Business-level Strategy And The Industry Environment

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Questions Bank

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage
External Analysis: The Identification of Opportunities and Threats
Internal Analysis: Distinctive Competencies,Competitive Advantage,and Profitability
Building Competitive Advantage Through Functional-Level Strategy
Building Competitive Advantage Through Business-Level Strategy
Business-Level Strategy and the Industry Environment
Strategy and Technology
Strategy in the Global Environment
Corporate-Level Strategy: Horizontal Integration,Vertical Integration,and Strategic Outsourcing
Corporate-Level Strategy: Related and Unrelated Diversification
Corporate Performance,Governance,and Business Ethics
Implementing Strategy in Companies That Compete in a Single Industry
Implementing Strategy in Companies That Compete Across Industries and Countries

All Questions

Question 1

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A fragmented industry is composed of a large number of small and medium-sized companies.

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Question 2

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Fragmented industries typically have high barriers to entry.

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Question 3

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McDonald's created the first national chain of fast-food restaurants in a previously fragmented industry.This is called consolidation.

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Question 4

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Broad cost leadership is the most appropriate generic strategy for a fragmented industry.

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Question 5

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Barnes & Noble owns thousands of retail outlets and is pursuing a strategy called franchising.

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Question 6

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Through chaining,companies increase their buying power,which allows them to negotiate large price reductions with their suppliers,which in turn promotes their competitive advantage.

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Question 7

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Because franchisees essentially own their own businesses,they are less motivated to make the companywide business model work and instead pursue strategies that they feel are appropriate for their unique circumstances.

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Question 8

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The challenge in a fragmented industry is to figure out the best set of strategies to overcome a fragmented market so that the competitive advantages associated with pursuing one of the different business models can be realized.

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Question 9

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One characteristic of embryonic industries is poorly developed distribution channels.

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Question 10

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Development of a mass market is the stimulus for an industry to change from growth to embryonic.

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Question 11

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Both innovators and early adopters enter the market while the industry is in its embryonic stage.

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Question 12

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The early adopters refers to the customers who purchase a new technology or product only when it is clear it will be around for a long time.

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Question 13

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Different strategies are often required to support and strengthen a company's business model as a market develops over time.

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Question 14

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The "late majority" are typically reached through specialized distribution channels,and products are often sold by word of mouth.

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Question 15

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Reaching the early majority requires successful niche marketing and narrow market segmentation.

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Question 16

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Companies in a weak competitive position in the growth stage of the industry life cycle can use a market concentration strategy to find a viable competitive position.

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Question 17

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The shakeout strategy of share-increasing is put in place by allocating resources to attract customers from weak companies exiting the market.

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Question 18

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As a result of fierce competition in the shakeout stage,an industry becomes fragmented.

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Question 19

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To be successful in a growth industry,it is important to remain focused on the needs of the early adopters of the new product.

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Question 20

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By their choices of competitive actions and decisions about product attributes,managers can speed up or slow down the rate of progress of an industry through the stages of the industry life cycle.

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