10 Questions
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?
Decline
Describe how the Industry Life Cycle model anticipates changes in demand and capacity.
By formulating appropriate strategies
What characterizes hypercompetitive industries?
Permanent innovation and competitive change
What term describes the phenomenon when an industry's stable structure is punctuated with periods of rapid change through innovation?
Punctuated Equilibrium
What can be significant determinants of a company's profitability apart from industry attractiveness?
Company resources and capabilities
In what situation is the embryonic stage sometimes skipped in industry growth?
Rapid growth situations
What term is used to describe the stage in the Industry Life Cycle where rivalry intensifies with excess capacity?
Industry Shakeout
This quiz covers the purpose and components of external analysis in strategic management, including assessing industry environment, competitive structure, company's position, major rivals, and national environments. Learn about identifying strategic opportunities and threats.
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