Exam 3: Evaluating a Companys External Environment

A) Variables chosen as axes for the map should indicate big differences in how rivals have positioned themselves to compete in the marketplace.
B) Variables chosen as axes for the map can be quantitative,qualitative,or discrete and defined in terms of distinct classes and combinations.
C) Variables selected as axes for the map should be highly correlated.
D) Several maps should be drawn if more than one pair of variables can help illuminate differences in the competitive positioning of industry members.
E) Sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group.

Correct Answer

verified

Show Answer

A) are usually triggered by changing technology or stronger learning/experience curve effects.
B) are usually spawned by growing demand for the product,an outbreak of price-cutting,and big reductions in entry barriers.
C) are major underlying causes of change in industry and competitive conditions and have the biggest influences in reshaping the industry landscape and altering competitive conditions.
D) appear when an industry begins to mature but are seldom present during early stages of the industry life cycle.
E) are usually triggered by shifting buyer needs and expectations or by the appearance of new substitute products.

Correct Answer

verified

Show Answer

A) Some buyers are a threat to integrate backward into the business of sellers.
B) The industry is composed of a few large sellers,and the customer group consists of numerous buyers that purchase in fairly small quantities.
C) Buyers have considerable discretion over whether and when they purchase the product.
D) Buyers are well informed about sellers' products,prices,and costs.
E) The costs incurred by buyers in switching to competing brands or to substitute products are relatively low.

Correct Answer

verified

Show Answer

A) Incumbent firms are unable or unwilling to launch competitive initiatives to strongly contest the entry of newcomers.
B) Industry members are struggling to earn good profits.
C) Entry barriers are relatively low.
D) Existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence.
E) Newcomers can expect to earn attractive profits,and a number of outsiders have the expertise and resources to hurdle whatever entry barriers exist.

Correct Answer

verified

Show Answer

Correct Answer

verified

Show Answer

A) are subject to the same driving forces.
B) place about the same emphasis on each distribution channel.
C) use the same key success factors to differentiate their products.
D) employ similar competitive approaches and occupy similar positions in the market.
E) have similar size market shares.

Correct Answer

verified

Show Answer

A) entry or exit of major firms
B) changing societal concerns,attitudes,and lifestyles
C) diffusion of technical know-how across more companies and more countries
D) increasing efforts on the part of industry members to collaborate closely with their suppliers
E) technological change and manufacturing process innovation

Correct Answer

verified

Show Answer

Correct Answer

verified

Show Answer

A) competitive pressures associated with rivalry among competing sellers to attract customers.
B) competitive pressures coming from the attempts of companies in other industries attempting to win buyers over to their substitute products.
C) competitive pressures associated with the threat of new entrants into the marketplace.
D) competitive pressures associated with the bargaining power of suppliers and customers.
E) All of these choices are correct.

Correct Answer

verified

Show Answer

A) to reduce the costs of switching suppliers
B) to speed the availability of next-generation components
C) to enhance the quality of parts and components being supplied and reduce defect rates
D) to squeeze out important cost savings for both themselves and their suppliers
E) to reduce inventory and logistics costs

Correct Answer

verified

Show Answer

A) low buyer switching costs and rival sellers that are relatively equal in size and capability.
B) rapid growth in buyer demand and high buyer switching costs.
C) a recent acquisition of a weak rival by an industry outsider with the intent of turning the acquisition into a major contender.
D) low barriers to entry and weakly differentiated products among rival sellers.
E) slow growth in buyer demand and strongly differentiated products.

Correct Answer

verified

Show Answer

Correct Answer

verified

Answers may vary.

Correct Answer

verified

Show Answer

A) The number of buyers is small,or a customer is particularly important to the seller.
B) Buyers are relatively well informed about sellers' products,prices,and costs.
C) Buyer needs and expectations are changing slowly or rapidly.
D) Buyer demand is weak or strong and slowly or rapidly growing.
E) Buyers pose a credible threat of integrating backward into the business of sellers.

Correct Answer

verified

C

A) only a small number of suppliers exist and when it is difficult for industry members to switch to attractive substitutes.
B) industry members incur low costs in switching their purchases from one supplier to another.
C) industry members purchase in large quantities and thus are important customers of the suppliers.
D) it makes good economic sense for industry members to vertically integrate backward.
E) the supplier industry is composed of a large number of relatively small suppliers.

Correct Answer

verified

Show Answer

A) global distribution capabilities
B) high labor productivity (especially if the production process has high labor content)
C) low distribution costs
D) accurate filling of buyer orders
E) short delivery time capability

Correct Answer

verified

Show Answer

Correct Answer

verified

Answers may vary.

A) the number of buyers is small,such that each customer's business tends to be particularly important to a seller.
B) buyer demand is growing slowly or maybe even declining.
C) the costs incurred by buyers in switching to competing brands or to substitute products are relatively high.
D) buyers are well informed about sellers' products,prices,and costs.
E) the buyer group consists of a few large buyers,and the seller group consists of numerous small firms.

Correct Answer

verified

Show Answer