ENTR 355 Exam 2 | Questions and Answers Microsoft's power as a supplier of computer operating systems is ____ by the threat that it might enter the PC industry if PC makers balk too much at the cost of its software. Enhanced The consumer milk industry is characterized by slow growth, repeat (rat...
Microsoft's power as a supplier of computer operating systems is ____ by the threat that
it might enter the PC industry if PC makers balk too much at the cost of its software.
Enhanced
The consumer milk industry is characterized by slow growth, repeat (rather than new)
customers, and limited product innovation. This industry is an example of a(n) ______
industry.
Mature
When a firm varies its product or service offerings to meet the demands of the local
market, it is pursuing a _____ strategy.
Multidomestic
The five forces model looks at forces that determine _____ profitability.
Industry
Businesses offering close substitute products are called ____ competitors.
Indirect
At the company level, a firm's ____ determines how the company is situated relative to
its competitors.
Launch
The five forces model helps one understand the ___ of an industry.
Dynamics
The renting of DVDs and video games by mail is an example of a(n) ____ industry.
Declining
It is useful for a new venture to think about its position at both the _____ level and the
product or service level.
Company
A(n) _____ advantage is a sometimes-insurmountable advantage gained by the first
company to establish a significant position in a new market.
first mover
When there are _____ suppliers to provide a critical product to a large number of
buyers, the suppliers have an advantage.
only a few
, Economic trends, ____ trends, technological advances, and political and regulatory
changes are the most important environmental trends for entrepreneurs to study.
Social
The ability of firms in some industries to benefit from an increasing ability to outsource
manufacturing or service functions to lower-cost foreign labor markets is an example of
a(n) _____ trend.
Business
Once a firm decides to enter an industry and chooses a market in which to compete, it
must gain an understanding of its _____ environment.
Competitive
Which of the following is NOT a primary factor that determines the nature and intensity
of the rivalry among existing firms in an industry?
threat of forward integration
Industries with ___ fixed costs have a high degree of intensity of rivalry.
High
The greater the importance of an item is to a buyer, the _____ the buyer will be to the
price.
more sensitive
A geographic roll-out opportunity is available in a(n) ______ industry.
Fragmented
A leadership strategy in which a firm tries to become the dominant player in the industry
is a strategy that works in ____ industries.
Declining
In general, industries are more attractive when the threat of substitutes is ___.
Low
A _____ is a condition that creates a disincentive for a new firm to enter an industry.
barrier to entry
Threat of ____ integration increases the bargaining power of buyers.
Backward
A(n) _____ industry is one in which standard operating procedures have yet to be
developed.
Emerging
Which of the following is NOT a force as per the five forces model?
bargaining power of stockholders
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