Question 1

​The luxury market is characterized by:

Accepted Answer

A)   ​Fewer competitors than in a mass market.
B)   ​Less use of incentives and price cuts to induce purchases.
C)   ​Healthier profit margins than in a mass-market segment.
D)   ​All of the above.E) A) and B)
F) C) and D)

Question 2

​Competitors that typically compete most vigorously with each other:

Accepted Answer

A)   ​Are of different sizes and with similar market influence.
B)   ​Have highly differentiated product offerings.
C)   ​Offer big-ticket items to their market.
D)   ​Are of similar size and offer similar products.E) A) and B)
F) All of the above

Question 3

​Which of the following is true about firms that pursue both strategies of cost leadership and differentiation?

Accepted Answer

A)   ​They become "stuck in the middle" with resulting poor performance.
B)   ​They cannot be successful in both strategies.
C)   ​Flexible manufacturing enables a firm to produce differentiated products at low costs in many cases.
D)   ​Mass customization is the inevitable result of combining strategies.E) C) and D)
F) B) and C)

Question 4

​An off-the-rack wedding dress would not be considered a highly differentiated product.

Accepted Answer

A) True 
 B)False

Question 5

Related and supporting industries are called _________ and they are an additional force that can impact the competitiveness of an industry.

Accepted Answer

A)   Complementors
B)   Supporters
C)   Customizers
D)   Flexible manufacturingE) None of the above
F) A) and B)

Question 6

​In the 1990s,Porter added a sixth force to his five forces framework.Describe that sixth force and give an example of its use in determining a firm's strategy.

Accepted Answer

​Answers need to state related and suppo...

Question 7

​Once a firm becomes a cost leader,it no longer has to search as diligently for lower costs.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would tend to reduce the bargaining power of suppliers?

Accepted Answer

A)   Dominance of the supplier industry by a few firms.
B)   Suppliers provide unique,differentiated products with few or no substitutes.
C)   Focal firm is not an important customer.
D)   Unwillingness and inability of suppliers to integrate forward.E) B) and C)
F) A) and C)

Question 9

​For a savvy strategist,the five forces framework provides for a strong beginning,middle,and end of strategic analysis.

Accepted Answer

A) True 
 B)False

Question 10

​The three generic strategies include cost leadership,differentiation,and profitability.

Accepted Answer

A) True 
 B)False

Question 11

​One of the drawbacks of the differentiation strategy is that:

Accepted Answer

A)   ​Customers are unwilling to pay a premium price for differentiation.
B)   ​It is difficult to sustain the basis of differentiation in the long run.
C)   ​The firm is forced to continuously search for lower costs.
D)   ​The bargaining power of suppliers presents a significant problem to differentiators.E) B) and C)
F) A) and B)

Question 12

Which is a reason for choosing integration as opposed to outsourcing?

Accepted Answer

A)   Decreased expense.
B)   Strategic flexibility is enhanced.
C)   Those within the firm are often more competitive.
D)   The activity is not crucial to the core business.E) A) and B)
F) B) and C)

Question 13

​Which of the following is NOT one of the forces in Porter's five forces framework?

Accepted Answer

A)   ​The intensity of collaboration among rivals.
B)   ​The threat of potential entry.
C)   ​The bargaining power of buyers.
D)   ​The threat of substitutes.E) A) and B)
F) A) and C)

Question 14

​The text discusses how the five forces framework continues to influence strategic practice and research.According to the text,what are the lessons offered by the five forces framework?

Accepted Answer

​Answers should mention the three points...

Question 15

​The relative bargaining power of the focal firm and (according to the traditional view) the degree of integration helps answer which of the following questions?

Accepted Answer

A)   ​Why do firms differ?
B)   ​How do firms behave?
C)   ​What determines the scope of the firm?
D)   ​What determines the international success and failure of firms?E) None of the above
F) C) and D)

Question 16

Which of the following are scale-based low cost advantages?

Accepted Answer

A)   Experience curves.
B)   Proprietary technology.
C)   Favorable access to raw materials and distribution channels.
D)   Favorable locations.E) B) and C)
F) A) and C)

Question 17

An industry-based view provides some answers to which of the following questions?

Accepted Answer

A)   Why do firms differ?
B)   How do firms behave?
C)   What determines the scope of the firm?
D)   All of the above.E) None of the above
F) A) and C)

Question 18

​Which of the following firms exhibits a differentiation strategy?

Accepted Answer

A)   ​Company A constantly searches for lower costs in providing its products.
B)   ​Company B takes a high-volume low-margin approach in targeting customers for its products.
C)   ​Company C targets customers who are willing to pay a premium price.
D)   ​Company D targets the average customer.E) A) and D)
F) A) and B)

Question 19

Which of the following is true of the industrial organization (IO) economics model?

Accepted Answer

A)   Industry structure determines firm performance,which determines strategy and conduct.
B)   Original goal - help regulators set policy to minimize the ability of firms to earn excess profits.
C)   Strategists avoid the IO model to try to earn above-average returns (excess profits) .
D)   All of the above are true.E) None of the above
F) A) and C)

Question 20

​If there are many sellers but only a few buyers,the sellers tend to have the most bargaining power.

Accepted Answer

A) True 
 B)False

Exam 2: Managing Industry Competition

Related and supporting industries are called _________ and they are an additional force that can impact the competitiveness of an industry.

Correct AnswerverifiedShow Answer

​Which of the following is NOT one of the forces in Porter's five forces framework?

Correct AnswerverifiedShow Answer

​For a savvy strategist,the five forces framework provides for a strong beginning,middle,and end of strategic analysis.

Correct AnswerverifiedShow Answer

​Once a firm becomes a cost leader,it no longer has to search as diligently for lower costs.

Correct AnswerverifiedShow Answer

Which is a reason for choosing integration as opposed to outsourcing?

Correct AnswerverifiedShow Answer

​Which of the following firms exhibits a differentiation strategy?

Correct AnswerverifiedShow Answer

​In the 1990s,Porter added a sixth force to his five forces framework.Describe that sixth force and give an example of its use in determining a firm's strategy.

Correct Answerverified​Answers need to state related and suppo...View AnswerShow Answer

​The luxury market is characterized by:

Correct AnswerverifiedShow Answer

Which of the following is true of the industrial organization (IO) economics model?

Correct AnswerverifiedShow Answer

​If there are many sellers but only a few buyers,the sellers tend to have the most bargaining power.

Correct AnswerverifiedShow Answer

​Competitors that typically compete most vigorously with each other:

Correct AnswerverifiedShow Answer

​An off-the-rack wedding dress would not be considered a highly differentiated product.

Correct AnswerverifiedShow Answer

Which of the following would tend to reduce the bargaining power of suppliers?

Correct AnswerverifiedShow Answer

Which of the following are scale-based low cost advantages?

Correct AnswerverifiedShow Answer

An industry-based view provides some answers to which of the following questions?

Correct AnswerverifiedShow Answer

​The text discusses how the five forces framework continues to influence strategic practice and research.According to the text,what are the lessons offered by the five forces framework?

Correct Answerverified​Answers should mention the three points...View AnswerShow Answer

​Which of the following is true about firms that pursue both strategies of cost leadership and differentiation?

Correct AnswerverifiedShow Answer

​One of the drawbacks of the differentiation strategy is that:

Correct AnswerverifiedShow Answer

​The three generic strategies include cost leadership,differentiation,and profitability.

Correct AnswerverifiedShow Answer

​The relative bargaining power of the focal firm and (according to the traditional view) the degree of integration helps answer which of the following questions?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Which of the following is NOT one of the forces in Porter's five forces framework?

Correct Answer
verified

For a savvy strategist,the five forces framework provides for a strong beginning,middle,and end of strategic analysis.

Correct Answer
verified

Once a firm becomes a cost leader,it no longer has to search as diligently for lower costs.

Correct Answer
verified

Correct Answer
verified

Which of the following firms exhibits a differentiation strategy?

Correct Answer
verified

In the 1990s,Porter added a sixth force to his five forces framework.Describe that sixth force and give an example of its use in determining a firm's strategy.

Correct Answer
verified
Answers need to state related and suppo...
View Answer

The luxury market is characterized by:

Correct Answer
verified

Correct Answer
verified

If there are many sellers but only a few buyers,the sellers tend to have the most bargaining power.

Correct Answer
verified

Competitors that typically compete most vigorously with each other:

Correct Answer
verified

An off-the-rack wedding dress would not be considered a highly differentiated product.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The text discusses how the five forces framework continues to influence strategic practice and research.According to the text,what are the lessons offered by the five forces framework?

Correct Answer
verified
Answers should mention the three points...
View Answer

Which of the following is true about firms that pursue both strategies of cost leadership and differentiation?

Correct Answer
verified

One of the drawbacks of the differentiation strategy is that:

Correct Answer
verified

The three generic strategies include cost leadership,differentiation,and profitability.

Correct Answer
verified

The relative bargaining power of the focal firm and (according to the traditional view) the degree of integration helps answer which of the following questions?

Correct Answer
verified