BUS 1-8 Competition

What is the primary purpose of conducting a competitive analysis in business?

• To create a monopoly
• To understand the competitive landscape and identify threats and opportunities
• To increase product prices
• To eliminate all competitors

Which of the following best describes direct competition?

• Competition where companies offer essentially the same product or service
• Competition between companies offering different products
• Competition that occurs only in the same geographical area
• Competition that involves only large corporations

What role do substitutes play in competitive analysis?

• They are irrelevant to competitive analysis.
• They are the only form of competition.
• They represent direct competition.
• They represent indirect competition that can satisfy the same need.

What does Michael Porter’s 'Five Forces' framework help analyze?

• The supply chain logistics
• The marketing strategies of a business
• The competitive forces within an industry
• The financial performance of a company

What is primary data in the context of competitive research?

• Data collected from secondary sources like reports
• Information that is freely available on the internet
• Information gathered from first-hand experience, such as customer interviews
• Data that is outdated and no longer relevant

How does a competitive analysis grid assist businesses?

• It eliminates the need for market research.
• It provides a list of all competitors in the market.
• It illustrates differences between competitors using a visual format.
• It guarantees a competitive advantage.

Which of the following statements about competition is true?

• Competition eliminates the need for innovation.
• Competition is harmful to all businesses.
• Competition can lead to lower prices and better quality for consumers.
• Competition only benefits businesses.

What is a common misconception about monopolistic behavior?

• Monopolies can lead to higher prices and less choice.
• Monopolies are always illegal.
• Monopolies encourage competition.
• Monopolies are beneficial for consumers.

Which market structure is characterized by a single company controlling the supply of a good or service?

• Monopoly
• Pure competition
• Monopolistic competition
• Oligopoly

What is the purpose of antitrust laws?

• To limit the number of businesses in a market
• To increase prices for consumers
• To ensure fair competition and protect consumers
• To promote monopolies