Week 2 competitive strategy

Porter's competitive strength - "the threat of new entrants" - depends most on the following factor

• potential profitability of the industry

• cost of entry to the industry

• appearance of replacement products

• the current number of competitors in the industry

High supplier power is expressed via all of the following, EXCEPT

• requiring higher quality products and services

• putting up prices of raw materials

• determining the terms of delivery of raw materials

• gaining advantage via the shortage or absence of substitutes for raw materials

Porter's competitive strength - "internal rivalry" strongly depends on the following factors:

• heights of exit barriers in the industry

• the presence of substitute products

• price competition in the industry

• the structure of industry competition

Availability of substitute products...(choose 1 answer)

• does not affect the price power of buyers

• increases the price power of buyers

• increases the export-import balance

• reduces the price power of buyers

Porter's analysis of competitive forces is necessary for...

• determining the company's financial position in comparison with competitors

• finding out the reasons for the current state of competition in the industry under study

• finding out the strengths and weaknesses of competitors in the industry

The idea is to offer better value to customers through the same value at a lower price.

• Cost leadership strategy

• Differentiation strategy

• Focus (or niche) strategy

The company targets customers who are willing to pay premium prices

• Cost leadership strategy

• Differentiation strategy

• Focus (or niche) strategy

a company concentrates on serving the needs of a particular segment or niche of an industry such as a geographical market, type of customer or product line

• Cost leadership strategy

• Differentiation strategy

• Focus (or niche) strategy

Aspects of VRIO (a resource-based framework) - remove the wrong aspect

• value

• rarity

• imitability

• organisational

• individual

Which of the following will not create a sustainable competitive advantage?

• resources that are valuable

• resources that are rare and hard to acquire

• resources that can be learnt and adopted by industry peers

• resources that are applied and organized to fit organisational strategy