MGMT 425 CH3 Exam Questions And Answers
Verified 100% Correct
Buyer bargaining power is stronger when - ANSWER the industry's products are
standardized or undifferentiated.
Collaborative relationships between particular sellers and buyers in an industry can
represent a source of strong competitive pressure when - ANSWER sales are made to
buyer groups with either strong bargaining power or high sensitivity.
Competitive pressures stemming from buyer bargaining power tend to be weaker when:
- ANSWER the costs incurred by buyers in switching to competing brands or to
substitute products are relatively high.
Which of the following conditions acts to weaken buyer bargaining power? - ANSWER
When buyers are unlikely to integrate backward into the business of sellers
Buyers are in position to exert strong bargaining power in dealing with sellers when: -
ANSWER Buyers are price-sensitive due to the product representing a significant
fraction of their purchases.
The following factors are relevant considerations in judging whether buyer bargaining
power is relatively strong or relatively weak - ANSWER -Whether certain customers
offer sellers important market exposure or prestige
-Whether customers are relatively well-informed about sellers' products, prices, and
costs
-Whether sellers' products are highly differentiated, making it troublesome or costly for
buyers to switch to competing brands or to substitute products
-Whether sellers pose little threat of forward integration into the product market of their
customers and whether buyers pose a major threat to integrate backward into the
product market of sellers
Not all buyers of an industry's product have equal degrees of bargaining power with
sellers, because: - ANSWER some sellers may be less sensitive than others to price,
quality, or service differences.
A competitive environment where there is weak to moderate rivalry among sellers, high
entry barriers, weak competition from substitute products, and little bargaining leverage
on the part of both suppliers and customers: - ANSWER is conducive to industry
, members earning attractive profits.
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: - ANSWER is competitively
unattractive from the standpoint of earning good profits.
As a rule, the collective impact of competitive pressures associated with the five
competitive forces: - ANSWER determines the extent of the competitive pressure on
industry profitability.
A company's strategy is increasingly effective the more it can match the company
strategy to competitive conditions, so the firm can: - ANSWER shift the competitive
battle in favor of the firm by altering the underlying factors driving the five forces.
The "driving forces" in an industry: - ANSWER are major underlying causes of
changing industry and competitive conditions and have the biggest influences in
reshaping the industry landscape and altering competitive conditions.
Industry conditions change: - ANSWER because important forces are enticing or
pressuring certain industry participants (competitors, customers, suppliers) to alter their
actions in important ways.
The task of driving forces analysis is to: - ANSWER identify the driving forces, assess
whether their impact will make the industry more or less attractive, and determine what
strategy changes are needed to prepare for the impacts of the driving forces.
Which of the following is NOT generally a "driving force" capable of producing
fundamental changes in industry and competitive conditions? - ANSWER Movement in
the economy and in interest rates
Which of the following are most UNLIKELY to qualify as driving forces? - ANSWER
Increasing efforts to collaborate with suppliers via strategic alliances and partnerships,
escalating risk levels and normalization of cost and efficiency in the industry
Which of the following do NOT qualify as potential driving forces capable of inducing
fundamental changes in industry and competitive conditions? - ANSWER Changes in
the economic power and bargaining leverage of customers and suppliers, growing
supplier-seller collaboration, and growing buyer-seller collaboration
Which of the following is MOST likely to qualify as a driving force? - ANSWER
Successful introduction of innovative new products or new ways to market products
Which one of the following is NOT a common type of driving force? - ANSWER
Verified 100% Correct
Buyer bargaining power is stronger when - ANSWER the industry's products are
standardized or undifferentiated.
Collaborative relationships between particular sellers and buyers in an industry can
represent a source of strong competitive pressure when - ANSWER sales are made to
buyer groups with either strong bargaining power or high sensitivity.
Competitive pressures stemming from buyer bargaining power tend to be weaker when:
- ANSWER the costs incurred by buyers in switching to competing brands or to
substitute products are relatively high.
Which of the following conditions acts to weaken buyer bargaining power? - ANSWER
When buyers are unlikely to integrate backward into the business of sellers
Buyers are in position to exert strong bargaining power in dealing with sellers when: -
ANSWER Buyers are price-sensitive due to the product representing a significant
fraction of their purchases.
The following factors are relevant considerations in judging whether buyer bargaining
power is relatively strong or relatively weak - ANSWER -Whether certain customers
offer sellers important market exposure or prestige
-Whether customers are relatively well-informed about sellers' products, prices, and
costs
-Whether sellers' products are highly differentiated, making it troublesome or costly for
buyers to switch to competing brands or to substitute products
-Whether sellers pose little threat of forward integration into the product market of their
customers and whether buyers pose a major threat to integrate backward into the
product market of sellers
Not all buyers of an industry's product have equal degrees of bargaining power with
sellers, because: - ANSWER some sellers may be less sensitive than others to price,
quality, or service differences.
A competitive environment where there is weak to moderate rivalry among sellers, high
entry barriers, weak competition from substitute products, and little bargaining leverage
on the part of both suppliers and customers: - ANSWER is conducive to industry
, members earning attractive profits.
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: - ANSWER is competitively
unattractive from the standpoint of earning good profits.
As a rule, the collective impact of competitive pressures associated with the five
competitive forces: - ANSWER determines the extent of the competitive pressure on
industry profitability.
A company's strategy is increasingly effective the more it can match the company
strategy to competitive conditions, so the firm can: - ANSWER shift the competitive
battle in favor of the firm by altering the underlying factors driving the five forces.
The "driving forces" in an industry: - ANSWER are major underlying causes of
changing industry and competitive conditions and have the biggest influences in
reshaping the industry landscape and altering competitive conditions.
Industry conditions change: - ANSWER because important forces are enticing or
pressuring certain industry participants (competitors, customers, suppliers) to alter their
actions in important ways.
The task of driving forces analysis is to: - ANSWER identify the driving forces, assess
whether their impact will make the industry more or less attractive, and determine what
strategy changes are needed to prepare for the impacts of the driving forces.
Which of the following is NOT generally a "driving force" capable of producing
fundamental changes in industry and competitive conditions? - ANSWER Movement in
the economy and in interest rates
Which of the following are most UNLIKELY to qualify as driving forces? - ANSWER
Increasing efforts to collaborate with suppliers via strategic alliances and partnerships,
escalating risk levels and normalization of cost and efficiency in the industry
Which of the following do NOT qualify as potential driving forces capable of inducing
fundamental changes in industry and competitive conditions? - ANSWER Changes in
the economic power and bargaining leverage of customers and suppliers, growing
supplier-seller collaboration, and growing buyer-seller collaboration
Which of the following is MOST likely to qualify as a driving force? - ANSWER
Successful introduction of innovative new products or new ways to market products
Which one of the following is NOT a common type of driving force? - ANSWER
