Question 1

According to the book, mobility barriers are barriers inhibiting the movement of a person from one social class to another.

Accepted Answer

False

Question 2

barriers are crucial to a firm's ability to exercise an exit alternative. Which of the following is not an exit barrier?

Accepted Answer

High market growth rate is not an exit barrier. Exit barriers are factors that make it difficult or costly for a firm to exit a particular market or industry, such as specialized assets, fixed costs, and government or social barriers. Managerial pride may also be a barrier if managers are not willing to admit failure and exit a market.

Question 3

strategic group is a customer segment that is strategically important to the business.

Accepted Answer

A strategic group is a concept used in strategic management that groups companies within an industry that have similar business models or strategies, not a customer segment.

Question 4

The competitor analysis in almost all cases will benefit from considering both direct and indirect competitors.

Accepted Answer

Considering both direct and indirect competitors provides a more comprehensive understanding of the market and helps identify potential threats and opportunities. Direct competitors are businesses that offer the same products or services as the company, while indirect competitors offer different products or services that can still meet the same customer needs.

Question 5

conducting a competitor analysis, which of the following is not relevant:
a. Accounting methodologies
b. Market share
c. Image
d. Positioning strategy
e. Objectives and commitments

Accepted Answer

The answer of conducting a competitor analysis, which of the...

Question 6

of the benefits of competitor analysis is that an understanding of the current strategy and the strengths and weaknesses of a competitor can suggest opportunities and threats that will merit a response.

Accepted Answer

This statement is true. Competitor analysis can help identify potential opportunities and threats based on the strengths and weaknesses of competitors. This information can be used to inform a company's own strategy and tactics.

Question 7

value chain analysis is based upon the cost-benefit of the product as perceived by the customer.

Accepted Answer

Value chain analysis focuses on the activities within an organization that add value to a product or service, from conception to delivery, rather than on the cost-benefit as perceived by the customer.

Question 8

Some of the benefits of strategic groups include all but one of the following:

Accepted Answer

Strategic groups help in competitor analysis, investment decisions, and understanding mobility barriers, and they react similarly to industry changes, but they do not inherently produce strategic options.

Question 9

In addition to current competitors, it is important to consider potential market entrants such as firms that might engage in all but one of the following:

Accepted Answer

The answer of In addition to current competitors, it is...

Question 10

eight dimensions of competitor analysis include: current and past strategies; cost structure; exit barriers; objectives and commitment; size, growth and profitability; ______ and ______, ________, and ________; and _____ and _________.

Accepted Answer

The answer of eight dimensions of competitor analysis include: current...

Question 11

In completing a checklist on competitor assets and competencies, some of the areas to be considered include all but one of the following:

Accepted Answer

Strategic programming is not typically considered a direct asset or competency in the context of evaluating a competitor's strengths. Assets and competencies usually refer to tangible and intangible resources such as company culture, innovation capabilities, manufacturing processes, and management quality that a company directly controls and utilizes to execute its strategy, rather than the strategy formulation process itself.

Question 12

Potential market entrants might use all but one of the following to enter a market:
a. Market expansion
b. Market penetration
c. Product expansion
d. Backward/forward integration
e. Export assets or competencies

Accepted Answer

The answer of Potential market entrants might use all but...

Question 13

competitive strength grid lists the product-markets served by each competitor and identifies for each product market the strengths of each competitor.

Accepted Answer

The answer of competitive strength grid lists the product-markets served...

Question 14

Nintendo did not try to compete with Sony's in terms of high tech digital graphics.

Accepted Answer

Nintendo has generally focused on innovative gameplay mechanics and unique experiences, rather than solely focusing on graphics and tech specs. This is reflected in their choice to use less powerful hardware in many of their consoles, such as the Wii and Switch, while still producing successful and beloved games.

Question 15

way to identify competitors is to group competitors according to the degree they compete for a buyer's choice.

Accepted Answer

This is true. Competitors can be grouped based on the extent to which they compete for a buyer's choice. Some may offer similar products at similar prices, while others may offer substitute products or compete solely on price. Understanding these different levels of competition can help a business better position itself in the market.

Quiz 3: Competitor Analysis