External Analysis Quiz

What is the primary technique used to analyze competition in an industry environment?

• SWOT analysis

• PEST analysis

• Five Forces model

• Value Chain analysis

Which of the following is NOT one of Porter's Five Forces?

• Bargaining power of buyers

• Intensity of rivalry among established companies

• Risk of entry by potential competitors

• Market saturation

What is a characteristic of an embryonic industry?

• Low barriers to entry

• Rapid growth

• High competition

• Unfamiliarity with products

In which stage of the industry life cycle do companies typically experience excess productive capacity?

• Growth

• Shakeout

• Mature

• Embryonic

What factor can increase the bargaining power of buyers?

• Limited supplier options

• Low product differentiation

• Strong brand loyalty

• High switching costs

Which of the following best describes a consolidated industry?

• Many small companies

• A few large companies

• No competition

• High entry barriers

What is a key implication of strategic groups within an industry?

• All companies face the same competitive forces

• Mobility barriers are non-existent

• Strategic groups have identical market segments

• Companies in the same group are direct competitors

What happens to rivalry in a mature industry?

• It becomes less intense

• It decreases significantly

• It often leads to price wars

• It remains constant

Which macroenvironmental factor can destabilize the economy?

• Technological change

• Demographic shifts

• Price inflation

• Global trade agreements

What is the primary focus of the Five Forces model?

• Identifying internal strengths

• Analyzing external competition

• Evaluating financial performance

• Assessing customer satisfaction