SEVI 3013 Practice Test Questions And Answers Graded A+
2025/2026
Threat of new entrants - how easy it is to enter the industry
-startup cost
-regulations
-how crowded is the market (number of firms)
Bargaining power of buyers - how much bargaining power and leverage do your buyers
have over you
-loyalty
-preferences
-# of buyers and how large are the order
Bargaining power of suppliers - supplier leverage/control
-think of frim whom do we get our raw materials, component parts, or labor
Threat of product substitutes - how easily can another product replace yours
the intensity of rivalry among competitors - affected by all other forces, as the other
forces get more intense then this will also become more intense
strategic group - a set of firms emphasizing similar strategic dimensions and using a
similar strategy
Intra Strategic vs Inter Strategic Competition - intra is more intense due to similar
market positions, products, and strategic actions
future objectives of strategic groups - How do our goals compare with our competitors
goals?
Where will the emphasis be placed in the future?
What is the attitude towards risk?
current strategy - How are we currently competing?
Does this strategy support changes in the competitive structure?
Assumptions - Do we assume the future will be volatile?
Are we operating under a status quo?
What assumptions do our competitors hold about the industry?
Capabilities Strategic Groups - What are our strengths and weaknesses?
How do we rate compared to our competitors?
Resources - cover a spectrum of individual, social, and organizational phenomena. By
themselves, they do not allow firms to create value for customers
, Capabilities - combines tangible and intangible resources to create capabilities. Used to
complete the organizational tasks required to produce, distribute, and service the goods
or services the firm provides to customers
Core Competencies - Are capabilities that serve as a source of competitive advantage
for a firm over its rivals. They distinguish a company competitively and reflect its
personality
- Emerge over time through the organizational process
VRIO Framework - An internal analysis tool, used by organizations to categorize their
resources based on whether they hold certain traits outlined in the framework. This
categorization then allows organizations to identify the company resources that are
competitive advantages
Entry Ticket - Competencies that a firm must have to survive in the industry. They must
have all entry tickets relevant to an industry
- Manufacturing excellence, fleet management, advanced R&D
Core Rigidities - Capabilities which are no longer valuable. They can lead to a
competitive disadvantage
Value Chain Analysis - allows the firm to understand the parts of is operation that create
value and those that do not
Reach - revolves around the firms access and connection to customers. Firms extend
their reach, adding customers in the process of doing so
Richness - concerns the depth and detail of the two-way flow of information between the
firm and customers
Affiliation - concerned with facilitating useful interactions with customers
Business Level Strategies - examine how firms compete in a given industry. Firms
derive such strategies by executives making decisions about whether their source of
competitive advantage is based on price or differentiation and whether their scope of
operations targets a broad or narrow market.
Cost Leadership - An integrated set of actions taken to produce products with features
that are acceptable to customers at the lowest cost, relative to that of competitors
- Low cost, high efficiency, standardized production, innovation focused on distribution
or supply chain
Differentiation - Integrated set of actions taken to produce produces that customers
perceive as being different in ways that are important to them
- Features uniqueness, focus on customer satisfaction, premium cost, innovation
focused on new product creation
2025/2026
Threat of new entrants - how easy it is to enter the industry
-startup cost
-regulations
-how crowded is the market (number of firms)
Bargaining power of buyers - how much bargaining power and leverage do your buyers
have over you
-loyalty
-preferences
-# of buyers and how large are the order
Bargaining power of suppliers - supplier leverage/control
-think of frim whom do we get our raw materials, component parts, or labor
Threat of product substitutes - how easily can another product replace yours
the intensity of rivalry among competitors - affected by all other forces, as the other
forces get more intense then this will also become more intense
strategic group - a set of firms emphasizing similar strategic dimensions and using a
similar strategy
Intra Strategic vs Inter Strategic Competition - intra is more intense due to similar
market positions, products, and strategic actions
future objectives of strategic groups - How do our goals compare with our competitors
goals?
Where will the emphasis be placed in the future?
What is the attitude towards risk?
current strategy - How are we currently competing?
Does this strategy support changes in the competitive structure?
Assumptions - Do we assume the future will be volatile?
Are we operating under a status quo?
What assumptions do our competitors hold about the industry?
Capabilities Strategic Groups - What are our strengths and weaknesses?
How do we rate compared to our competitors?
Resources - cover a spectrum of individual, social, and organizational phenomena. By
themselves, they do not allow firms to create value for customers
, Capabilities - combines tangible and intangible resources to create capabilities. Used to
complete the organizational tasks required to produce, distribute, and service the goods
or services the firm provides to customers
Core Competencies - Are capabilities that serve as a source of competitive advantage
for a firm over its rivals. They distinguish a company competitively and reflect its
personality
- Emerge over time through the organizational process
VRIO Framework - An internal analysis tool, used by organizations to categorize their
resources based on whether they hold certain traits outlined in the framework. This
categorization then allows organizations to identify the company resources that are
competitive advantages
Entry Ticket - Competencies that a firm must have to survive in the industry. They must
have all entry tickets relevant to an industry
- Manufacturing excellence, fleet management, advanced R&D
Core Rigidities - Capabilities which are no longer valuable. They can lead to a
competitive disadvantage
Value Chain Analysis - allows the firm to understand the parts of is operation that create
value and those that do not
Reach - revolves around the firms access and connection to customers. Firms extend
their reach, adding customers in the process of doing so
Richness - concerns the depth and detail of the two-way flow of information between the
firm and customers
Affiliation - concerned with facilitating useful interactions with customers
Business Level Strategies - examine how firms compete in a given industry. Firms
derive such strategies by executives making decisions about whether their source of
competitive advantage is based on price or differentiation and whether their scope of
operations targets a broad or narrow market.
Cost Leadership - An integrated set of actions taken to produce products with features
that are acceptable to customers at the lowest cost, relative to that of competitors
- Low cost, high efficiency, standardized production, innovation focused on distribution
or supply chain
Differentiation - Integrated set of actions taken to produce produces that customers
perceive as being different in ways that are important to them
- Features uniqueness, focus on customer satisfaction, premium cost, innovation
focused on new product creation
