BSG Chapter 3 Quiz | Questions and Correct Solutions Latest Update 2024
What makes the marketplace a competitive battlefield is - Answer - the constant jockeying of industry members to deploy whatever means in their business arsenals they believe will attract and retain buyers, strengthen their market positions, improve profitability ideally help them win a competitive edge over their rivals.Which of the following does not tend to weaken buyer bargaining power - Answer - buyer demand is weak in relation to the available supply and industry members are eager to sell more units Based on Figure 3.4, which of the following is not a typical competitive weapon that a company can use to battle rivals and attract buyers? - Answer - winning a bigger market share The strongest of the competitive forces in the five-forces model of competition is usually - Answer - the competitive pressures associated with the market maneuvering and jockeying for buyer patronage among rival sellers in the industry Which one of the following generally does not act to weaken the rivalry among competing sellers? - Answer - A situation where one or two rivals have powerful strategies and other rivals are scrambling to stay in the game Which one of the following conditions weakens the competitive pressures associated with the threat of entry? - Answer - Existing industry members have little interest in expanding their market reach by entering product segments or geographic areas where they currently do not have a presence Which of the following is not generally a "driving force" capable of producing fundamental changes in industry and competitive conditions? - Answer - Shifts upward or downward in interest rates, the inflation rate, and the unemployment rate Driving forces analysis entails - Answer - identifying the driving forces are, assessing whether the drivers of a change are, on the whole, acting to make the industry more or less attractive, determining what strategy changes are need to prepare for the impacts of the driving forces.Which one of the following is not a useful question for company managers to pose in trying to predict the likely actions of important rivals? - Answer - Which competitors are in the best strategic group in the industry The concept of strategic groups is relevant to industry and competitive analysis because - Answer - strategic group maps help identify which industry members are close rivals and which are distant rivals 1 / 3
Just how strong the competitive pressures are from substitute products depends on whether - Answer - buyers have high or low costs in switching to substitutes and whether substitutes are readily available, attractively priced, and have comparable or better performance features Which of the following is not a major question to as in gaining deep understanding about a company's industry and competitive environment? - Answer - How big is the market for the industry's product/service and how fast is it growing?A competitive environment where there is a dead to moderate rivalry among sellers, high entry barriers, wear competition from substitute products, and little bargaining leverage on the part of both suppliers and customers - Answer - is conducive to industry members earning attractive profits Whether an industry presents a company with good prospects for attractive growth and profitability - Answer - hinges in part on such considerations as the industry's growth potential, the anticipated strength of competitive forces, whether the company is strongly or weakly positioned on the industry's strategic group map, and whether and to what degree industry profitability will be favorable or unfavorably affected by the industry's driving forces The best test of whether potential entry is a string or weak competitive force is whether - Answer - the industry's growth and profit prospects are strongly attractive to potential entry candidates The rivalry among competing sellers tends to be more intense when - Answer - industry members have too much inventory or significant amounts of idle production capacity especially if the industry's product entails high storage costs or high fixed costs The bargaining leverage of suppliers is stronger when - Answer - there are no good substitutes for the items being furnished by the suppliers and there are only a few "preferred" suppliers of a particular input Which of the following generally do not qualify as a barrier to entry? - Answer - Rapid market growth and low degrees of customer loyalty to existing brands The key success factors in an industry - Answer - are those competitive factors that most affect industry members abilities to prosper in marketplace-- the particular strategy elements, product attributes, resource strengths, competitive capabilities, and market achievements that spell the difference between being a strong competitor and a weak competitor (and sometimes the difference between profit and loss) Which one of the following conditions acts to intensify the competitive pressures associated with threat of entry? - Answer - A general belief on the part of entry candidates that industry members are unwilling or unable to strongly contest the efforts of newcomers to gain a market footholdBSG Exam 1 | Questions and Correct Solutions 2024
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Factors that weaken the rivalry among competing sellers include - Answer - High buyer costs to switch brands company industry rivals that any one company's actions have little impact on rivals' businesses, and rapid growth in buyer demand Which one of the following conditions acts to intensify the competitive pressures associated with the threat of entry? - Answer - A general belief on the part of entry candidates that industry members are unwilling or unable to strongly contest the efforts of newcomers to gain a market foothold A competitive environment where there is strong rivalry among sellers, low entry barriers, strong competition from substitute products, and considerable bargaining leverage on the part of both suppliers and customers - Answer - Makes it hard for industry members to earn attractive profits Which one of the following is not a factor that affects the strength of supplier bargaining power? - Answer - Whether there are greater or fewer than ten suppliers of the item being purchased from suppliers Potential entrants are more likely to be deterred from actually entering an industry when - Answer - Industry incumbents are willing and able to launch strong defensive maneuvers to maintain their positions and make it harder for a newcomer to compete successfully and profitably Which one of the following is not a useful question for company managers to pose in trying to predict the likely actions of important rivals? - Answer - Which competitors are in the best strategic group in the industry?Which of the following is a major question to ask in assessing a company's industry and competitive environment? - Answer - What forces are driving changes in the industry, and what impact will these changes have on competitive intensity and industry profitability?The "driving forces" in an industry - Answer - are the major underlying causes of changing industry and competitive conditions and have the biggest influence on how the industry landscape will be altered Which of the following statements about the market maneuvering for buyer patronage that goes on among rival sellers of a product or service is false? - Answer - While there is constant jockeying among industry members to improve their market position and profits, the current market leaders have a 90% or better chance of continuing their leadership and ultimately winning a sustainable competitive advantage over the other industry contenders.The rivalry among competing sellers tends to become a stronger competitive force when - Answer - the products of rival sellers are essentially identical or else weakly differentiated.Which of the following is generally not considered as a barrier to entry? - Answer - Weak brand preference and low degrees of customer loyalty to existing brands Which one of the following statements about strategic groups and strategic group mapping is false? - Answer - The hardest aspect of strategic group mapping is always figuring out which of several possible
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