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Discuss the factors to be kept in mind when mapping strategic groups.

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To understand competitive behavior and p...

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While Burger Cult Inc.operates in a monopolistically competitive industry, Citizen Telecom Inc.operates in a monopoly.Keeping this information in mind, which of the following statements is most likely true?


A) The threat of new entrants will be higher for Burger Cult Inc. than Citizen Telecom Inc.
B) Burger Cult Inc. will have more pricing power than Citizen Telecom Inc.
C) Burger Cult Inc. will have more profit potential than Citizen Telecom Inc.
D) The number of buyers will be limited for both Burger Cult Inc. and Citizen Telecom Inc.

E) A) and D)
F) A) and C)

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How is the U.S.computer hardware industry an example of monopolistic competition?

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The computer hardware industry provides ...

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Discuss the steps to be followed to effectively apply the five forces model.

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Follow these steps to apply the five for...

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A key feature of an oligopoly is that the competing firms _____.


A) are independent
B) have no pricing power
C) are interdependent
D) have no barriers to entry

E) A) and D)
F) A) and C)

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When fashion magazines face competition from fashion blogs on the web, which of the following forces in Michael Porter's five forces model primarily gets stronger?


A) The emergence of entry barriers
B) The bargaining power of suppliers
C) The availability of complements
D) The threat of substitutes

E) A) and B)
F) C) and D)

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Golden Harvest is a restaurant located inside a five-star hotel.It caters mainly to customers who are concerned about quality dining rather than the prices.In this scenario, which of the following will be a part of Golden Harvest's strategic group?


A) A nearby fast food restaurant
B) A food kiosk in an adjacent subway station
C) A premium rooftop restaurant in the same city
D) A mobile food cart parked opposite to the five-star hotel

E) A) and D)
F) A) and C)

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Which of the following external forces is a part of a firm's task environment?


A) The composition of the strategic group to which the firm belongs
B) The interest rates prevalent in the economy in which the firm operates
C) The inflation level in the economy in which the firm operates
D) The recent innovations in process technology, including lean manufacturing

E) C) and D)
F) None of the above

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How does capital requirement act as an entry barrier within an industry?

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Capital requirements describe the "price...

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Which of the following statements with regard to industry structures is true?


A) They are stable over time, not dynamic.
B) Having a large number of competitors generally equates to higher industry profitability.
C) A consolidated industry tends to be more profitable than a fragmented one.
D) Having few but large competitors increases the threat of strong competitive forces such as supplier or buyer power.

E) B) and C)
F) All of the above

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Given the industry structure in the automobile business, entering the auto manufacturing industry doesn't seem advisable.Yet Tesla Motors is joining the fray.Rather than attempting to compete head-on in internal combustion engines, Tesla Motors is entering the all-electric car segment, a much less crowded niche in the overall car industry.Which of the following is Tesla most hoping to benefit from in this market niche?


A) Network effects
B) Economies of scale
C) Customer switching costs
D) Capital requirements

E) C) and D)
F) A) and D)

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Which of the following statements is true about strategic groups?


A) It is not possible to have two different strategic groups within the same industry.
B) Rivalry within the same strategic group tends to be lower than rivalry between different strategic groups.
C) Profitability varies between different strategic groups.
D) Companies within the same strategic group are complementors to each other.

E) A) and C)
F) A) and B)

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True Gold Inc.is a company that sells 24-carat gold biscuits to companies that manufacture jewelry.Since the company operates in an industry where many other suppliers sell standardized products, it can most likely:


A) easily achieve a temporary competitive advantage.
B) easily achieve a sustainable competitive advantage.
C) only achieve competitive parity.
D) maintain its absolute advantage for long time.

E) B) and C)
F) C) and D)

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How can a firm change its industry structure from monopolistically competitive or oligopolistic to a near monopoly?


A) By reducing the entry barriers in its industry
B) By developing proprietary technology
C) By implementing frequent price-cuts
D) By decreasing its pricing power

E) B) and C)
F) None of the above

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Shield Autos Inc.has newly launched a luxury car into the European market.Which of the following would most likely NOT be a complement to the car?


A) A premium car manufactured and sold by Mova Autos Inc., a rival company
B) A bank that insures cars against theft and accidents
C) A car service station managed and run by Shield Autos Inc.
D) A stereo system that can be used as a GPS system in cars

E) None of the above
F) A) and C)

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Defend or refute the statement: "Strategic groups do not impact competitive rivalry within an industry."

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This statement is incorrect.Firms in the...

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In which of the following situations is the power of suppliers high in an industry?


A) Suppliers offer products that are undifferentiated.
B) Suppliers can credibly threaten to backward integrate into the industry.
C) Suppliers depend heavily on the industry for their revenues.
D) Suppliers' industry is more concentrated than the industry it sells to.

E) C) and D)
F) None of the above

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What is the drawback of the five forces model?

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Industry structures are not stable over ...

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Why are entry barriers in the U.S.airline industry relatively low?

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Entry barriers in the U.S.airline indust...

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Which type of industry structure is often analyzed using game theory?


A) Oligopolistic
B) Monopolistic
C) Perfectly competitive
D) Monopolistically competitive

E) A) and B)
F) B) and C)

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