BSG EXAM 1 QUESTIONS &
ELABORATED ANSWERS PASSED
ALREADY GRADED A+
Factors that weaken the rivalry among competing sellers include - Correct Answer ✔✔
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? - Correct Answer ✔✔ 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 - Correct Answer ✔✔ 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? - Correct Answer ✔✔ 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
- Correct Answer ✔✔ 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? - Correct Answer ✔✔ 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? - Correct Answer ✔✔ 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 - Correct Answer ✔✔ 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? - Correct Answer ✔✔
, 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 - Correct Answer ✔✔ 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? - Correct
Answer ✔✔ 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? - Correct Answer ✔✔ 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? - Correct Answer ✔✔ 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? - Correct Answer
✔✔ 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? - Correct Answer ✔✔ When buyer
demand is growing rapidly and sellers' products are strongly differentiated
The competitive pressures from substitute products tend to be weaker when - Correct
Answer ✔✔ 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? - Correct Answer ✔✔ 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
- Correct Answer ✔✔ the industry's growth and profit prospects are strongly attractive to
potential entry candidates
ELABORATED ANSWERS PASSED
ALREADY GRADED A+
Factors that weaken the rivalry among competing sellers include - Correct Answer ✔✔
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? - Correct Answer ✔✔ 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 - Correct Answer ✔✔ 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? - Correct Answer ✔✔ 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
- Correct Answer ✔✔ 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? - Correct Answer ✔✔ 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? - Correct Answer ✔✔ 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 - Correct Answer ✔✔ 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? - Correct Answer ✔✔
, 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 - Correct Answer ✔✔ 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? - Correct
Answer ✔✔ 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? - Correct Answer ✔✔ 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? - Correct Answer ✔✔ 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? - Correct Answer
✔✔ 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? - Correct Answer ✔✔ When buyer
demand is growing rapidly and sellers' products are strongly differentiated
The competitive pressures from substitute products tend to be weaker when - Correct
Answer ✔✔ 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? - Correct Answer ✔✔ 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
- Correct Answer ✔✔ the industry's growth and profit prospects are strongly attractive to
potential entry candidates
