Your Results: The correct answer for each question is indicated by a . 1 INCORRECT Which of the following is not among the factors that determine whether competitive rivalry among industry members is strong, moderate, or weak? A) Whether buyer demand for the product is growing rapidly or slowly B) Whether customers' costs to switch brands is low or high C) How active industry rivals are in initiating fresh competitive moves and in using the various weapons of competition to improve their market standing and business performance D) Whether there are few or many rival sellers and whether there are big differences in their sizes and competitive capabilities E) Whether industry members are vertically integrated and whether the industry is characterized by significant scale economies and rapid technological change 2 INCORRECT The rivalry among competing sellers in an industry intensifies A) when buyer demand for the product is growing rapidly. B) when customers are brand loyal and their costs to switch to competing brands or substitute products are relatively high. C) when buyer demand is strong and sellers have little or no excess capacity and only minimal inventories. D) as the number of rivals increases and as they become more equal in size and competitive capability.
E) when the products of rival sellers are highly differentiated products and the industry consists of so many rivals that any one company's actions have little direct impact on rivals' business. 3 INCORRECT Competitive pressures associated with the threat of new entrants grow stronger when A) buyer demand is growing slowly and the pool of entry candidates is small. B) the number of customers for the industry's product is large and the product offerings of rival sellers are strongly differentiated. C) industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence, when current industry members are unable or unwilling to strongly contest the entry of newcomers, and when a newcomer can reasonably expect to earn attractive profits.
You've reached the end of your free preview.
Want to read all 6 pages?
- Spring '13
- Management, Barriers to entry