5 Forces & VRIO Analysis

Front

What is the first step in conducting an industry analysis?

Back

Determine the industry

Answer explanation

Front

What is the second step in conducting an industry analysis?

Back

Establishing the nature and strength of the five forces

Front

What is the third step in conducting an industry analysis? Options: Identify drivers of industry change, Profit margins, Marketing strategies, Competitor weaknesses

Back

Identify drivers of industry change

Front

What is the fourth step in conducting an industry analysis?

Back

Synthesize to determine if it’s a good industry to be in

Front

What is the fifth step in conducting an industry analysis?

Back

Consider how the firm should compete

Front

What allows suppliers to exert bargaining power?

Back

Threatening to raise prices or reduce the quality of goods and services

Front

When do suppliers have high bargaining power? Options: When only a few firms dominate the industry, When buyers have high switching costs, When suppliers sell to several industries, All of the above

Back

When only a few firms dominate the industry

Answer explanation

Think Walmart

Front

How can buyers exert bargaining power? Options: By forcing down prices, bargaining for higher quality, or playing competitors against each other, By lowering their own costs, By diversifying their product offerings, By avoiding standard products

Back

By forcing down prices, bargaining for higher quality, or playing competitors against each other

Front

High bArgAining pOwr: "W h n d o b y r h v h g b r g n g p w r?"

Back

High bArgAining pOwr occUr wHn bUy rS r f w in nUm b r AnD pUrChA S tAnDArD pR dUctS in LArg vO LUm S

Answer explanation

Walmart

Front

What factors influence the threat of new entrants? Options: Product differentiation, economies of scale, capital requirements, buyer's switching costs, and access to distribution channels, Low competition among existing firms, Strong reliance on a single supplier, High customer loyalty to existing brands

Back

Product differentiation, economies of scale, capital requirements, buyer's switching costs, and access to distribution channels

Answer explanation