100) An industry’s key success factors can always be deduced by asking what factors
A) are a function of market share, entry barriers, and economies of scale, degree of vertical
integration, and industry profitability that are advantageous.
B) vary according to whether an industry has high or low long-term attractiveness.
C) such as product attributes and service characteristics are crucial, and what resources and
competitive capabilities are needed, and what shortcomings are evident to put a company at a
competitive disadvantage.
D) can be determined from studying the winning strategies of the industry leaders and ruling out
as potential key success factors the strategy elements of those firms considered to have losing
strategies.
E) depend on the relative competitive strengths of the industry leaders and how vulnerable they
are to competitive attack.
101) In identifying an industry’s key success factors, strategists should
A) try to single out all factors that play a major role in shaping whether buyer demand grows
rapidly or slowly.
B) consider on what basis customers choose between competing brands, what resources and
competitive capabilities firms need to be competitively successful, and what shortcomings are
almost certain to put a company at a significant competitive disadvantage.
C) consider whether the number of strategic groups is increasing or decreasing and whether the
five competitive forces are powerful or relatively weak.
D) consider what it will take to overtake the company with the industry’s overall best strategy.
E) focus their attention on what it will take to capitalize on the impacts of the industry’s driving
forces.
102) Which of the following is not a question asked to deduce a marketing-related key success
factor?
A) What are the industry product R&D capabilities and expertise in product design?
B) On what basis do buyers choose between the competing brands of sellers?
C) What product attributes and service characteristics are crucial?
D) What resources must a company have to be competitive?
E) What shortcomings are almost certain to put a company at a significant disadvantage?
103) Which of the following can aid company strategists in identifying key success factors in
their industry?
A) global distribution capabilities of suppliers
B) product attributes and service characteristics that buyers consider to be crucial
C) low switching costs of buyers and suppliers
D) accurate filling of buyer orders
E) short delivery time capability
104) Correctly diagnosing an industry’s key success factors
A) points to those things that every firm in the industry needs to attend to in order to develop
product propositions.
B) hints at the firm’s ability to generate above-average profitability.
C) reveals that the firm’s capabilities and resources are aligned with operating practices of
industry participants.
D) raises a company’s chances of crafting a sound strategy.
E) raises a company’s sustainability dimensions and market characteristics in line with industry
dynamics.
105) Which of the following is particularly pertinent in evaluating whether an industry presents a
sufficiently attractive business opportunity?
A) the industry’s growth potential, whether competition appears destined to become stronger or
weaker, and whether the industry’s overall profit prospects are above average, average, or below
average
B) an assessment of which firms in the industry have the best and worst competitive strategies,
whether the number of strategic groups in the industry is increasing or decreasing, and whether
economies of scale and experience curve effects are a key success factor
C) whether there are more than five key success factors and more than five barriers to entry
D) constructing a strategic group map and assessing the attractiveness of the competitive position
of each strategic group
E) whether the market leaders enjoy competitive advantages and how hard it is to develop a
strongly differentiated product
106) In evaluating whether the industry and competitive environment presents sufficiently
attractive prospects for both competitive success and attractive profits usually does not involve a
consideration of which of the following factors?
A) the industry’s growth potential and whether competitive pressures will likely grow stronger or
weaker, and whether strong competitive forces are squeezing industry profitability to subpar
levels
B) whether the company occupies a stronger market position than rivals
C) whether the industry’s future profitability will be favorably or unfavorably affected by the
prevailing driving forces
D) the severity of the macro-environment problems confronting the industry
E) whether the industry’s product is strongly or weakly differentiated
107) When evaluating whether an industry’s environment presents a company with an above-
average profitability and an attractive business opportunity, it primarily involves
A) determining the industry’s outlook for future profitability.
B) determining which firms in the industry have a competitive advantage and how they got their
advantage.
C) determining the overall strength of the five competitive forces.
D) constructing a strategic group map and assessing the attractiveness of the competitive position
of each strategic group to determine the overall attractiveness of all the strategic groups.
E) using value chain analysis to determine the relative cost positions of rival firms and to learn
who the industry’s low-cost producer is.
108) Which of the following factors should a company consider when determining if an industry
offers good prospects for attractive profits?
A) the industry’s growth potential, whether competition appears destined to become stronger or
weaker, how the industry’s driving forces might affect overall industry profitability, the
company’s competitive position relative to rivals, and the company’s proficiency in performing
industry key success factors
B) an assessment of which firms in the industry have the best and worst competitive strategies,
whether the number of strategic groups in the industry is increasing or decreasing, and whether
economies of scale and experience curve effects are a key success factor
C) whether there are more than five key success factors, more than five barriers to entry, and
more than five industry drivers
D) whether the market leaders enjoy competitive advantages and how difficult it is to promote
innovation to develop a strongly differentiated product or service for which a price premium may
be charged
E) constructing a strategic group map and assessing the attractiveness of the competitive position
of each strategic group
109) What are the six key questions that form the framework of thinking strategically about a
company’s industry and competitive environment?
110) Draw the five forces model of competition and briefly describe the relevance of each of the
five forces in determining the overall strength of competitive pressures a company faces. Which
of the five competitive forces is typically the strongest?
111) What are the five competitive forces that comprise the five forces model of competition?
112) Competitive markets are economic battlefields. True or false? Explain.
113) Identify and briefly explain any four of the factors that influence the strength or intensity of
competitive rivalry among an industry’s member firms.
114) Identify five factors that tend to intensify competitive rivalry among an industry’s member
firms.
115) Identify five factors that tend to weaken the intensity of competitive rivalry among an
industry’s member firms.
116) Identify and briefly describe five common barriers to entering an industry.
117) Two friends of yours are considering opening a pizza parlor and delivery service within
walking distance of your campus. They have asked you to help them identify the competitive
pressures stemming from the threat that new firms will enter the pizza segment of the restaurant
industry. What information can you give them?
118) Based on your analysis of the ease of entry into the pizza segment of the restaurant industry,
your friends have decided to move forward with their plan to open a pizza parlor and delivery
service within walking distance of your campus. Before they finalize the product mix for their
restaurant, they have asked you to identify the competitive pressures stemming from the threat of
substitutes for the pizza segment of the restaurant industry. What would your report to them
include?
119) Based on your analysis of the ease of entry into and the threat of substitute products and
services in the pizza segment of the restaurant industry, your friends have now asked you to
estimate the threat of retaliation by incumbent rivals in the industry. Explain your assessment of
this threat.