T/F:
1.Competitor analysis is focused on the factors and conditions influencing an industry’s profitability potential.
2. Early adopters of new technology often achieve higher market shares and higher returns than later adopters of the technology.
3 The five forces model expands the arena of competitive analysis beyond direct competitors to include buyers and suppliers who may also be a source of competition.
4 Suppliers are powerful when the industry is dominated by a few large companies, no satisfactory substitutes are available, the selling industry is relatively more concentrated than the purchasing industry, and switching costs are high.
5 The competitor analysis is the final part of the external environment analysis and focuses on each company against which a firm directly competes (for example, Coca-Cola and PepsiCo, Home Depot and Lowe’s, and Airbus and Boeing).
6 Any competitor intelligence practice that is legal is also ethical.
MCQ:
7. It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and
a. the rapid development of the Internet’s capabilities.
b. extensive use of outsourcing within the borders of the United States.
c. the declining number of inventions and patents developed by U.S. citizens.
d. the simultaneous erosion of the U.S. work ethic and the U.S. education system.
8. Internal analysis enables a firm to do what the firm
a. can do
b. should do
c. will do
d. might do
9. The proper matching of what a firm can dowith what it might do
a. balances the internal characteristics of the firm with the characteristics of the external environment.
b. overcomes the rigidity and inertia resulting from a history of success.
c. yields insights the firm requires to select its strategy.
d. develops core competencies based on human knowledge.
10. Value consists of
a. product’s proprietary characteristics/ attributes for which customers are willing to pay.
b. product’s performance characteristics/attributes for which customers are willing to pay.
c. product’s proprietary characteristics/attributes for which customers consider paying.
d. product’s performance characteristics/attributes for which customers consider paying.
