The strength or weakness of the potential entry of rivals as a competitive force isMultiple Choicestrongly correlated with the level of supplier power and with the number of suppliers that may seek to integrate forwards into the industry.contingent upon the strength of buyer loyalty to existing brands.contingent upon whether the industry’s growth and profit prospects are strongly attractive to potential entry candidates.contingent upon whether the strategies of industry members are well matched to the industry’s key success factors.strongly correlated with the degree to which the industry’s driving forces make it harder or easier for new entrants to be successful.

The rivalry among competing sellers in an industry intensifiesMultiple Choicewhen buyer demand for the product is growing rapidly.when customers are brand loyal and their costs to switch to competing brands or substitute products are relatively high.when buyer demand is strong and sellers have little or no excess capacity and only minimal inventories.as the number of rivals increases and as they become more equal in size and competitive capability.when the products of rival sellers are highly differentiated products and the industry consists of so many rivals that any one company’s actions have little direct impact on rivals’ business.

Which of the following conditions generally raise the barriers to entering an industry?Multiple Choicelow levels of brand loyalty on the part of customers and the presence of more than 20 rivals in the industryrapid market growth, low buyer switching costs, and weak brand preferences and customer loyaltyproduct offerings that are pretty much standardized from rival to rivalhigh capital requirements, difficulties in building a network of distributors-retailers and securing adequate space on retailers’ shelves, and the likelihood that industry incumbents will strongly contest the efforts of new entrants to gain a market footholdThe industry is not characterized by scale economies and/or sizable learning or experience curve effects, and few firms in the industry hold key patents and/or possess significant proprietary technology not readily available to a newcomer.

part of the industry characteristics of an attractive industry where firms can achieve strategic competitiveness and earn above-average returns?Question 7Answera.Suppliers and buyers with little bargaining powerb.Low entry barriersc.Strong competitive threats from product substitutesd.Moderate to high rivalry

Which of the following is not a reason that industry rivals are often motivated to enter into strategic partnerships with key suppliers?Multiple Choiceto enhance the quality of parts and components being supplied and/or to reduce defect ratesto speed the availability of next-generation componentsto reduce the bargaining power they face from buyers of their productsto squeeze out important cost savings for both themselves and their suppliers

A company's strengths are important because theyMultiple Choicepave the way for establishing a low-cost advantage over rivals.provide extra muscle in helping lengthen the company's value chain.provide extra organizational muscle in turning a core competence into a key success factor.represent the quality of its competitive assets that enhance its competitiveness in the marketplace.give it competitive protection against the industry's driving forces.