Industry Environment Factors Quiz

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What is the main purpose of the 'Threat of New Entrants' force in Porter's Five Forces model?

To assess the bargaining power of suppliers

To evaluate the bargaining power of customers

To determine the ease with which new competitors can enter the industry and compete effectively (correct)

To analyze the intensity of competition among existing firms in the industry

Which of the following is NOT considered a barrier to entry according to Porter's Five Forces model?

Economies of scale

Product differentiation

Supplier bargaining power (correct)

Capital requirements

Which factor is most likely to contribute to intense rivalry among existing firms in an industry, according to Porter's Five Forces model?

A high rate of industry growth

A high number of competitors (correct)

Low fixed costs

Low exit barriers

How do firms typically respond to a competitive move by one of their rivals, according to Porter's Five Forces model?

They retaliate with a similar competitive move to defend their market position Signup and view all the answers

Which of the following is NOT a factor that can contribute to intense rivalry among existing firms in an industry, according to Porter's Five Forces model?

High customer switching costs Signup and view all the answers

Which of the following is NOT a potential barrier to entry in an industry, according to Porter's Five Forces model?

Supplier bargaining power Signup and view all the answers

What is the purpose of an External Factor Analysis Summary (EFAS) table?

To list opportunities and threats for a company Signup and view all the answers

How is each factor's weighted score calculated in the EFAS table?

By multiplying weight with rating Signup and view all the answers

Which aspect of a company's strategic position is impacted by the factors listed in an EFAS table?

Competitive advantage Signup and view all the answers

According to the EFAS table, which of the following poses the greatest threat to Skechers USA?

Dominance of four major companies controlling 75% of the market Signup and view all the answers

Which of the following represents a threat from Porter's five forces model?

All of the above Signup and view all the answers

Which of the following threats is related to the external environment of Skechers USA?

Violation of import laws Signup and view all the answers

What is the purpose of determining the sources of competitive advantage under each scenario?

To strategize based on strengths that can set the company apart Signup and view all the answers

Why is it important to analyze competitor behavior under each scenario?

To anticipate responses and plan strategic moves accordingly Signup and view all the answers

In strategic planning, what role do internally consistent scenarios play?

Assisting in making assumptions about future trends Signup and view all the answers

How does assessing the industry situation under each scenario benefit strategy formulation?

By providing insights into possible future outcomes Signup and view all the answers

What is the significance of selecting scenarios that are most likely to have a strong impact on the company's future?

To make informed decisions in strategy formulation Signup and view all the answers

Why is it essential to make a range of plausible assumptions about future trends?

To enable preparing for various possible outcomes Signup and view all the answers

What is the primary purpose of an industry matrix?

To summarize the key success factors within a particular industry Signup and view all the answers

What is the primary purpose of competitive intelligence?

To gather information on a company's competitors through formal programs Signup and view all the answers

Which of the following is NOT a common source of competitive intelligence?

Supplier relationships Signup and view all the answers

Which of the following is NOT a question that can be used to monitor competitors for strategic planning, according to the text?

How much do they spend on marketing? Signup and view all the answers

Which of the following is a key question to ask when monitoring competitors for strategic planning?

What is their cost base and liquidity? Signup and view all the answers

Which of the following is NOT a common source of competitive intelligence mentioned in the text?