TH2003 Industry Analysis

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What is the primary goal of both the multi-domestic strategy and the global strategy?

To minimize competition

To increase production costs

To meet the demands of the local market (correct)

To reduce market sharing

Why is it important for an entrepreneur to be aware of the industry they are entering?

To take advantage of opportunities and succeed (correct)

To minimize market sharing

To reduce production costs

To avoid competition

What is the main purpose of a competitor analysis?

To reduce production costs

To increase market sharing

To identify opportunities in the market

To understand the position of major competitors (correct)

What type of competitor presents similar products and services?

Direct competitor Signup and view all the answers

What type of competitor presents close substitute products or services?

Indirect competitor Signup and view all the answers

What is the first step in conducting a competitor analysis?

Know who the competitors are Signup and view all the answers

What is an industry?

A group of businesses or companies producing similar products or services Signup and view all the answers

What is the main purpose of industry analysis?

To determine whether the industry is accessible or realistic for a new venture Signup and view all the answers

What are the two relevant trends for industry analysis?

Economic, social, technological, political, and regulatory trends Signup and view all the answers

What is an example of a business that adapts to environmental trends?

Earth Kitchen, a restaurant offering organic catering Signup and view all the answers

Why is it important for an entrepreneur to monitor market changes?

To ensure the products or services introduced will benefit the community Signup and view all the answers

What is the outcome of production and provision of products and services in response to emerging market changes?

It will depend on the emerging changes in the market Signup and view all the answers

What is the main reason why future competitors are important to consider?

Because they can adapt to market changes and become direct or indirect competitors Signup and view all the answers

What is the purpose of the competitive analysis grid?

To collect and organize information about competitors Signup and view all the answers

What is included in the competitor's overview when creating a competitive analysis grid?

Company's revenue, market share, size, management team, strengths, and weaknesses Signup and view all the answers

What is the next step after having a competitor's overview in the competitive analysis grid?

Do market research Signup and view all the answers

What can be a result of conducting a competitive analysis?

Knowing the company's stand against its competitors Signup and view all the answers

What is the main benefit of knowing the competitors in a market?

To be able to offer something different to attract the market's attention Signup and view all the answers

What is the primary purpose of analyzing rivalry among existing firms?

To know the industry profitability Signup and view all the answers

How does the airline industry compete highly despite being profitable?

By competing highly in terms of cost to support fuel prices and equipment-related facilities Signup and view all the answers

What is an effect of having numerous competitors in an industry?

Price reduction Signup and view all the answers

How do ventures in a slow-growth industry tend to behave?

They lower their prices to attract consumers Signup and view all the answers

What determines the nature and intensity of rivalry among existing firms?

Number and balance of competitors, and growth rate of the industry Signup and view all the answers

How do industries with a high growth rate tend to behave?

They tend to attract consumers immediately Signup and view all the answers

What is a method of primary market research?

Purchasing a competitor's product to study packaging and delivery experience Signup and view all the answers

What is the purpose of creating a comparison matrix?

To compare competitive products and own products in terms of type and features Signup and view all the answers

What is an example of secondary market research?

Reading company records Signup and view all the answers

What can an entrepreneur use to analyze the position of a venture in an industry?

Competitor analysis report Signup and view all the answers

Why is it important to know the competitors in an industry?

To differentiate oneself from other companies Signup and view all the answers

What is NOT a method of primary market research?

Examining the current economic conditions Signup and view all the answers