To forecast industry profitability consistently accurately, professional analysts have to:
A) Look at the link between performance and industry structure, then to identify major trends and to examine the link between these trends and the forces of competition
B) Look at the probability of new entries in the industry, to determine the major trends, and to forecast the probable overall industry profit
C) Determine the five larger players in the industry and their relative bargaining power in regards to their buyers and customers, and to identify their strengths and weaknesses
D) Develop a deep understanding of how the industry creates value now and in the future, whether they use the tools described in the chapter or not.
Correct Answer:
Verified
Q47: For a specific product or service, the
Q48: Changing the industry structure is:
A)Not really within
Q49: Given the plethora of external influences, understanding
Q50: Understanding the external environment of a firm
Q51: Retaliation against a new entrant may take
Q53: The overall bargaining power of buyers depends
Q54: Regarding cost structures, having very high fixed
Q55: Understanding the competitive forces in an industry
Q56: To understand the environment, the starting point
Q57: Suppose that an industry's profitability is zero
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