Analysis of the industry

The industry analysis is known as

• PESTEL

• Porte's Five forces

• SWOT

• No true answer

The entry barriers to enter specific industry can be

• government regulations

• economies of scale

• capital requirements

• all above

Economies of a scale means:

• to produce higher volume of products at lower price

• to produce less products at higher price

• No true answer

If the company has a patent for the production of a specific product, then:

• the threat of substitutes is higher

• the threat of substitutes is minimal

• no true answer

The analysis of the external environment gives information about:

• the threats for the company

• the opportunities that exist for the companies

• the strengths of the company

• the weaknesses of the company

The bargaining power of customers is high when:

• there is no other producer of this product

• the switching costs are low

• the product is differentiated;

• no true answer

Product differentiation means:

• to offer one and the same product on the market

• to offer differences in the products such as quality

• no true answer

Suppliers are strong when:

• they are few on the market

• the industry they supply is very important strategically for them

• customers have low switching costs

• no true answer

The intensity of rivalry is high when:

• the competitors are few on the market

• the balance of the competitors is the same

• the industry has slow growth

• all are true

Which can be exit barriers to stop companies leave the industry

• specialized assets

• strategic interrelationships

• emotional barriers

• all above