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 an entry barrier to an industry?a.expected competitor retaliationb.economies of scalec.customer product loyaltyd.bargaining power of suppliers

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.

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.

Potential entrants are more likely to be deterred from actually entering an industry when Question 2AnswerA.incumbent firms are willing and able to be aggressive in defending their market positions against entry.B.incumbent firms are complacent.C.buyers are not particularly price-sensitive and the industry already contains a dozen or more rivals.D.the relative cost positions of incumbent firms are about the same, such that no one incumbent has a meaningful cost advantage.E.buyer switching costs are moderately low because of strong product differentiation among incumbent firms.

Consider the market structure of perfect competition. What does the lack of entry barriers indicate?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aAll firms will end up producing a unique and different productbThere are no significant obstacles preventing firms from entering and leaving the industrycNo new firms can enter an already-established industrydFirms can enter the industry easily but cannot exit the industry easily