CHAPTER 8

Question 1

Is a statement that identifies a business’s strategies to compete, its goals and the plans and policies that will be required to carry out those goals.

Answer 1

Competitive strategy

Question 2

It provide a competitive advantage by helping an organization implement its strategic goals and increase its performance and productivity

Answer 2

Strategic Information Systems (SISs)

Question 3

Any information system that helps an organization gain a competitive advantage or reduces a competitive disadvantage is a ______________.

Answer 3

Strategic Information Systems (SISs)

Question 4

Is the best-known framework for analyzing competitiveness

Answer 4

Michael Porter’s competitive forces model (Porter, 1985).

Question 5

Porter’s model five major forces that can endanger or enhance a company’s position in a given industry

Answer 5

1. The threat of entry of new competitors.
2. The bargaining power of suppliers.
3. The bargaining power of customers.
4. The threat of substitute products and services.
5. The rivalry among existing firms in the industry.

Question 6

Is a product or service feature that customers have learned to expect from organizations in a certain industry.

Answer 6

Entry barrier

Question 7

_________________________ will enter your market is high when entry is easy and low when significant barriers to entry exist.

Answer 7

The threat of entry of new competitors.

Question 8

Is high when buyers have a few choices from whom to buy and low when buyers have many choices.

Answer 8

Supplier power

Question 9

is high when buyers have many choices from whom to buy and low when buyers have few choices.

Answer 9

Buyer power

Question 10

In contrast, this (blank) reduce buyer power

Answer 10

loyalty programs

Question 11

are in greatest danger from substitutes.

Answer 11

Information-based industries

Question 12

If there are many substitutes for an organization’s product or services, the threat of substitutes is high. If there are few substitutes, the threat is low. True or False

Answer 12

TRUE

Question 13

The threat from rivalry is low when there is intense competition among many firms in an industry. The threat is high when the competition is among fewer firms and is not as intense.

TRUE OR FALSE

Answer 13

FALSE
(The threat from rivalry is high when there is intense competition among many firms in
an industry. The threat is low when the competition is among fewer firms and is not as
intense)