Question 1

Abell's conceptualization of an industry as a "competitive space" included all of the following dimensions except:
A) Who?
B) What?
C) When?
D) How?
E) None of these

Accepted Answer

Abell's conceptualization of an industry as a "competitive space" included the dimensions of Who (customers and competitors), What (products and services), and How (technologies and processes). The dimension of When is not included in his conceptualization.

Question 2

The competitive dynamics of many industries are inconsistent with structuralist views of industries.

Accepted Answer

Structuralist views of industries assume that there is a stable market structure with few competitors, but in reality, many industries are characterized by intense competition with frequent entry and exit of firms, making it inconsistent with structuralist views.

Question 3

The Five Forces Model is particularly helpful in anticipating how industries will evolve over time.

Accepted Answer

The answer of The Five Forces Model is particularly helpful...

Question 4

Apple Computer used its foresight and entrepreneurial creativity to transform the computer industry along three of its most important dimensions.

Accepted Answer

Apple Computer's innovative products and marketing strategies transformed the computer industry by making computers more user-friendly, accessible, and stylish. They introduced the graphical user interface, the mouse, and popularized the concept of personal computing. Their success and influence are still felt in the industry today.

Question 5

Industry incumbents tend to be more reactive than proactive in their responses to the threats posed by new entrants to the industry.

Accepted Answer

Industry incumbents often get complacent and comfortable with their position in the market, so they may not proactively respond to the threats posed by new players until they see a significant impact on their market share or profits.

Question 6

Traditional perspectives on industry analysis assume that the focus of competition remains fixed on the traditional patterns of interaction among participating firms.

Accepted Answer

Traditional perspectives on industry analysis do assume that the focus of competition remains fixed on the traditional patterns of interaction among participating firms.

Question 7

Traditional perspectives on industry analysis assume that changes in the dimensions of industries are very significant to the survival of incumbent firms.

Accepted Answer

The answer of Traditional perspectives on industry analysis assume that...

Question 8

Demographic changes and the emergence of new customer wants and needs can create new competitive space.

Accepted Answer

Demographic changes such as aging populations or the rise of younger generations with different preferences can lead to new customer wants and needs. This can create opportunities for businesses to enter new competitive spaces by offering products or services that cater to these changing demands.

Question 9

New entrants can introduce products and services that expand the competitive space of an industry along both the product/service and the customer dimensions.

Accepted Answer

New entrants can introduce innovative products and services that can attract new customers and create new market segments, therefore expanding the competitive space of an industry.

Question 10

Online booksellers reduced the competitive space for traditional bookstores.

Accepted Answer

The answer of Online booksellers reduced the competitive space for...

Question 11

Changes in one or more of the dimensions of an industry can create new areas of opportunity that are readily accessible only to incumbent firms.

Accepted Answer

Changes in the dimensions of an industry can create new opportunities that may be accessible to both incumbent firms and new entrants, depending on the nature of the change and the resources required to exploit these opportunities.

Question 12

Defining the nature of a competitive threat is a problem for the managers of incumbent firms in an industry.

Accepted Answer

Defining the nature of a competitive threat is a challenging task for incumbent firms as they need to accurately identify the source and intensity of the threat in order to formulate an effective response strategy.

Question 13

Managers of complex organizations often develop and implement sophisticated strategies that are based on assumptions or understandings of the environment that may no longer be appropriate.

Accepted Answer

This statement is true as the environment in which an organization operates is constantly changing and managers need to regularly evaluate and adjust their strategies to ensure they remain relevant and effective. Failure to do so can lead to inefficiencies, missed opportunities, and ultimately, failure of the organization.

Question 14

The first-mover advantages of new rivals are likely to persist for a short time only.

Accepted Answer

The answer of The first-mover advantages of new rivals are...

Question 15

Incumbent firms can gain long-term benefits with a strategic withdrawal from market segments invaded by new entrants.

Accepted Answer

The answer of Incumbent firms can gain long-term benefits with...

Question 16

Managers often fail to respond effectively or to anticipate changes in their industries for which of the following reasons?
A) biases
B) limitations
C) inertia
D) A and B only
E) All of these

Accepted Answer

Managers often fail to respond effectively or to anticipate changes in their industries due to biases (such as confirmation bias or overconfidence bias), limitations (such as lack of resources or knowledge), and inertia (being resistant to change). Therefore, option E - All of these - is the correct answer.

Question 17

Why is it important for firms to beware of their own success?

Accepted Answer

The answer of Why is it important for firms to...

Quiz 5: A Dynamic Model of Industry Structuring

Abell's conceptualization of an industry as a "competitive space" included all of the following dimensions except: