BSG EXAM 1 2025 QUESTIONS AND
ANSWERS
Factors that weaken the rivalry among competing sellers include - ANS 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? - ANS 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 - ANS Makes it hard for industry members to earn attractive
profits
1 @COPYRIGHT THESTAR 2025/2026
,Which one of the following is not a factor that affects the strength of supplier bargaining
power? - ANS 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 -
ANS 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? - ANS 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? - ANS What forces are driving changes in the industry, and what
impact will these changes have on competitive intensity and industry profitability?
2 @COPYRIGHT THESTAR 2025/2026
,The "driving forces" in an industry - ANS 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? - ANS 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 -
ANS 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? - ANS 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? - ANS The hardest aspect of strategic group mapping is always figuring out which of
3 @COPYRIGHT THESTAR 2025/2026
, 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? - ANS 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? - ANS 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? - ANS When buyer demand is growing
rapidly and sellers' products are strongly differentiated
The competitive pressures from substitute products tend to be weaker when - ANS buyers
have high costs in switching to substitutes
4 @COPYRIGHT THESTAR 2025/2026
ANSWERS
Factors that weaken the rivalry among competing sellers include - ANS 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? - ANS 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 - ANS Makes it hard for industry members to earn attractive
profits
1 @COPYRIGHT THESTAR 2025/2026
,Which one of the following is not a factor that affects the strength of supplier bargaining
power? - ANS 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 -
ANS 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? - ANS 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? - ANS What forces are driving changes in the industry, and what
impact will these changes have on competitive intensity and industry profitability?
2 @COPYRIGHT THESTAR 2025/2026
,The "driving forces" in an industry - ANS 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? - ANS 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 -
ANS 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? - ANS 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? - ANS The hardest aspect of strategic group mapping is always figuring out which of
3 @COPYRIGHT THESTAR 2025/2026
, 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? - ANS 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? - ANS 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? - ANS When buyer demand is growing
rapidly and sellers' products are strongly differentiated
The competitive pressures from substitute products tend to be weaker when - ANS buyers
have high costs in switching to substitutes
4 @COPYRIGHT THESTAR 2025/2026
