Question 1

If a firm's goods are highly differentiated, the Internet can lessen the firm's supplier bargaining power.

Accepted Answer

If a firm's goods are highly differentiated, the firm has more supplier bargaining power because it is harder for the supplier to find an alternative buyer for their unique product. The Internet may not necessarily lessen this power as the uniqueness of the product would still make it difficult for the supplier to find alternative buyers.

Question 2

Which of the following is a source of bargaining power of buyers?
A) Greater choice of products
B) High switching costs
C) Loyalty programs
D) Network effects
E) Differentiated products

Accepted Answer

Greater choice of products gives buyers the power to easily switch suppliers or negotiate for better prices and terms.

Question 3

Kathy has access to the Internet and is able to search and compare the price and quality of the products she wants to purchase. However, Martin does not have access to the Internet and stays in a remote town where he is not able to get such details regarding the product or service he wants to purchase. Such a decision situation where Kathy has more or better knowledge about products or services than Martin is known as _____.
A) strategic superiority
B) positional awareness
C) data redundancy
D) operational precedence
E) information asymmetry

Accepted Answer

The situation where Kathy has better knowledge about products or services than Martin is known as information asymmetry. This is a situation where one party in a transaction has more or better information than the other party, which can lead to an unfair advantage or exploitation. In this case, Kathy may be able to negotiate a better price or quality for the product or service she wants to purchase due to her information advantage.

Question 4

Political shock and social changes can help alter the competitive landscape.

Accepted Answer

Political shock and social changes can lead to shifts in policies, regulations, and public sentiment that can affect businesses and industries, creating opportunities and challenges that alter the competitive landscape. For example, changes in immigration policies can impact labor availability and costs, while shifts in consumer preferences can reshape market dynamics.

Question 5

Changes that impact one industry do not necessarily impact other industries in the same way.

Accepted Answer

This statement is true. Different industries have unique operations, structures, and supply chains that can be impacted to varying degrees by a particular change. For example, a change in government regulations may significantly affect the pharmaceutical industry, but have little impact on the technology industry.

Question 6

A decision situation where one party has more or better information than its counterparty is called a(n) _____.

Accepted Answer

The answer of A decision situation where one party has...

Question 7

The degree to which complete information is available is known as _____.
A) information assurance
B) data proximity
C) operational alertness
D) price transparency
E) data consolidation

Accepted Answer

The term "price transparency" refers to the degree to which complete information is available, particularly in regards to pricing.

Question 8

Which of the following is one of Porter's five forces?
A) Availability of coopetitors in the market
B) Total cost of ownership
C) Purchasing power parity of consumers
D) Threat of new entrants
E) Strength of intellectual property laws

Accepted Answer

The threat of new entrants is one of Porter's five forces, which refers to the degree of competition posed by new businesses entering the market. The other options listed are not part of Porter's five forces.

Question 9

What are the "five forces of industry competitive analysis" put forth by Porter? What effect has the Internet had on the bargaining power of buyers and sellers?

Accepted Answer

The answer of What are the "five forces of industry...

Question 10

_____, also known as the Industry and Competitive Analysis, is a popular framework for examining a firm's competitive environment.

Accepted Answer

The answer of _____, also known as the Industry and...

Quiz 2: Strategy and Technology: Concepts and Frameworks for Understanding What Separates Winners From Losers

If a firm's goods are highly differentiated, the Internet can lessen the firm's supplier bargaining power.

Which of the following is a source of bargaining power of buyers?

Political shock and social changes can help alter the competitive landscape.

Changes that impact one industry do not necessarily impact other industries in the same way.

A decision situation where one party has more or better information than its counterparty is called a(n) _____.

The degree to which complete information is available is known as _____.

Which of the following is one of Porter's five forces?

What are the "five forces of industry competitive analysis" put forth by Porter? What effect has the Internet had on the bargaining power of buyers and sellers?

_____, also known as the Industry and Competitive Analysis, is a popular framework for examining a firm's competitive environment.