threat of new entrants, the power of suppliers, the power of buyers, the threat of product substitutes, and the intensity of rivalry among competing firms

Answer 2

industry environment

Question 3

How companies gather and interpret information about their competition

Answer 3

competitor analysis

Question 4

A condition in the general environment that, if exploited effectively, helps a company reach strategic competitiveness

Answer 4

opportunity

Question 5

A condition in the general environment that may hinder a company’s efforts to achieve strategic competitiveness

Answer 5

threat

Question 6

Concerned with a population’s size, age structure, geographic distribution, ethnic mix, and income distribution

Answer 6

demographic segment

Question 7

The nature and direction of the economy in which a firm competes or may compete

Answer 7

economic environment

Question 8

The arena in which organizations and interest groups compete for attention, resources, and a voice in overseeing the body of laws and regulations guiding interactions among nations as well as between firms and various local government agencies

Answer 8

political/legal segment

Question 9

Concerned with a society’s attitudes and cultural values

Answer 9

sociocultural segment

Question 10

Includes the institutions and activities involved in creating new knowledge and translating that knowledge into new outputs, products, processes, and materials

Answer 10

technological segment

Question 11

Relevant new global markets and their critical cultural and institutional characteristics, existing markets that are changing, and important international political events

Answer 11

global segment

Question 12

Refers to potential and actual changes in the physical environment and business practices that are intended to positively respond to those changes in order to create a sustainable environment

Answer 12

sustainable physical environment segment

Question 13

A group of firms producing products that are close substitutes

Answer 13

industry

Question 14

A set of firms emphasizing similar strategic dimensions and using a similar strategy

Answer 14

strategic group

Question 15

The set of data and information a firm gathers to better understand and anticipate competitors’ objectives, strategies, assumptions, and capabilities

Answer 15

competitor intelligence

Question 16

Companies or networks of companies that sell complementary goods or services that are compatible with the focal firm’s good or service

Answer 16

complementors