Podcast
Questions and Answers
What is one benefit of identifying barriers to mobility?
What is one benefit of identifying barriers to mobility?
- It protects a group from attacks by other groups. (correct)
- It eliminates the bargaining power of suppliers.
- It decreases the number of new entrants in the market.
- It helps to increase competition among industry players.
How does the Internet affect the bargaining power of buyers?
How does the Internet affect the bargaining power of buyers?
- It raises switching costs for buyers, making them loyal to suppliers.
- It increases buyers' access to information, reducing their bargaining power. (correct)
- It empowers end users through intermediaries in distribution channels.
- It decreases information availability, empowering suppliers.
What is a disadvantage of online procurement methods for suppliers?
What is a disadvantage of online procurement methods for suppliers?
- They limit suppliers' access to customers.
- They create more opportunities for differentiation.
- They increase competition among suppliers. (correct)
- They reduce the bargaining power of suppliers.
In the context of competitive forces, what can online capabilities do to industry sales?
In the context of competitive forces, what can online capabilities do to industry sales?
Which of the following reflects a threat posed by new entrants due to the Internet?
Which of the following reflects a threat posed by new entrants due to the Internet?
What strategic insights can be derived from analyzing industry trends?
What strategic insights can be derived from analyzing industry trends?
What is one way online capabilities affect the threat of substitutes?
What is one way online capabilities affect the threat of substitutes?
How does the Internet influence the bargaining power of suppliers?
How does the Internet influence the bargaining power of suppliers?
What is one factor that increases the bargaining power of suppliers?
What is one factor that increases the bargaining power of suppliers?
What is a characteristic of substitute products?
What is a characteristic of substitute products?
What drives intense rivalry in an industry?
What drives intense rivalry in an industry?
How can buyers' product quality be affected by industry products?
How can buyers' product quality be affected by industry products?
What tactic is commonly used in industry rivalry?
What tactic is commonly used in industry rivalry?
What factor can reduce the power of suppliers?
What factor can reduce the power of suppliers?
What limits how high firms can profitably set their prices?
What limits how high firms can profitably set their prices?
What is a result of high exit barriers in an industry?
What is a result of high exit barriers in an industry?
Which of the following factors is NOT considered a barrier to entry in an industry?
Which of the following factors is NOT considered a barrier to entry in an industry?
What effect does product differentiation have on new entrants into an industry?
What effect does product differentiation have on new entrants into an industry?
Which of the following is an example of backward integration that increases buyer power?
Which of the following is an example of backward integration that increases buyer power?
What is the primary reason that buyers can exercise bargaining power?
What is the primary reason that buyers can exercise bargaining power?
In Porter’s Five Forces Model, what does the 'threat of new entrants' refer to?
In Porter’s Five Forces Model, what does the 'threat of new entrants' refer to?
Which condition would likely make buyers' bargaining power weaker?
Which condition would likely make buyers' bargaining power weaker?
How does the presence of proprietary products affect competitive forces in an industry?
How does the presence of proprietary products affect competitive forces in an industry?
Which of the following characteristics signifies powerful buyer groups?
Which of the following characteristics signifies powerful buyer groups?
What is a primary consideration when conducting an industry analysis?
What is a primary consideration when conducting an industry analysis?
What does the five forces analysis implicitly assume?
What does the five forces analysis implicitly assume?
What additional consideration extends beyond the five forces analysis?
What additional consideration extends beyond the five forces analysis?
Which factor is NOT typically analyzed when identifying strategic groups within industries?
Which factor is NOT typically analyzed when identifying strategic groups within industries?
Which assumption is true regarding firms within an industry?
Which assumption is true regarding firms within an industry?
Why might low profit industries still be attractive to managers?
Why might low profit industries still be attractive to managers?
When considering quantitative factors in an industry analysis, which aspect is critical?
When considering quantitative factors in an industry analysis, which aspect is critical?
What is the main purpose of identifying strategic groups within industries?
What is the main purpose of identifying strategic groups within industries?
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Study Notes
Strategic Groups
- Analyzes firm behavior within an industry by clustering firms with similar strategies
- These firms often face similar competitive pressures and have similar opportunities
- Firms within a group may compete directly with one another
- Groups can vary in factors like product breadth, geographic scope, price/quality positioning, vertical integration, and distribution channels
- The concept assumes that not all firms in an industry are exactly alike, but also not totally different
Example: Strategic Groups within Industries
- The world automobile industry features numerous strategic groups with different competitive dynamics
Strategic Groups as an Analytic Tool
- Helps identify barriers to mobility that protect a group from attacks by other groups
- Helps identify groups whose competitive position may be marginal or tenuous
- Helps chart the future direction of firms’ strategies
- Helps to think through the implications of each industry trend for the strategic group as a whole
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