MGMT-Industry and Competitor Analysis

2) A(n) ________ is a group of firms producing a similar product or service, such as soft drinks, airlines, or smartphone apps.

• A) cluster

• B) division

• C) sector

• D) industry

• E) network

3) Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n) ________ analysis.

• A) business

• B) industry

• C) competitor

• D) strategic

• E) market

4) Each quarter, Craig Anderson, who owns a chain of auto repair shops, does a detailed analysis of his firm's competitors. This analysis is called ________ analysis.

• A) competitor

• B) challenger

• C) strategic

• D) participant

• E) industry

5) Industries that sell products to seniors, such as the eyeglass industry and the hearing aid industry, are benefiting from the aging of the population, which is an important ________ trend.

• A) environmental

• B) business

• C) commerce

• D) statutory

• E) competitive

6) Many firms benefit from an increasing ability to outsource manufacturing or service functions to lower-cost foreign countries. This trend is referred to in the textbook as a(n) ________ trend.

• A) business

• B) environmental

• C) commerce

• D) statutory

• E) economic

11) The price of prescription medicine is high, partly because when someone is sick there is no real alternative to buying medicine if they want to get better. Which of Porter's five forces explains how this aspect of the prescription medicine industry helps keep profitability high?

• A) Rivalry Among Existing Firms

• B) Threat of New Entrants

• C) Threat of Substitutes

• D) Bargaining Power of Buyers

• E) Bargaining Power of Suppliers

13) Which of Porter's five forces is most directly influenced by the number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs?

• A) Threat of New Entrants

• B) Rivalry Among Existing Firms

• C) Threat of Substitutes

• D) Bargaining Power of Buyers

• E) Bargaining Power of Suppliers

14) Supplier concentration, switching costs, attractiveness of substitutes, and threat of forward integration are factors that have a direct impact on ________.

• A) threat of new entrants

• B) bargaining power of buyers

• C) rivalry among existing firms

• D) threat of substitutes

• E) bargaining power of suppliers

Market Penetration is:

• Selling a new product into a new market

• Selling an old product into an old market

• Selling an old service into a new market

• Selling an existing product into an existing market

The process of determining whether an entrepreneur's idea is a viable foundation for creating a successful business is known as a ________.

• business plan

• strategic analysis

• industry analysis

• feasibility analysis