39) Brain Sentry is starting a firm in the small industry that helps football teams discern whether
a player has suffered a concussion. This industry is still so new that no standard operating
procedures have been developed. The industry Brain Sentry is entering is an example of a(n)
________ industry.
A) mature
B) declining
C) emerging
D) global
40) The primary opportunity existing for startups in emerging industries is to ________.
A) consolidate the industry and establish industry leadership as a result of doing so
B) win customers by placing an emphasis on service and process innovation
C) pursue a niche strategy, which focuses on a narrow segment of the industry that might be
encouraged to grow through product or process innovation
D) capture a first-mover advantage
E) pursue a cost reduction strategy, which is accomplished through achieving lower costs than
industry incumbents through process innovation
41) A(n) ________ industry is one that is characterized by a large number of firms of
approximately equal size.
A) fragmented
B) mature
C) declining
D) emerging
E) global
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42) The primary opportunity existing for startups in fragmented industries is to ________.
A) pursue a niche strategy, which focuses on a narrow segment of the industry that might be
encouraged to grow through product or process innovation
B) win customers by placing an emphasis on service and process innovation
C) capture a first-mover advantage
D) pursue a cost reduction strategy, which is accomplished through achieving lower costs than
industry incumbents through process innovation
43) A(n) ________ industry is an industry that is experiencing slow or no increase in demand.
A) declining
B) global
C) mature
D) emerging
E) fragmented
44) According to the textbook, Justin’s in peanut butter, Rover.com in dog care, and Zagster in
bike sharing are examples of entrepreneurial firms who are exploiting opportunities in ________
industries.
A) emerging
B) fragmented
C) declining
D) mature
E) consolidated
45) According to the textbook, Chipotle Mexican Grill in fast-casual restaurants and 1-800-
GOT_JUNK? in junk removal are examples of entrepreneurial firms who are exploiting
opportunities in ________ industries.
A) global
B) declining
C) mature
D) emerging
E) fragmented
46) According to the textbook, Nucor in steel, JetBlue in airlines, and Cirque du Soleil in
circuses are examples of entrepreneurial firms who are exploiting opportunities in ________
industries.
A) fragmented
B) emerging
C) declining
D) global
E) mature
47) Opportunities for leadership, niche, harvest and divestment are associated with ________
industries.
A) mature
B) emerging
C) declining
D) fragmented
E) global
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48) A(n) ________ industry is an industry that is experiencing significant international sales.
A) global
B) mature
C) fragmented
D) declining
E) emerging
49) The two most common strategies pursued by firms in global industries are the ________
strategy and the ________ strategy.
A) inclusive; multidomestic
B) multidomestic; global
C) multidomestic; worldwide
D) inclusive; global
E) home; worldwide
50) Firms that pursue a(n) ________ strategy compete for market share on a country-by-country
basis and vary their product or service offerings to meet the demands of the local market.
A) inclusive
B) universal
C) multidomestic
D) contemporary
E) worldwide
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51) Kellen West recently launched a firm in the fruit drink industry, and has already exported his
fruit drinks to 11 different countries. One thing that Kellen’s firm is doing is that it is varying the
tastes of the fruit drinks it sells on a country-by-country basis to meet the demands of the local
markets. Kellen’s firm is pursuing a ________ strategy.
A) global
B) home
C) universal
D) contemporary
E) multidomestic
52) Katherine Chapman recently launched a firm in the clothing industry, targeting 13-17 year
olds. One thing Katherine thinks she has accomplished is producing products that have universal
appeal, so she will not vary her approach from country to country. Katherine is pursuing a
________ strategy.
A) universal
B) multidomestic
C) contemporary
D) global
53) A fragmented industry is a new industry in which standard operating procedures have yet to
be developed.
54) An emerging industry is one that is characterized by a large number of firms of
approximately equal size.
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55) The primary opportunity available to firms in fragmented industries is consolidation. The
most common way to do this is through a geographic roll-up strategy, in which one firm starts
acquiring similar firms that are located in different geographic areas.
56) A fragmented industry is an industry that is experiencing slow increases in demand,
numerous repeat customers, and limited product innovation.
57) Firms that pursue a multidomestic strategy use the same basic approach in all foreign
58) What is an emerging industry? What is the primary opportunity available to entrepreneurial
59) According to the textbook, the first step in a competitor analysis is to ________.
A) develop a marketing plan
B) develop the strategic plan
C) study the strength of the industry
D) study the external environment
E) determine who the competition is
60) According to the textbook, the three different types of competitors a business will face are
________.
A) potential, direct, and upcoming
B) indirect, fleeting, and future
C) serious, cautious, and future
D) direct, indirect, and future
E) potential, fleeting, and indirect
61) In the context of competitor analysis, businesses that offer identical or similar products are
referred to as ________ competitors.
A) immediate
B) direct
C) indirect
D) straight
E) urgent
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62) Aquafina operates in the bottled water industry. The companies that offer identical or similar
products and go after the same customers that Aquafina does are Dasani and Zephyrhills. Dasani
and Zephyrhills are Aquafina’s ________ competitors.
A) direct
B) indirect
C) future
D) impending
E) potential
63) In the context of competitor analysis, ________ competitors offer close substitutes to the
product sold by the firm completing the analysis.
A) potential
B) direct
C) indirect
D) impending
E) future
64) In the beverage industry, soda, fruit juice, and sports drinks are ________ competitors of
bottled water.
A) occasional
B) infrequent
C) indirect
D) direct
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65) In the context of competitor analysis, ________ competitors are companies that are not yet
direct or indirect competitors but could move into one of these roles at any time.
A) stable
B) roundabout
C) impending
D) approximate
E) future
66) The information that is gathered by a firm to learn about its competitors is referred to as
________.
A) a feasibility appraisal
B) a workable appraisal
C) a practical assessment
D) a viable assessment
E) competitive intelligence
67) The Savvy Entrepreneurial Firm feature in Chapter 5 focuses on three firms that are doing
well in crowded industries as ________.
A) they have effectively differentiated themselves from their competitors and have captured a
first-mover advantage
B) they have passionate leaders and run savvy promotional campaigns
C) they have captured a first-mover advantage and have unique business models
D) they create meaningful value for customers at a fair price and have differentiated themselves
from their competitors
68) Amy has just launched a firm in the sports drink industry. She has decided to complete a grid
to see how she stacks up against her competitors. Along the horizontal axis of the grid she lists
her firm along with her major competitors. Along the vertical axis of the grid she lists the main
competitive factors in her industry. Amy is completing a ________.
A) strategic analysis spreadsheet
B) tactical analysis framework
C) competitive analysis grid
D) strategic analysis grid
E) behavioral analysis spreadsheet
69) One of the firms profiled in the Savvy Entrepreneurial Firm feature is The Muse. The Muse
is in the ________ industry.
A) education
B) literary writing
C) competitive recruitment and placement
D) music
E) book publishing
70) The first step in a competitor analysis is to determine who the competition is.
71) A firm’s future competitors are its most important ones.
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72) The three types of competitors a business will face are direct competitors, indirect
73) The information that is gathered by a firm to learn about its competitors is referred to as
tactical intelligence.
74) A competitive analysis grid is a tool for organizing the information a firm collects about its
75) What is competitive intelligence? What are some of the ways that a firm can ethically obtain
information about its competitors?