24 Questions
What is the main purpose of the 'Threat of New Entrants' force in Porter's Five Forces model?
To determine the ease with which new competitors can enter the industry and compete effectively
Which of the following is NOT considered a barrier to entry according to Porter's Five Forces model?
Supplier bargaining power
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 number of competitors
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
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
Which of the following is NOT a potential barrier to entry in an industry, according to Porter's Five Forces model?
Supplier bargaining power
What is the purpose of an External Factor Analysis Summary (EFAS) table?
To list opportunities and threats for a company
How is each factor's weighted score calculated in the EFAS table?
By multiplying weight with rating
Which aspect of a company's strategic position is impacted by the factors listed in an EFAS table?
Competitive advantage
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
Which of the following represents a threat from Porter's five forces model?
All of the above
Which of the following threats is related to the external environment of Skechers USA?
Violation of import laws
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
Why is it important to analyze competitor behavior under each scenario?
To anticipate responses and plan strategic moves accordingly
In strategic planning, what role do internally consistent scenarios play?
Assisting in making assumptions about future trends
How does assessing the industry situation under each scenario benefit strategy formulation?
By providing insights into possible future outcomes
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
Why is it essential to make a range of plausible assumptions about future trends?
To enable preparing for various possible outcomes
What is the primary purpose of an industry matrix?
To summarize the key success factors within a particular industry
What is the primary purpose of competitive intelligence?
To gather information on a company's competitors through formal programs
Which of the following is NOT a common source of competitive intelligence?
Supplier relationships
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?
Which of the following is a key question to ask when monitoring competitors for strategic planning?
What is their cost base and liquidity?
Which of the following is NOT a common source of competitive intelligence mentioned in the text?
Supplier relationships
Test your knowledge on external environmental factors affecting industries, barriers to entry and industry competition. Includes questions on threats from new entrants and forces driving industry competition.
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