20 Questions
What is the primary focus of industry analysis?
Environmental and business trends
Which of the following is NOT one of Porter's five forces model?
Economies of scale
What is a barrier to entry in an industry?
Technological advances
What are the main components of 'industry trends' according to the text?
Environmental trends and business trends
What determines industry profitability according to the text?
Cost advantages independent of size
What are the primary types of industries and the opportunities they offer?
Emerging industry/first-mover advantage; fragmented industry/consolidation; mature industry/emphasis on service and process innovation; declining industry/leadership, niche, harvest, and divest; global industry/multidomestic strategy or global strategy
What is a competitive analysis grid used for?
To organize information about competitors and identify primary sources of competitive advantage
What are the three groups of competitors a new firm faces?
Direct competitors, indirect competitors, future competitors
What nontraditional barriers to entry are particularly well suited to entrepreneurial firms?
Unique business model, special Internet domain name, inventing a new approach to an industry
What are the four industry-related questions that a firm should ask before entering an industry?
Is the industry a realistic place for a new venture; Can our firm do a better job than the industry as a whole in avoiding or diminishing threats to profitability; Is there a unique position in the industry that avoids or diminishes forces suppressing profitability; Is there a superior business model that can be put in place that would be hard for industry incumbents to duplicate
Which of the following best describes business model innovation?
Initiatives that revolutionize how products are sold in an industry
What is the primary importance of having a clearly articulated business model?
To serve as an ongoing extension of feasibility analysis
What does the value chain help a firm to identify?
Opportunities to enhance its competitive strategies
What are the two fatal flaws that can make a business model a failure from the outset?
Complete misread of the customer and unsound economics
Which of the following is NOT a major component of a firm’s business model?
Market share analysis
What does a firm’s business model describe according to the text?
The core logic of a firm to all its stakeholders
What does business model innovation refer to according to the text?
Revolutionizing how products are sold in an industry
Why is a clearly articulated business model important according to the text?
To focus attention on how all the elements of a business fit together
What does the value chain show according to the text?
How products move from the raw-material stage to the final consumer
What are the four major components of a firm's business model according to the text?
Core strategy, strategic resources, partnership networks, customer interface
Test your knowledge of industry analysis, including environmental and business trends, and their impact on a firm's decision to enter an industry and gain a competitive advantage.
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