External Analysis in Strategic Management
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Questions and Answers

In which stage of the Industry Life Cycle does rivalry intensify based on the rate of decline and exit barriers?

Decline

What is the term used to describe an industry with low to no growth and market saturation?

Mature

What term describes the phenomenon when an industry evolves and the nature of the five forces change?

Industry Life Cycle

What is the term for the situation when industry growth becomes negative?

<p>Decline</p> Signup and view all the answers

Describe how the Industry Life Cycle model anticipates changes in demand and capacity.

<p>By formulating appropriate strategies</p> Signup and view all the answers

What characterizes hypercompetitive industries?

<p>Permanent innovation and competitive change</p> Signup and view all the answers

What term describes the phenomenon when an industry's stable structure is punctuated with periods of rapid change through innovation?

<p>Punctuated Equilibrium</p> Signup and view all the answers

What can be significant determinants of a company's profitability apart from industry attractiveness?

<p>Company resources and capabilities</p> Signup and view all the answers

In what situation is the embryonic stage sometimes skipped in industry growth?

<p>Rapid growth situations</p> Signup and view all the answers

What term is used to describe the stage in the Industry Life Cycle where rivalry intensifies with excess capacity?

<p>Industry Shakeout</p> Signup and view all the answers

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