Reference no: EM133348548

Assignment:

Question 1. The most widely encountered barriers entry candidates must overcome include all of the following, except

• small market size and special customer requirements.
• the difficulties of building a network of distributors.
• strong buyer loyalty to existing brands.
• sizable economies of scale in production.
• restrictive government policies.

Question 2. Good competitive intelligence...

• helps managers construct up-to-date strategic profiles of rivals.
• entails drawing the conclusion that companies seem destined to struggle because of their position.
• helps in determining whether a rival is gaining or losing market share.
• points to those things that every firm in the industry needs to attend to in order to retain customers and weather the competition.
• enables more accurate predictions about how long it will take a rival to copy most of what the strategy leader is doing.

Question 3. PESTEL analysis involves an evaluation of

• an industry's growth potential.
• the persistent and major underlying causes of change in both industry and competitive conditions.
• the six principal components of strategic significance in the macro-environment: political, economic, sociocultural, technological, environmental, and legal forces.
• the moves rival firms are likely to make next and how to outmaneuver the competition.
• the principal competitive pressures in a market.

Question 4. Whether buyers are able to exert strong competitive pressures on industry members depends on

• (1) the degree to which buyers have bargaining power and (2) how much buyer preferences vary within the industry.
• (1) the extent to which buyers are price-sensitive and (2) the competitiveness of the market.
• (1) the degree to which buyers have bargaining power and (2) the extent to which buyers are price-sensitive.
• (1) how much buyer preferences vary within the industry and (2) whether industry members are spending more or less on advertising.
• (1) the extent to which buyers can exercise enough bargaining power to influence the conditions of sale in their favor and (2) whether strategic partnerships between certain industry members can adversely affect other industry members.

Question 5. When a strong competitor concludes an industry is becoming less attractive, it may

• elect to simply protect its present position, investing cautiously if at all and looking for opportunities in other industries.
• see its best option as finding a buyer, perhaps a rival, to acquire its business.
• improve its long-term competitive position in the business.
• look into acquiring weaker rivals.
• invest aggressively to capture the opportunities it sees.

Question 6. The stronger the collective impact of competitive pressures associated with the five competitive forces,

• the larger the number of competitive advantage opportunities for industry members.
• the fewer companies that can achieve a competitive advantage via anything other than being the industry's low-cost leader.
• the greater number of companies that can achieve a competitive advantage via differentiation.
• the stronger are the industry's driving forces.
• the greater the number of industry key success factors.

Question 7. Suppliers with strong bargaining power can erode industry profitability by adopting all of the following, except

• accounting for a large fraction of the total costs of the industry's products.
• charging industry members exceedingly higher prices.
• limiting industry members' opportunities to find a better deal.
• passing costs to industry members.
• influencing the terms and conditions of supply in their favor.

Question 8. You have been asked to analyze the Value Net of the craft brewing and distilling industries in your state, and you have observed close relationships between those artisanal industries and local hospitality businesses (such as restaurants and lodging facilities) in the region under study. Those local hospitality businesses can be said to be

• cohabitors.
• customers.
• cooperators.
• complementors.
• competitors.

Question 9. An industry's key success factors can always be deduced by asking what factors

• depend on the relative competitive strengths of the industry leaders and how vulnerable they are to competitive attack.
• are a function of market share, entry barriers, and economies of scale, degree of vertical integration, and industry profitability that are advantageous.
• can be determined from studying the winning strategies of the industry leaders and ruling out as potential key success factors the strategy elements of those firms considered to have losing strategies.
• vary according to whether an industry has high or low long-term attractiveness.
• such as product attributes and service characteristics are crucial, and what resources and competitive capabilities are needed, and what shortcomings are evident to put a company at a competitive disadvantage.

Question 10. What is the best technique for revealing the different market or competitive position that rival firms occupy in the industry?

• five forces framework
• strategic group mapping
• the Value Net framework
• competitor analysis
• PESTEL analysis