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50 Cards in this Set

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  • Back

A fragemented industry is composed of

large and small number of small and medium sized firms

which of the following is not a characteristic of a fragmented industry?

high barriers to exit

firms sometimes pursue a chaining strategy to

obtain the advantages of cost leadership

franchising is a business level strategy that allows companies to

enjoy the competitive advantages of cost leadership or differentiation

all of these apply to amazon.com and ebay except

merged with each other to compete with borders

a horizontal merger is a

merger of fims within the same industry

as the supermarket industry began to grow with the opening hundreds of new stores, supermarkets were able to

capture economies of scale not previously available

an embryonic industry is one that

is just beginning to develop

most embryonic industries arise from

a technological breakthrough

consumer demand for products of an embryonic industry is

frequently limited at first

at the growth stage of an industry

ongoing technological progress makes a product easier to use


key complementary products are developed


companies in the industry find ways to reduce costs


demand for the product increases

the first group of customers to enter the market for a new product are called

innovators

the growth stage of a product's life cycle is the

time when companies attempt to secure their grip over customers in existing market segments

there are many real estate offices in most locations. some of them are small independent firms; some are larger and affiliated with national chains. thus, the real estate sales industry

is fragmented

one strategy used to consolidate fragmented industries is

chaining

which of the following are characteristics of fragmented industries?

a large number of small competitors


low econimies of scale


many custom made or specialty firms


low consolidation

to compete in the fragmented restaurant industry, red lobster corporation built and now operates hundreds of stores across the us and canada. red lobster is using which type of strategy?

chaining

which of the following best describes an industry that consists of many small firms?

fragmented

which of the following strategies for industries grants the right to use the parents name, reputation, and business model in a particular location or area in return for a fee and often a percentage of the profits?

franchising

factors leading to the slow growth of demand in embryonic industries include all of the following

poor quality of the first products


lack of complementary products


high production costs of the products


lack of distribution channels for the products

customers who have a practical interest in using a new technology in the future and who are willing to experiment and envision new uses for the technology are called

early adopters

which group represents the leading wave or edge of the mass market

early majority

which factors tend to accelerate customer demand for a product

products relative advantage


products compatiability


simplicity of products use


degree to which a product can be experimented with

in a harvest strategy, a company

decreases its investment in a business

in some situations, pricing strategies can be used to

deter entry by other companies

which customer groups is not very price sensitive

innovators

which of the following factors that affect market growth rates refers to the degree to which a new product is perceived as better at satisfying customer needs than the product it supersedes?

relative advantage

which of the following factors that affect growth rates refers to the degree to which a product is perceived as difficult to understand and use?

complexity

which of the following factors that affect market growth rates refers to the degree to which the results of using and enjoying a new product can be seen and appreciated by other people

observability

some researchers claim that the spread of new products is similar to a viral infection, suggesting that

lead adopters become infected or enthused with the new product and subsequently infect others by telling them about it

in embryonic industries, customer demand is typically

low

john, a computer scientist, is willing to pay premium prices to be one of the first to have new versions of software packages. john is in the ___ customer group

innovator

which of the following factors is crucial in choosing an investment strategy to pursue and thus maximize the profitability of a company's business model

the competitive advantage that a companys businsess model gives it in a n industry relative to competitors and the stage of the industy life cycle

which of the following shakeout strategies requires a company to limit or decrease its investment in a business and to extract, or milk, the investment as much as it can

harvest strategy

in which stage of the industry life cycle do both cost leaders and differentiators adapt a hold and maintain strattegy to defend their business models and ward off threats from focused companies that might be appearing

mature

successful companies in a mature industry are most interested in

increasing entry barriers

mature industries are generally characterized by

a small number of large firms

which strategy allows interdependent firms indirectly coordinate their actions

price signaling

which strategies helps companies with high cost structures, allowing them to survive without having to implement strategies to become more productive and efficient

price leadership

a telecommunications firm is working on the next generation of switching equipment that allows calls to be digitally transmitted from sender to receiver. if the new product will be sold to existing customers, the firm is pursuing a strategy of

product development

factors that cause excess industry capacity

widely deployed, cost reducing technological developments


industry competitive factors


new entrants into the industry


declining customer demand


deciding on a strategy, a company in a declining industry must do all of the following

manage industry capacity


evaluate its strengths relative to the remaining pockets of demand


evaluate the severity of decline


monitor its cash flow

competitive intensity in a declining industry is greates when

exit barriers are high

product proliferation occurs in which stage of the product life cycle

maturity

by the shakeout stage of a products life cycle, demand is

increasing slowly

most market demand and industry profits arise when

early and late majority users enter the market

companies like ikea can be described as cost leaders. ikea established networks of linked merchandising outlets that are interconnected by IT and function as one large company. which of the following strategies for consolidating a fragmented industry does ikea pursue

chaining

meineke car centers, dunkin donuts, burger king, subway, and liberty tax service all use which of the following strategies for consolidating in a fragemented industry

franchising

today, just about everyone has a cell phone. however, thomas did not own a cell phone until he took a job as a store manager where he was required to own a cell phone so that his employees may reach him in case of an emergency. which of the following customer groups does thomas belong to?

laggards

music cds and newspaper sales have been falling as users turn to the internet for their music and news. which of the following is not a strategy for companies in these declining industries?

chaining