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BSG Exam 1 Questions and Answers
100% Pass
Factors that weaken the rivalry among competing sellers include - 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? - 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 - 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? -
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 - 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? - ANSWER ✔✔-Which competitors are in the best strategic group in the
industry?
Created by ©EmilyCharlene 2025. All rights reserved.
,2|Page
Which of the following is a major question to ask in assessing a company's industry and competitive
environment? - 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 - 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? - 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 - 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? - 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? -
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? - 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
Created by ©EmilyCharlene 2025. All rights reserved.
, 3|Page
Which of the following are most unlikely to qualify as driving forces? - 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? - ANSWER ✔✔-When buyer demand is growing rapidly and sellers'
products are strongly differentiated
The competitive pressures from substitute products tend to be weaker when - 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? - 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 - ANSWER ✔✔-
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 - ANSWER ✔✔-
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 - ANSWER ✔✔-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 - ANSWER ✔✔-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?"
Created by ©EmilyCharlene 2025. All rights reserved.
BSG Exam 1 Questions and Answers
100% Pass
Factors that weaken the rivalry among competing sellers include - 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? - 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 - 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? -
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 - 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? - ANSWER ✔✔-Which competitors are in the best strategic group in the
industry?
Created by ©EmilyCharlene 2025. All rights reserved.
,2|Page
Which of the following is a major question to ask in assessing a company's industry and competitive
environment? - 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 - 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? - 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 - 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? - 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? -
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? - 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
Created by ©EmilyCharlene 2025. All rights reserved.
, 3|Page
Which of the following are most unlikely to qualify as driving forces? - 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? - ANSWER ✔✔-When buyer demand is growing rapidly and sellers'
products are strongly differentiated
The competitive pressures from substitute products tend to be weaker when - 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? - 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 - ANSWER ✔✔-
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 - ANSWER ✔✔-
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 - ANSWER ✔✔-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 - ANSWER ✔✔-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?"
Created by ©EmilyCharlene 2025. All rights reserved.
