JPS 499 Midterm|Latest
2025/2026 Exam Update|
Questions With Complete
Solutions|Graded A+|Reliable
A+ Certified Pass
what is The External Environment made up from (inside to out) - ANSWERS-the
firm, strategic groups, industry environment, general environment.
what is the External environment - ANSWERS-All the influences outside of a firm
that can affect a firm's decisions and performance
How to classify external influences? - ANSWERS-By stakeholders and By proximity
How to classify external influences By stakeholders? - ANSWERS-Customer,
supplier, community, government
How to classify external influences By proximity? - ANSWERS-General
environment industry environment strategic groups individual competitors
,what are Two unassailable assumptions in industry analysis? - ANSWERS-- No two
firms are totally different
- No two firms are exactly the same
what are Strategic groups? - ANSWERS-- Cluster of firms that share similar
strategies
What is the Value of strategic groups as an analytical tool? - ANSWERS-- Identify
barriers to mobility that protect a group from attacks by other groups
- Identify groups whose competitive position may be marginal or tenuous
- Chart the future direction of firms' strategies
- Thinking through the implications of each industry trend for the strategic group
as a whole
Definition of Industry - ANSWERS-A set of firms that produce similar products or
services, sell to similar customers, and use similar methods of production.
Purpose of knowing industry environment For companies outside the industry -
ANSWERS-• Is the industry attractive to enter?
Purpose of knowing industry environment For companies within the industry -
ANSWERS-• Position the company where competitive forces are weakest.
• Change the industry structure to reduce the intensity of competitive forces.
,Firms make profits by...? - ANSWERS-Creating value for customers
Adapt strategy to industry conditions
- Outcompete competitors within the industry and outside of the industry
(substitutes and potential entrants)
- Lock in customers
The point of industry analysis is not to declare the industry attractive or
unattractive but to understand the underpinnings of competition and the root
causes of profitability - ANSWERS-The point of industry analysis is not to declare
the industry attractive or unattractive but to understand the underpinnings of
competition and the root causes of profitability
Five Forces of Industry Competition includes...? - ANSWERS-Potential Entrants
Buyers
Substitutes
Suppliers
Industry Competitors
Five Forces of Industry Competition Looks at...? - ANSWERS-Threat of new
entrants
Bargaining power of buyers
Threat of substitute products or services
Bargaining power of suppliers
, Rivalry among existing firms
Key question when conducting the Five Forces of Industry Competition? -
ANSWERS-How does each of these forces influence an industry's profitability?
What do the Five Forces of Industry Competition findings mean? - ANSWERS-
Strong competitive pressure from each force
---low industry profitability
(and vice versa)
Analysis is from the industry perspective, not from the perspective of a particular
firm
What does the Threat of New Entrants mean? - ANSWERS-The Profits of
established firms in the industry may be eroded by new competitors
What do High entry barriers lead to? - ANSWERS-a low threat of new entries
Examples of high entry barriers? - ANSWERS-Economies of scale. [cost advantage]
Product differentiation. [perception of uniqueness]
Switching costs. [customer loyalty program]
Capital requirements
Incumbent's control of (1) knowledge, (2) raw materials, (3) distribution channels
2025/2026 Exam Update|
Questions With Complete
Solutions|Graded A+|Reliable
A+ Certified Pass
what is The External Environment made up from (inside to out) - ANSWERS-the
firm, strategic groups, industry environment, general environment.
what is the External environment - ANSWERS-All the influences outside of a firm
that can affect a firm's decisions and performance
How to classify external influences? - ANSWERS-By stakeholders and By proximity
How to classify external influences By stakeholders? - ANSWERS-Customer,
supplier, community, government
How to classify external influences By proximity? - ANSWERS-General
environment industry environment strategic groups individual competitors
,what are Two unassailable assumptions in industry analysis? - ANSWERS-- No two
firms are totally different
- No two firms are exactly the same
what are Strategic groups? - ANSWERS-- Cluster of firms that share similar
strategies
What is the Value of strategic groups as an analytical tool? - ANSWERS-- Identify
barriers to mobility that protect a group from attacks by other groups
- Identify groups whose competitive position may be marginal or tenuous
- Chart the future direction of firms' strategies
- Thinking through the implications of each industry trend for the strategic group
as a whole
Definition of Industry - ANSWERS-A set of firms that produce similar products or
services, sell to similar customers, and use similar methods of production.
Purpose of knowing industry environment For companies outside the industry -
ANSWERS-• Is the industry attractive to enter?
Purpose of knowing industry environment For companies within the industry -
ANSWERS-• Position the company where competitive forces are weakest.
• Change the industry structure to reduce the intensity of competitive forces.
,Firms make profits by...? - ANSWERS-Creating value for customers
Adapt strategy to industry conditions
- Outcompete competitors within the industry and outside of the industry
(substitutes and potential entrants)
- Lock in customers
The point of industry analysis is not to declare the industry attractive or
unattractive but to understand the underpinnings of competition and the root
causes of profitability - ANSWERS-The point of industry analysis is not to declare
the industry attractive or unattractive but to understand the underpinnings of
competition and the root causes of profitability
Five Forces of Industry Competition includes...? - ANSWERS-Potential Entrants
Buyers
Substitutes
Suppliers
Industry Competitors
Five Forces of Industry Competition Looks at...? - ANSWERS-Threat of new
entrants
Bargaining power of buyers
Threat of substitute products or services
Bargaining power of suppliers
, Rivalry among existing firms
Key question when conducting the Five Forces of Industry Competition? -
ANSWERS-How does each of these forces influence an industry's profitability?
What do the Five Forces of Industry Competition findings mean? - ANSWERS-
Strong competitive pressure from each force
---low industry profitability
(and vice versa)
Analysis is from the industry perspective, not from the perspective of a particular
firm
What does the Threat of New Entrants mean? - ANSWERS-The Profits of
established firms in the industry may be eroded by new competitors
What do High entry barriers lead to? - ANSWERS-a low threat of new entries
Examples of high entry barriers? - ANSWERS-Economies of scale. [cost advantage]
Product differentiation. [perception of uniqueness]
Switching costs. [customer loyalty program]
Capital requirements
Incumbent's control of (1) knowledge, (2) raw materials, (3) distribution channels
