Deck 8: Note : Industry Analysis

Question 1

Which of the following would most likely be a useful tool when analyzing future changes in an industry?

A) strategic priority analysis
B) customer value chain
C) inbound logistics
D) product life cycle

Answer 1

D

Question 2

________ is a market entry barrier that exists when a service becomes more valuable as more people use it.

A) Forward integration
B) Capital requirements
C) Economies of scale
D) Network effects

Answer 2

D

Question 3

In an industry characterized by ________,customers have significant bargaining power.

A) high switching costs
B) undifferentiated products
C) low concentrations of buyers
D) complex backward integration

Answer 3

B

Question 4

In which of the following situations is the bargaining power of suppliers especially strong?

A) Products are highly specialized.
B) Suppliers rely on single customers.
C) Customers have low switching costs.
D) Affordable, substitute products exist.

Question 5

How do potential substitutes threaten sales in an industry? Illustrate your answer with specific examples.

Question 6

Which of the following industries has the highest average profitability?

A) hotels
B) airlines
C) soft drinks
D) grocery stores

Question 7

Customer loyalty,patented technologies,and managerial know-how are market entry barriers that affect both small and large firms.

Question 8

According to Michael E.Porter,all of the following are forces that shape industry competition EXCEPT the ________.

A) expansion of global markets
B) bargaining power of buyers
C) threat of substitute products
D) rivalry of existing competitors

Question 9

In the automobile parts industry,products are undifferentiated,so the industry is most likely characterized by ________.

A) low switching costs
B) patented technologies
C) high capital requirements
D) limited distribution channels

Question 10

The first steps of an industry analysis involve defining the industry and analyzing potential future changes in the industry.

Question 11

Which of the following factors is LEAST likely to increase a rivalry between existing industry competitors?

A) high exit barriers
B) high industry growth
C) undifferentiated products
D) numerous competitors of equal size

Question 12

When defining an industry for an industry analysis,which of the following dimensions would LEAST likely be assessed?

A) customers
B) geographic scope
C) available technology
D) value chain activities

Question 13

Which of the following would most likely characterize a highly competitive industry?

A) high fixed costs
B) high switching costs
C) high marginal costs
D) high industry growth

Question 14

An industry with a high concentration of buyers and undifferentiated products is most likely highly competitive.

Question 15

What is the first step of an industry analysis?

A) assessing competitive forces in the industry
B) analyzing future changes in the industry
C) identifying standards of the industry
D) defining the industry