BSG Exam 1 Questions with Complete
Solutions19
Factors that weaken the rivalry among competing sellers include - ANSWERS-High buyer costs to
switch brands company industry rivals that any one company's actions have little impact on
rivals' businesses, and rapid growth in buyer demand
Which one of the following conditions acts to intensify the competitive pressures associated
with the threat of entry? - ANSWERS-A general belief on the part of entry candidates that
industry members are unwilling or unable to strongly contest the efforts of newcomers to gain a
market foothold
A competitive environment where there is strong rivalry among sellers, low entry barriers,
strong competition from substitute products, and considerable bargaining leverage on the part
of both suppliers and customers - ANSWERS-Makes it hard for industry members to earn
attractive profits
Which one of the following is not a factor that affects the strength of supplier bargaining
power? - ANSWERS-Whether there are greater or fewer than ten suppliers of the item being
purchased from suppliers
Potential entrants are more likely to be deterred from actually entering an industry when -
ANSWERS-Industry incumbents are willing and able to launch strong defensive maneuvers to
maintain their positions and make it harder for a newcomer to compete successfully and
profitably
Which one of the following is not a useful question for company managers to pose in trying to
predict the likely actions of important rivals? - ANSWERS-Which competitors are in the best
strategic group in the industry?
,Which of the following is a major question to ask in assessing a company's industry and
competitive environment? - ANSWERS-What forces are driving changes in the industry, and
what impact will these changes have on competitive intensity and industry profitability?
The "driving forces" in an industry - ANSWERS-are the major underlying causes of changing
industry and competitive conditions and have the biggest influence on how the industry
landscape will be altered
Which of the following statements about the market maneuvering for buyer patronage that
goes on among rival sellers of a product or service is false? - ANSWERS-While there is constant
jockeying among industry members to improve their market position and profits, the current
market leaders have a 90% or better chance of continuing their leadership and ultimately
winning a sustainable competitive advantage over the other industry contenders.
The rivalry among competing sellers tends to become a stronger competitive force when -
ANSWERS-the products of rival sellers are essentially identical or else weakly differentiated.
Which of the following is generally not considered as a barrier to entry? - ANSWERS-Weak
brand preference and low degrees of customer loyalty to existing brands
Which one of the following statements about strategic groups and strategic group mapping is
false? - ANSWERS-The hardest aspect of strategic group mapping is always figuring out which of
several possible strategic group maps represents the single one best map for portraying how
competing firms are positioned.
Which of the following are important considerations in evaluating whether an industry's outlook
is conducive to good profitability? - ANSWERS-The industry's growth potential, the anticipated
strength of competitive forces, and whether the industry and the company are being favorably
or unfavorably impacted by macro-environmental factors
Which of the following are most unlikely to qualify as driving forces? - ANSWERS-Mounting
competition from substitutes, increasing efforts on the part of industry members to collaborate
, with suppliers, and the speed with which the number of industry key success factors is either
rising or falling
In which of the following circumstances are competitive pressures associated with the
bargaining power of buyers not relatively strong? - ANSWERS-When buyer demand is growing
rapidly and sellers' products are strongly differentiated
The competitive pressures from substitute products tend to be weaker when - ANSWERS-buyers
have high costs in switching to substitutes
based on Figure 3.4, which of the following is not a typical competitive weapon that a can use to
battle rivals and attract buyers? - ANSWERS-Constructing the biggest production plant of any
company in the industry
The best test of whether potential entry is a strong or weak competitive force is whether -
ANSWERS-the industry's growth and profit prospects are strongly attractive to potential entry
candidates
The strongest of the competitive forces in the five-forces model of competition is usually -
ANSWERS-the competitive pressures associated with the market maneuvering and jockeying for
buyer patronage among rival sellers in the industry
The term strategic group refers to - ANSWERS-a cluster of industry rivals that employ similar
competitive approaches, have product offerings that appeal to similar types of buyers, and thus
occupy similar market positions
A company's strategy is defined by - ANSWERS-the specific market positioning, competitive
moves, and business approaches that form management's answer to "What's our plan for
running the company and producing good results?"
Solutions19
Factors that weaken the rivalry among competing sellers include - ANSWERS-High buyer costs to
switch brands company industry rivals that any one company's actions have little impact on
rivals' businesses, and rapid growth in buyer demand
Which one of the following conditions acts to intensify the competitive pressures associated
with the threat of entry? - ANSWERS-A general belief on the part of entry candidates that
industry members are unwilling or unable to strongly contest the efforts of newcomers to gain a
market foothold
A competitive environment where there is strong rivalry among sellers, low entry barriers,
strong competition from substitute products, and considerable bargaining leverage on the part
of both suppliers and customers - ANSWERS-Makes it hard for industry members to earn
attractive profits
Which one of the following is not a factor that affects the strength of supplier bargaining
power? - ANSWERS-Whether there are greater or fewer than ten suppliers of the item being
purchased from suppliers
Potential entrants are more likely to be deterred from actually entering an industry when -
ANSWERS-Industry incumbents are willing and able to launch strong defensive maneuvers to
maintain their positions and make it harder for a newcomer to compete successfully and
profitably
Which one of the following is not a useful question for company managers to pose in trying to
predict the likely actions of important rivals? - ANSWERS-Which competitors are in the best
strategic group in the industry?
,Which of the following is a major question to ask in assessing a company's industry and
competitive environment? - ANSWERS-What forces are driving changes in the industry, and
what impact will these changes have on competitive intensity and industry profitability?
The "driving forces" in an industry - ANSWERS-are the major underlying causes of changing
industry and competitive conditions and have the biggest influence on how the industry
landscape will be altered
Which of the following statements about the market maneuvering for buyer patronage that
goes on among rival sellers of a product or service is false? - ANSWERS-While there is constant
jockeying among industry members to improve their market position and profits, the current
market leaders have a 90% or better chance of continuing their leadership and ultimately
winning a sustainable competitive advantage over the other industry contenders.
The rivalry among competing sellers tends to become a stronger competitive force when -
ANSWERS-the products of rival sellers are essentially identical or else weakly differentiated.
Which of the following is generally not considered as a barrier to entry? - ANSWERS-Weak
brand preference and low degrees of customer loyalty to existing brands
Which one of the following statements about strategic groups and strategic group mapping is
false? - ANSWERS-The hardest aspect of strategic group mapping is always figuring out which of
several possible strategic group maps represents the single one best map for portraying how
competing firms are positioned.
Which of the following are important considerations in evaluating whether an industry's outlook
is conducive to good profitability? - ANSWERS-The industry's growth potential, the anticipated
strength of competitive forces, and whether the industry and the company are being favorably
or unfavorably impacted by macro-environmental factors
Which of the following are most unlikely to qualify as driving forces? - ANSWERS-Mounting
competition from substitutes, increasing efforts on the part of industry members to collaborate
, with suppliers, and the speed with which the number of industry key success factors is either
rising or falling
In which of the following circumstances are competitive pressures associated with the
bargaining power of buyers not relatively strong? - ANSWERS-When buyer demand is growing
rapidly and sellers' products are strongly differentiated
The competitive pressures from substitute products tend to be weaker when - ANSWERS-buyers
have high costs in switching to substitutes
based on Figure 3.4, which of the following is not a typical competitive weapon that a can use to
battle rivals and attract buyers? - ANSWERS-Constructing the biggest production plant of any
company in the industry
The best test of whether potential entry is a strong or weak competitive force is whether -
ANSWERS-the industry's growth and profit prospects are strongly attractive to potential entry
candidates
The strongest of the competitive forces in the five-forces model of competition is usually -
ANSWERS-the competitive pressures associated with the market maneuvering and jockeying for
buyer patronage among rival sellers in the industry
The term strategic group refers to - ANSWERS-a cluster of industry rivals that employ similar
competitive approaches, have product offerings that appeal to similar types of buyers, and thus
occupy similar market positions
A company's strategy is defined by - ANSWERS-the specific market positioning, competitive
moves, and business approaches that form management's answer to "What's our plan for
running the company and producing good results?"
