Question 1

By finding ways to reduce the per-unit cost of its products, a firm enjoys non-scale-based advantages that provide greater profitability.

Accepted Answer

A) True 
 B)False

Question 2

In an industry-based view, not every firm within an industry competes against each other.

Accepted Answer

A) True 
 B)False

Question 3

One controversial issue with strategic groups is:

Accepted Answer

A)  Stability of strategic groups.
B)  Lack of mobility barriers between strategic groups.
C)   How easy it is to obtain large quantities of objective data.
D)   All of the above are controversial issues.E) B) and C)
F) A) and D)

Question 4

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) B) and D)

Question 5

An intense focus on above-average firm performance is shared by IO economists and those involved in the strategy of firms and yet their perspective is opposite of each other. Explain.

Accepted Answer

IO economists and policymakers are conce...

Question 6

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

Question 7

A complementor that sells products that add value to a focal industry's products:

Accepted Answer

A)  ​Does not affect the competitiveness of an industry.
B)  ​Is almost always high-tech in nature.
C)   ​Can act as a sixth force in the five forces framework.
D)   ​None of the above.E) B) and C)
F) B) and D)

Question 8

Cost leaders are significantly and negatively affected when strong suppliers decrease their prices.

Accepted Answer

A) True 
 B)False

Question 9

Substantial switching costs reduce the threat of potential entry.

Accepted Answer

A) True 
 B)False

Question 10

Describe the advantages and disadvantages of pursuing a cost leadership strategy?

Accepted Answer

​Advantages include offering the same va...

Question 11

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) All of the above
F) A) and B)

Question 12

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) C) and D)
F) A) and C)

Question 13

Strategies of firms within a strategic group tend to be differentand so does their performance.

Accepted Answer

A) True 
 B)False

Question 14

When demand is uncertain, integration increases strategic flexibility.

Accepted Answer

A) True 
 B)False

Question 15

A key indicator of intense rivalry among firms is low cost competitive actions and reactions.

Accepted Answer

A) True 
 B)False

Question 16

Which is generally NOT true of differentiation?

Accepted Answer

A)  Inability to pass on suppliers' price increases to buyers.
B)  Relentless efforts of competitors to duplicate differentiation.
C)   Key areas of application include research and development, marketing/sales and after-sale services.
D)   It is a challenge to identify attributes that are valued by customers in each market segment.E) B) and D)
F) A) and C)

Question 17

What are the fundamental questions that can be answered using an industry-based view, and what do the answers to those questions imply for taking strategic action?

Accepted Answer

​Answers should address the following: T...

Question 18

Activities that are crucial to a firm's core business:​

Accepted Answer

A)  ​Should be outsourced to increase a firm's strategic flexibility.
B)  ​Should be managed through a keiretsu structure.
C)   ​Should not be outsourced.
D)   ​Should always be outsourced.E) C) and D)
F) A) and C)

Question 19

The industry-based view ignores the impact of industry history and institutions on firm performance.

Accepted Answer

A) True 
 B)False

Question 20

A focused firm avoids being either a specialized differentiator or a specialized cost leader.

Accepted Answer

A) True 
 B)False

Exam 2: Managing Industry Competition

In an industry-based view, not every firm within an industry competes against each other.

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

Describe the advantages and disadvantages of pursuing a cost leadership strategy?

Correct Answerverified​Advantages include offering the same va...View AnswerShow Answer

The industry-based view ignores the impact of industry history and institutions on firm performance.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which is generally NOT true of differentiation?

Correct AnswerverifiedShow Answer

Substantial switching costs reduce the threat of potential entry.

Correct AnswerverifiedShow Answer

A key indicator of intense rivalry among firms is low cost competitive actions and reactions.

Correct AnswerverifiedShow Answer

A focused firm avoids being either a specialized differentiator or a specialized cost leader.

Correct AnswerverifiedShow Answer

One controversial issue with strategic groups is:

Correct AnswerverifiedShow Answer

What are the fundamental questions that can be answered using an industry-based view, and what do the answers to those questions imply for taking strategic action?

Correct Answerverified​Answers should address the following: T...View AnswerShow Answer

Cost leaders are significantly and negatively affected when strong suppliers decrease their prices.

Correct AnswerverifiedShow Answer

The luxury market is characterized by:

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When demand is uncertain, integration increases strategic flexibility.

Correct AnswerverifiedShow Answer

An intense focus on above-average firm performance is shared by IO economists and those involved in the strategy of firms and yet their perspective is opposite of each other. Explain.

Correct AnswerverifiedIO economists and policymakers are conce...View AnswerShow Answer

Strategies of firms within a strategic group tend to be differentand so does their performance.

Correct AnswerverifiedShow Answer

Activities that are crucial to a firm's core business:​

Correct AnswerverifiedShow Answer

By finding ways to reduce the per-unit cost of its products, a firm enjoys non-scale-based advantages that provide greater profitability.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A complementor that sells products that add value to a focal industry's products:

Correct AnswerverifiedShow Answer

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Advantages include offering the same va...
View Answer

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Answers should address the following: T...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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IO economists and policymakers are conce...
View Answer

Correct Answer
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Activities that are crucial to a firm's core business:

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Correct Answer
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Correct Answer
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Correct Answer
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