A) sellers in an industry provide similar products and generally their cost structures are different because of competitive advantages in their operation.
B) some sellers may be less sensitive than others to price, quality, or service differences.
C) along the various stages of the value chain sellers are conducive to earning attractive profits.
D) the industry is a highly cohesive structure with limited fragmentation and few industry members.
E) sellers are large and few in number relative to the number of buyers.
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A) small strategic groups are always less profitable than large strategic groups.
B) entry and exit barriers are different for each strategic group.
C) across-group rivalry is always weakest at the outer edge of the strategic group map.
D) industry driving forces and competitive pressures favor some groups and disadvantage others.
E) key success factors are substantially different for differently positioned industry participants.
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A) is competitively unattractive from the standpoint of earning good profits.
B) offers little ability to build a sustainable competitive advantage.
C) is highly conducive to achieving strong product differentiation and high customer loyalty to the company's brand.
D) offers moderate to good prospects for making a reasonable profit and building a sustainable competitive advantage.
E) requires that industry members have a strongly differentiated product offering in order to be profitable.
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A) determines the strength of the industry's driving forces.
B) determines the extent of the competitive pressure on industry profitability.
C) means that fewer companies can achieve a competitive advantage via anything other than being the industry's low-cost leader.
D) means there will be a larger number of competitive advantage opportunities for industry members.
E) means there will be a greater number of industry key success factors.
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A) which rivals have been in business longer and thus have greater access to experience curve effects.
B) which rivals have newer manufacturing facilities and thus have achieved greater product quality.
C) which strategic groups have the highest profit margins and the highest customer switching costs and thus represent key operating characteristics.
D) that some strategic groups are more favorably positioned than others because they confront weaker competitive forces and/or because they are more favorably impacted by industry driving forces.
E) which strategic groups are currently being shunned by customers because of high prices and relatively low product quality.
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A) the firm, substitutes, suppliers, customers, and competitors.
B) the firm, suppliers, customers, competitors, and driving forces.
C) substitutes, suppliers, customers, competitors, and driving forces.
D) the firm, suppliers, customers, competitors, and complementors.
E) substitutes, suppliers, customers, competitors, and potential entrants.
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A) incumbent firms are willing and able to be aggressive in defending their market positions against entry.
B) incumbent firms are complacent.
C) buyers are not particularly price-sensitive and the industry already contains a dozen or more rivals.
D) the relative cost positions of incumbent firms are about the same, such that no one incumbent has a meaningful cost advantage.
E) buyer switching costs are moderately low because of strong product differentiation among incumbent firms.
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A) current strategy, financial health, market share, resources and capabilities.
B) strategic group, assumptions, resources and capabilities, financial health.
C) current strategy, assumptions, resources and capabilities, objectives.
D) market share, strategic group, driving forces, assumptions.
E) resources and capabilities, assumptions, current strategy, objectives.
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Competitive pressures from buyers decrea...View Answer
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A) are subject to the same driving forces.
B) place about the same emphasis on various distribution channels.
C) use the same key success factors to differentiate their products.
D) pursue essentially identical strategies and have similar market positions.
E) pursue varying distribution channels and product attributes, and have customer service attributes that differentiate them in the marketplace.
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A) the speed with which general economic conditions and interest rates are changing.
B) the extent to which buyers can exercise enough bargaining power to influence the conditions of sale in their favor and whether strategic partnerships between certain industry members can adversely affect other industry members.
C) how many buyers purchase all of their requirements from a single seller versus how many purchase from several sellers.
D) the number of buyers versus the number of sellers.
E) whether industry members are spending more or less on advertising.
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A) the competitive pressures that stem from the ready availability of attractively priced substitute products.
B) the competitive pressures associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry.
C) the benefits that emerge from close collaboration with suppliers and the competitive pressures that such collaboration creates.
D) the competitive pressures associated with the potential entry of new competitors.
E) the bargaining power and leverage that large customers are able to exercise.
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A) political factors including the extent to which government intervenes in the economy
B) economic conditions that include the general economic climate and specific factors such as interest rates, inflation rate, and unemployment rate, as well as conditions in the stock and bond markets that can affect consumer confidence
C) sociocultural forces including societal values, attitudes, cultural factors, and lifestyles that impact business
D) technological factors that include the pace of change and technical developments that have the potential for impacting society
E) environmental forces that include the competitive structure, the degree of industry fragmentation, and the mobility barriers that inhibit business
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A) good substitutes are readily available.
B) there are fewer number of substitute products.
C) substitutes have lower performance features.
D) buyers incur high costs in switching to substitutes.
E) substitutes are priced above the market.
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A) the five forces framework.
B) PESTEL.
C) the driving forces model.
D) strategic group mapping.
E) SWOT analysis.
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A) one strategic variable and one financial variable should be used as axes for the map.
B) it is important for the variables used as axes to be highly correlated.
C) the best variables to use as axes for the map are those that identify the competitive characteristics that delineate strategic approaches used in the industry.
D) it is important to use price as the variable for the vertical axis.
E) the primary objective is to determine which strategic groups are profitable and which are not.
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A) building the picture of competition in three steps: (1) identify the different parties involved, along with specific factors that bring about competitive pressures; (2) evaluate how strong the pressures stemming from each of the five forces are (strong, moderate or weak) ; and (3) determining whether the collective impact of the five competitive forces is conducive to earning attractive profits in the industry.
B) building the picture of competition in two steps: (1) determining which rival has the biggest competitive advantage and (2) assessing whether the competitive advantages possessed by various industry members allow most industry members to earn above-average profits.
C) evaluating whether competition is being intensified or weakened by the industry's driving forces and key success factors.
D) assessing whether the collective impact of all five forces is weak enough to allow industry members to go on the offensive or use a defensive strategy to insulate against fierce competitive pressures.
E) gauging the overall strength of competition based on how many industry rivals are operating with a competitive advantage and how many are operating at a competitive disadvantage.
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A) are a function of market share, entry barriers, and economies of scale, degree of vertical integration, and industry profitability that are advantageous.
B) vary according to whether an industry has high or low long-term attractiveness.
C) 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.
D) 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.
E) depend on the relative competitive strengths of the industry leaders and how vulnerable they are to competitive attack.
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A) determining whether forces are acting to cause fundamental changes in industry conditions and/or the industry's competitiveness
B) determining whether forces are acting to cause industry rivals to shift to a different strategic group
C) determining whether forces are acting to strengthen or weaken market demand
D) determining whether forces are acting to make competition more or less intense
E) determining whether forces are acting to raise or lower industry profitability
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A) the potential for buyers to exercise strong bargaining power.
B) the diversity of competitors in terms of long-term direction, objectives, strategies, and countries of origin.
C) the number of firms pursuing differentiation strategies versus the number pursuing low-cost leadership strategies and focus strategies.
D) the extent to which some rivals have more than two competitively valuable competencies or capabilities.
E) whether the industry is characterized by a strong learning/experience curve and whether the industry is composed of many or few strategic groups.
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