Learn Smart 3 Flashcards
Which factor allowed honda to successfully enter the U.S lawn mower market despite competition?
its reputation and ts expertise with gasoline
the change agents with the biggest influence in reshaping the industry landscape are known as ____ forces.
driving
to develop a business strategy to combat competitive conditions, companies must
- identify competitive pressures
- gauge the strength of the five competitive forces
which conditions increase rivalry among competing sellers?
- when buyer demand is growing slowly
- when the cost of switching brands is low
The threat of ____ increases competitive pressure on incumbent firms.
a new entrant in an industry
Industry members with similar competitive approaches and positions in the market are known as a(n)____ group.
strategic
Which of the following components form part of a company’s macro-environment?
- political factors
- sociocultural forces
- legal/regulatory conditions
List the three steps of driving-forces analysis in order,from the first step to the last
- identify what the driving forces are
- assess whether the driving forces are acting to make an industry more or less attractive
- Determine what strategy changes are needed to prepare for the effects that are driving forces.
to match a business strategy to prevailing competitive conditions, companies must initiate actions that alter the underlying factors driving the ?
five competitive forces
the ________ framework includes cooperative interactions among industry participants and introduce the category of “complementors”
Value Net
T/F
Key Success factors are so important that all firms in a given industry must pay attention to them or else jeopardize their competitive success.
TRUE
The “L” in PESTEL analysis stands for
Legal/Regulatory conditions
The suppliers of any given industry must have sufficient_______ power in order to influence the terms of supply in their favor
bargaining
What are some of the most important factors for determining a company’s prospects for competitive success and attractive profits?
- whether the company occupies a stronger market position than rivals
- how well the company’s strategy delivers on the industry key success factors
which of the following are concepts or analytic tools for assessing a company’s industry and competitive environment?
- the five forces framework
- competitor analysis
Buyers with strong bargaining power can exert strong ____ pressures and reduce industry profitability by demanding price concessions and additional features.
competitive
Rival Sellers may try to differentiate their products from those of competitors by
- Providing improved customer service
- building higher performance products
When circumstances would increase the bargaining power of buyers?
- when buyers are comparatively large and few
- when the cost for buyers to switch brands is low
T/F
In a given industry, all the driving forces push change in the same direction but by different amounts
False
When two industries are closely related to one another, companies can be threatened by the competitive pressure produced by ____ products.
Substitute
Increasing consumer demand, lower-cost foreign inputs, and reduced trade barriers all contribute to the increasing ________ of economic markets.
Globalization
In an ideal competitive environment for earning profit
- suppliers are in weak bargaining positions
- rivalry among present sellers is muted.
the final step in evaluating an industry and competitive environment is to?
combine the results of each analytic framework to determine its prospects.
the total dollar investment needed to enter a market successfully is known as the _______ requirement.
capital
