Question: A multinational company is assessing its internationalization strategy. Which of the following is an example of local responsiveness? Developing best practices Exporting a uniform product to all regions Changing menu items to match regional tastes Standardizing a production process…
Question: Why is having dynamic capability critical to success in the pharmaceutical industry? It eliminates competition. It prevents other firms from joining the market. It allows firms to adjust to changing business conditions. It allows firms to charge more for…
Question: Which of the following do we observe during the era of ferment within an industry? A new S-curve forms when a disruption occurs A very short period of change A dominant design and no experimentation Firms exiting the market…
Question: Which of the following is a reason why incumbents often have difficulty when facing a disruption during a competitive life cycle? Too many experts in the room Large customer base Too much capital Organizational structure Answers: Too much capital…
Question: Review question: Which of the following describes a perfectly competitive market? Knowledge is limited. Barriers to entry and exit are non-existent. There are few firms competing in an industry. Products are varied. Answers: Barriers to entry and exit are…
Question: Why is understanding industry structure important for firms? Industry forces are constantly changing. Firms cannot earn economic rents in industries with one or more strong competitive forces. Firms can position themselves to minimize the threats posed by competitive forces.…
Question: A small town has a thriving restaurant scene, with over a 150 dining establishments. Seeking to reduce costs, several restaurants join together to negotiate for table linen supplies and laundering. How might that impact firms in the table linen…
Question: Earthbound Farm dominates the growing organic produce market in the United States, selling nationally at markets such as Costco and Whole Foods. As an analyst, how might you describe their threat of rivalry within the organic produce market? High…
Question: All else being equal, which of the following is likely to lead to less intense rivalry in an industry? Heterogeneous yet similarly sized competitors High degree of product differentiation Many competitors High exit barriers Answers: High degree of product…
Question: Gasoline prices fluctuate significantly over time, but these price changes have little effect on car travel. This indicates that demand is _ and the threat of substitutes is _. Inelastic, high Elastic, low Inelastic, low Elastic, high Answers: Elastic,…
