Submitted by: Submitted by emelyann
Views: 683
Words: 6714
Pages: 27
Category: Business and Industry
Date Submitted: 04/11/2012 07:22 AM
3) The essence of marketing strategy is successfully relating the strengths of an organization to its environment.
Answer: TRUE
Diff: 2 Page Ref: 485
AACSB: Reflective Thinking
4) Competition in an industry tends to drive rates of return on invested capital up towards the level of "perfect competition."
Answer: FALSE
Diff: 2 Page Ref: 485
AACSB: Reflective Thinking
5) "Switching costs" are one of the barriers to entry in Porter's five forces model.
Answer: TRUE
Diff: 2 Page Ref: 486
AACSB: Reflective Thinking
6) Unique product attributes represent a barrier to industry entry known as differentiation.
Answer: FALSE
Diff: 2 Page Ref: 486
AACSB: Reflective Thinking
7) In many industries, the digital revolution has altered the nature of competition by increasing the cost for potential new entrants to an industry.
Answer: TRUE
Diff: 3 Page Ref: 487
AACSB: Reflective Thinking
8) Analyzed in terms of Porter's five forces model, online music file sharing services represent a threat to the music industry in the form of a substitute product.
Answer: TRUE
Diff: 2 Page Ref: 487
AACSB: Reflective Thinking
9) Analyzed in terms of Porter's five forces model, Wal-Mart's ability to dictate terms to the music industry is one indication of the retail giant's supplier power.
Answer: FALSE
Diff: 2 Page Ref: 487-488
AACSB: Reflective Thinking
10) Microsoft and Intel are two companies that illustrate the concept of "bargaining power of suppliers" in Porter's five forces model of industry competition.
Answer: TRUE
Diff: 2 Page Ref: 488
AACSB: Reflective Thinking
11) In Michael Porter's model, "buyers" refers to manufacturers (e.g., GM) and retailers (e.g. Wal-Mart), rather than consumers.
Answer: TRUE
Diff: 2 Page Ref: 487
AACSB: Reflective Thinking
12) If suppliers have enough leverage over industry firms, they can raise prices high...