EEE 457 MIDTERM WALSLEBEN
EXAM QUESTIONS AND
ANSWERS
Bargaining Power of Suppliers - Answer-pressure suppliers can exert on business by
raising prices, lowering quality or reducing availability of their product
high if:
supply is dominated by a few
few substitutes
supply is critical component to business product
bargaining power of buyers - Answer-refers to the pressure exerted by buyers expecting
a better price, quality, service
high if:
few large volume buyer
standardized products
few switching costs
multiple options
price sensitive
barriers to entry - Answer-Supply-side economies of scale
Demand-side benefits of scale
Capital requirements
Switching costs for buyer
Access to distribution channels
Incumbency advantages independent of size
Government regulations
supply side economies of scale - Answer-find costs spread among higher sales volume
demand side benefits of scale - Answer-name recognition, reputation
capital requirements - Answer-unrecoverable costs to enter
switching costs - Answer-embedded hassels to move
distribution channels - Answer-unequal access
incumbency advantages - Answer-first mover benefits
government regulations - Answer-benefits and hassels
, North American Industry classification system - Answer-NAICS
understanding industry - Answer-carrying capacity
uncertainty
complexity
industry stage of evolution
carrying capacity - Answer-degree of growth the industry can sustain
uncertainty - Answer-level of stability and ambiguity of the industry
complexity - Answer-number and diversity of nuts and outputs to the industry
industry stage of evolution - Answer-Birth
Growth/Adaptation
Differentiation/Competition
Shakeout
Maturity and Decline
sustainable profitable growth - Answer-moving into adjacent spaces, expanding
boundaries in predictable, repeatable ways (NIKE)
Adjacent Spaces - Answer-Expand Along The Value Chain
Grow New Products/Services
Use New Distribution Channels
Enter New Geographies
Address New Customer Segments
Move into "White Space"
benefits gained from adjacent space - Answer-Learning Curve Effects
Reduced Complexity
Speed
Strategic Clarity
demographics - Answer-core characteristics
social characteristics
core characteristics - Answer-age
gender
ethnicity, race
social chatracteristics - Answer-income level
eduction
occupation
lifecycle
EXAM QUESTIONS AND
ANSWERS
Bargaining Power of Suppliers - Answer-pressure suppliers can exert on business by
raising prices, lowering quality or reducing availability of their product
high if:
supply is dominated by a few
few substitutes
supply is critical component to business product
bargaining power of buyers - Answer-refers to the pressure exerted by buyers expecting
a better price, quality, service
high if:
few large volume buyer
standardized products
few switching costs
multiple options
price sensitive
barriers to entry - Answer-Supply-side economies of scale
Demand-side benefits of scale
Capital requirements
Switching costs for buyer
Access to distribution channels
Incumbency advantages independent of size
Government regulations
supply side economies of scale - Answer-find costs spread among higher sales volume
demand side benefits of scale - Answer-name recognition, reputation
capital requirements - Answer-unrecoverable costs to enter
switching costs - Answer-embedded hassels to move
distribution channels - Answer-unequal access
incumbency advantages - Answer-first mover benefits
government regulations - Answer-benefits and hassels
, North American Industry classification system - Answer-NAICS
understanding industry - Answer-carrying capacity
uncertainty
complexity
industry stage of evolution
carrying capacity - Answer-degree of growth the industry can sustain
uncertainty - Answer-level of stability and ambiguity of the industry
complexity - Answer-number and diversity of nuts and outputs to the industry
industry stage of evolution - Answer-Birth
Growth/Adaptation
Differentiation/Competition
Shakeout
Maturity and Decline
sustainable profitable growth - Answer-moving into adjacent spaces, expanding
boundaries in predictable, repeatable ways (NIKE)
Adjacent Spaces - Answer-Expand Along The Value Chain
Grow New Products/Services
Use New Distribution Channels
Enter New Geographies
Address New Customer Segments
Move into "White Space"
benefits gained from adjacent space - Answer-Learning Curve Effects
Reduced Complexity
Speed
Strategic Clarity
demographics - Answer-core characteristics
social characteristics
core characteristics - Answer-age
gender
ethnicity, race
social chatracteristics - Answer-income level
eduction
occupation
lifecycle
