Question 1

Applications developed for iPhones make the phone more valuable to iPhone users.  App developers are ______ to Apple.

Accepted Answer

App developers are considered complementors to Apple because they provide a product or service that enhances the value of Apple's iPhone. They are not suppliers, customers, or competitors of Apple.

Question 2

Describe and discuss the four activities of the external environmental analysis process.

Accepted Answer

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Question 3

Counterfeiting goods and exporting them from China is:

Accepted Answer

Counterfeiting goods and exporting them from China is both unethical and illegal. It violates intellectual property rights, harms legitimate businesses, and can also pose safety risks to consumers who unknowingly purchase counterfeit goods.

Question 4

Identify and describe the three major parts of the external environment. What is the purpose for a firm to collect information about these aspects of its environment?

Accepted Answer

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Question 5

The communications industry is broadly defined as encompassing all of the following EXCEPT:

Accepted Answer

The communications industry typically includes companies involved in the production and distribution of media, such as broadcast and cable television, radio, and internet media. It may also include entertainment companies and smartphone producers, who play a major role in how people consume media. However, book retailers are generally not considered part of the communications industry, as they are primarily focused on the sale and distribution of physical goods rather than the production and dissemination of media content.

Question 6

Which of the following intelligence-gathering techniques is most likely to be legal and ethical?

Accepted Answer

Attending trade show presentations given by a competitor's employees is a legal and ethical way of intelligence gathering as it is a public event and the competitor willingly presents information about their products or services. It is also a common industry practice. The other options involve unethical and possibly illegal means of gathering intelligence.

Question 7

Describe the seven segments of the general environment.

Accepted Answer

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Question 8

What do firms need to know about their competitors? What legal and ethical intelligence-gathering techniques can be used to obtain this information?

Accepted Answer

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Question 9

New Jersey and New York have the highest state taxes in the United States.  They also have high ratios of people moving out compared to people moving into the state.  This impacts the ______ aspect of demographic analysis.

Accepted Answer

The geographic distribution aspect of demographic analysis is impacted by people moving out of a state and affecting the overall population distribution. High state taxes may be a contributing factor to people choosing to leave these states.

Question 10

Identify the five forces that underlie the five forces model of competition. Explain briefly how they affect industry profit potential.

Accepted Answer

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Question 11

After Amazon lowered the price on its tablets, Samsung eventually lowered the price on its tablets.  Samsung needed to do this because:

Accepted Answer

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Question 12

The Department of Defense buys aircraft from U.S. companies for national security reasons.  This is an example of a ______ barrier to entry.

Accepted Answer

Government policy serves as a barrier to entry as it limits the competition for national security projects that can only be fulfilled by U.S. companies. In this case, the Department of Defense only purchases aircraft from U.S. companies for security reasons, which limits the ability of foreign companies to enter the market.

Question 13

What is a firm's strategic group? What effect does the strategic group have on the firm?

Accepted Answer

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Question 14

The U.S. Hispanic market is the third-largest "Latin American" economy behind Brazil and Mexico.  This impacts the ______ aspect of demographic segment analysis.

Accepted Answer

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Question 15

What are high exit barriers and how do they affect the competition within an industry?

Accepted Answer

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Question 16

Explain why it is important for organizations to analyze and understand the external environment.

Accepted Answer

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Question 17

Describe the factors that raise the competitive nature of an industry's rivalry.

Accepted Answer

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Question 18

What are barriers to entry and how do they affect competition in the industry?

Accepted Answer

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Quiz 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

Applications developed for iPhones make the phone more valuable to iPhone users. App developers are ______ to Apple.