#1
What is Porter's Five Forces framework used for in competitive strategy?
To assess competitive intensity and attractiveness of an industry
ExplanationAnalyzing industry dynamics and competitiveness.
#2
Which of the following is NOT a component of Porter's Five Forces framework?
Economies of scale
ExplanationExclusion of a factor unrelated to competitive forces.
#3
What is the concept of 'Blue Ocean Strategy' in competitive strategy?
Creating uncontested market space
ExplanationPursuing innovation to find untapped market opportunities.
#4
What is the role of SWOT analysis in competitive strategy?
To evaluate internal strengths and weaknesses and external opportunities and threats
ExplanationAssessing internal and external factors for strategy formulation.
#5
What does the term 'first mover advantage' refer to in competitive strategy?
The advantage gained by being the first to enter a market or industry
ExplanationBenefiting from being an early market entrant.
#6
Which of the following is NOT a characteristic of a successful competitive strategy?
Imitability
ExplanationAvoiding easy replication by competitors.
#7
In the context of competitive strategy, what does the term 'market segmentation' refer to?
The division of a market into distinct groups of buyers with different needs, characteristics, or behaviors
ExplanationCategorizing buyers based on diverse traits.
#8
Which of the following is an example of a differentiation strategy?
Product innovation
ExplanationDistinguishing through unique product features.
#9
What is the role of game theory in competitive strategy?
To analyze economic behavior in strategic settings
ExplanationStudying strategic interactions and decision-making.
#10
Which of the following is NOT a factor contributing to competitive intensity?
Market demand
ExplanationExclusion of market demand as a determinant of competitive intensity.