MGT30005_Week 2

What is one main driver of barriers to entry in an industry?

• Customer loyalty

• Economies of scale

• Product variety

• Seasonal demand

What is the primary purpose of PESTLE analysis?

• To evaluate internal company performance

• To identify key competitors

• To analyze the external macro-environment

• To compare product pricing strategies

What is a major consequence of high supplier power in an industry?

• Increased competition among suppliers

• Reduced profits for organizations relying on suppliers

• Higher market entry opportunities

• Enhanced customer loyalty

Which element is part of the sociocultural factor in PESTLE?

• Government policies

• Population aging

• Technological advancements

• Market competition

What does Porter's Five Forces model help organizations determine?

• Internal capabilities

• Competitive industry dynamics

• Customer loyalty programs

• Product quality improvements

What action can companies take to reduce the threat of substitutes?

• Lower product quality

• Increase switching costs for customers

• Standardize product offerings

• Decrease differentiation

What is an example of a political factor influencing industries in the macro-environment?

• Advanced clinical R&D

• Licensing regulations

• Consumer preferences

• Supply chain disruptions

What is the primary focus of strategic group analysis?

• Understanding market segments

• Identifying competitive market forces

• Comparing organizations with similar strategies

• Reducing supplier bargaining power

What type of industry is considered unattractive according to Porter's Five Forces analysis?

• High entry barriers, weak suppliers, and few substitutes

• Low entry barriers, strong substitutes, and intense rivalry

• High profitability, moderate rivalry, and differentiated products

• Low bargaining power of buyers and suppliers

Which of the following is a characteristic of industries with high rivalry among competitors?

• Slow or no industry growth

• High customer loyalty

• Few competitors of similar size

• Low fixed costs