BSG Exam 1 Questions and Answers

BSG Exam 1 Questions and Answers Factors that weaken the rivalry among competing sellers include 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? 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 Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:15 Full screen Brainpower Read More 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 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? 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 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? 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? 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 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? 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 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? 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? 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? 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? 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? When buyer demand is growing rapidly and sellers' products are strongly differentiated The competitive pressures from substitute products tend to be weaker when 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? 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 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 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 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 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?" A company's strategy consists of the competitive moves and business approaches that managers employ to attract and please customers, compete successfully, pursue opportunities to grow the business, respond to changing market conditions, conduct operations, and achieve the targeted financial and market performance Managerial Commitment incorporates choices and decisions about: - how to attract and please customers - how to compete against rivals - and ideally, gain a competitive advantage as opposed to being hamstrung by competitive disadvantage - how to position the company in the marketplace vis-a-vis rivals - how to capitalize on opportunities to grow the business - how best to respond to changing economic and market conditions - how to manage each functional piece of the business (R&D, supply chain activities, production, sales and marketing, distribution, finance, and human resources) - how to achieve the company's performance 5 Frequently used strategic approaches to setting a company apart from rivals, delivering superior value, achieving competitive advantage and converting buyers into loyal customers are: 1. striving to be the industry's low-cost provider 2. Competing successfully and profitably against rivals based on differentiating features 3. Offering more value for the money 4. Focusing on a narrow market niche and winning a competitive edge 5. Developing competitively valuable resources and capabilities striving to be the industry's low-cost provider strategy aiming for a cost-based advantage over rivals that can then become the basis for charging lower prices and/or earning higher profits Strategy of Competing successfully and profitably against rivals based on differentiating features such as higher quality, wider product selection, added performance, value added services, more attractive styling, technological superiority, or some other attributes that set a company's product offering apart from those of rivals. Offering more value for the money strategy meeting or beating buyers' expectations regarding key quality/features/performance/service attributes while beating their price expectations (aka best-cost provider strategy) Focusing on a narrow market niche and winning a competitive edge Strategy by doing a better job than rivals of serving the special needs and tastes of buyers that compose the niche. Developing competitively valuable resources and capabilities Strategy such resources and capabilities that rivals can't easily imitate or trump with their own