A) the collective impact of the driving forces will act to increase/decrease market demand, increase/decrease competition, and raise/lower industry profitability in the years ahead.
B) it will become more or less important to aim the company's strategy at being the industry's low-cost producer.
C) the driving forces will have a bigger impact on company profitability than competitive forces.
D) the industry is likely to become more or less vertically integrated and why.
E) competitive advantages are likely to grow or diminish in importance.
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A) apparel
B) tire manufacturing
C) electric and gas utilities
D) commercial airlines
E) video streaming services
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Competitive pressures from buyers increa...View Answer
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A) speculative value because it compels the firm to drive strategic intent and collective choice into operating practices.
B) theoretical value because it allows managers to visualize the many different dimensions of the preferred forces that allow for industry functionality.
C) practical value and is basic to the task of thinking strategically about where the industry is headed and how to prepare for the changes ahead.
D) no real analytical value because the driving forces are already established in the marketplace and it is too late to make astute and timely strategy adjustments.
E) perceived value and is associated with identifying the close and distant rivals within an operating industry.
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The five forces framework holds that com...View Answer
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A) lacks powerful driving forces.
B) gives each industry competitor the best potential for building sustainable competitive advantage over rival firms.
C) makes it challenging for industry members to compete successfully unless they can strongly differentiate their products.
D) is conducive to industry members earning attractive profits.
E) requires that industry members have low costs in order to be competitively successful.
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A) it is rare for such partnerships to have much competitive impact on those industry members not having such partnerships.
B) one unfortunate outcome is that it tends to give the supply partners much enhanced bargaining power in their dealings with these industry members.
C) there is a strong likelihood such partnerships will put increased competitive pressure on those industry members who lack productive collaborative relationships with their suppliers.
D) there is a high likelihood of such partnerships reducing competitive pressures on ALL industry members, provided technological change in the suppliers' business is rapid and the item being supplied is a commodity.
E) the usual result is to reduce competitive pressures on all industry members, provided the costs of the items furnished by supply chain partners amount to 50 percent or more of total cost.
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Supplier bargaining power is stronger wh...View Answer
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Threat of entry is a stronger force when...View Answer
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A) is stronger when firms strive to be low-cost producers than when they use differentiation and focus strategies.
B) is often weak when rivals have emotional stakes in business or face high exit barriers.
C) is largely unaffected by whether industry conditions tempt rivals to use price cuts or other competitive weapons to boost unit sales.
D) tends to intensify when strong companies with sizable financial resources, proven competitive capabilities, and respected brand names hurdle entry barriers looking for growth opportunities and launch aggressive, well-funded moves to transform into strong market contenders.
E) is weaker when more firms have weakly differentiated products, buyer demand is growing slowly, and buyers have moderate switching costs.
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A) geographic market scope and degree of vertical integration
B) brand name reputation and distribution channel emphasis
C) product quality and product-line breadth
D) level of profitability and size of market share
E) price/perceived quality and image range and the extent of buyer appeal
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A) identify easily the entry and exit barriers for each strategic group.
B) pinpoint precisely which firms are in profitable strategic groups and which are not.
C) identify which competitive forces are strong and which are weak.
D) measure accurately whether across-group rivalry is stronger than within-group rivalry, and vice versa.
E) reveal which companies are close competitors and which are distant rivals, and that not all positions on the map are equally attractive.
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A) it identifies who the industry's current market share leaders are.
B) it allows a company to anticipate what moves rivals are likely to make next and to craft its own strategic moves with some confidence.
C) it helps identify which rival is in which strategic group.
D) it enables company managers to determine which rival has the worst strategy and how to avoid making the same strategy mistakes.
E) it enables more accurate predictions about how long it will take a particular rival to copy most of what the strategy leader is doing.
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A) financially strong industry members send strong signals that they will launch strategic initiatives to combat the entry of newcomers.
B) the industry's market growth is rapid.
C) the pool of entry candidates is large and some have resources that would make them formidable market contenders.
D) newcomers can be expected to earn attractive profits.
E) buyers have little loyalty to the brands and product offerings of existing industry members.
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A) changes in the long-term industry growth rate
B) increasing globalization of the industry
C) product innovation and technological change
D) movement in the economy and in interest rates
E) regulatory influences and government policy changes
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A) changes in the long-term industry growth rate
B) entry or exit of major firms
C) shifts in who buys the product and how the product is used
D) changes in costs and efficiency
E) regulatory influences and government policy changes
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A) pursue avenues that expose the firm to as many of the different competitive pressures as possible.
B) shift the competitive battle in favor of the firm by altering the underlying factors driving the five forces.
C) pursue ways to identify and complement the five forces contradictions and inferences to attract competitive growth opportunities.
D) pursue avenues that promote strategic thinking about how to contest competitor strengths and weaknesses and to create a checklist of potential profitability preferences.
E) shift societal concerns, attitudes, and lifestyles by altering the pattern of competition.
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A) the relationship between the buyer market and seller market
B) the degree to which the seller is a manufacturer of goods and services in substantial quantities
C) the degree to which buyers pose a credible threat to integrate backward into the product market of sellers
D) the degree to which buyers are well-informed about a seller's products, prices, and costs
E) the degree to which industry goods are standardized and undifferentiated
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A) their costs to switch to competing brands or to substitute products are relatively high.
B) a particular seller's product delivers quality or performance that is very important to the buyer and is not matched by other brands.
C) they buy the product infrequently or in small quantities and are not particularly well-informed about sellers' products, prices, and costs.
D) buyer demand is growing rapidly.
E) buyers are price-sensitive because the product represents a significant portion of their purchasing budget.
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Threat of entry is a stronger force when...View Answer
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