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Which industry factor does not contribute to competitive rivalry?

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High costs of customers switching suppliers.

Price-cutting, large advertising budgets, and frequent introduction of new products.

A firm’s growth must come from winning other firms’ customers.

High fixed costs relative to variable costs.

none

Michael E. Porter’s competitive strategies model includes an analysis of the competitive forces that determine the attractiveness of an industry. These forces include 1)The stage of the industry life cycle; 2)Threats of, and barriers to, entry 3)Threat of substitutes 4)The threat of suppliers’ bargaining power

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I and II only.

I, II, III, and IV.

II, III, and IV only.

I and III only.

none

The concurrent action of basic competitive forces as defined by Porter’s model determines the

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Long-term profitability and the competitive intensity of the industry.

Entrance barriers that potential players must face to get into the industry.

Nonvalue-adding activities that should be eliminated.

Rivalry inside the industry.

none

During the growth stage of a product’s life cycle,

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The quality of products is poor.

New product models and features are introduced.

The quality of the products becomes more variable and products are less differentiated.

There is little difference between competing products.

none

Which of the following is a favorable condition for a firm competing in a profitable, expanding industry?

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A few suppliers who can restrict supply.

The firm has high costs relative to other firms in the industry.

Compet itors find it difficult to acquire the firm’s customers.

The firm does not have a strong customer base.

none

Structural considerations affecting the threat of substitutes include all of the following except

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Relative prices.

Cost of switching to substitutes.

Brand identity.

Customers’ inclination to use a substitute.

none

Which factor most likely encourages entry into an existing market?

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Knowledge of the industry, with high investments in development.

High product differentiation, principally produced by trademarks.

Low fixed exit costs.

Governmental subsidies for new investors.

none

A manufacturing company produces plastic utensils for a particular segment at the lowest possible cost. The company is pursuing a cost

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Focus strategy.

Differentiation strategy.

Leadership strategy.

Containment strategy.

none

What operations strategy is most likely to be adopted when the product sold by an organization is a commodity and the market is very large?

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Flexibility strategy.

Service strategy.

Quality strategy.

Cost strategy.

none

In a product’s life cycle, the first symptom of the decline stage is a decline in the

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Firm’s inventory levels.

Product’s prices.

Product’s sales.

Product’s production cost.