Strategic Management
4th Edition
ISBN: 9781259927621
Author: Frank T. Rothaermel The Nancy and Russell McDonough Chair; Professor of Strategy and Sloan Industry Studies Fellow
Publisher: McGraw-Hill Education
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Question
Chapter 3, Problem 2DQ
Summary Introduction
To determine: The way the five forces model would affect the average profitability of the industry.
Introduction:
Strategic management refers to formulating and implementing the way to achieve the goals by considering available resource and the internal and external environment. It will be framed by the top management on behalf of an organization.
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Students have asked these similar questions
How do the five competitive forces in Porter’s five forces model affect the average profitability of the industry? For example, in what way might weak forces increase industry profits, and in what way do strong forces reduce industry profits? Identify an industry in which many of the competitors seem to be having financial performance problems. Which of the five forces seem to be strongest?
Identify the six forces that shape competition in an industry. Describe how changes in the strength of these forces affect prices, profitability, and under which circumstances each can be considered a threat or opportunity. Why is a competitive analysis using the competitive forces framework a benefit to industry?
A profitable company will make it a point to determine how its competitors are doing business and try to do it better themselves. Benchmarking is one of the most effective tools available to an organization to ensure that these goals are being met.
Many organizations use benchmarking as a way to measure organizational performance. What are the pros and cons of this approach? Has this approach always been used as a competitive tool? Provide at least two examples of companies using this type of tool to help them remain competitive within their market.
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- Competitive advantage can be defined as: Group of answer choices A firm’s ability to establish market leadership. A firm’s ability to grow faster than its competitors. A firm’s potential to earn a rate of profit that is persistently higher than its rivals. A firm’s potential for launching innovative new products.arrow_forwardConsider how contemporary business environments can be supported by a strategic focus on cost management, business analytics, and total quality management to enhance decision-making. Discuss how one of these alternative costing methods supports a company's ongoing competitive advantage in a business. Explain your rationale.arrow_forwardSuppose that General Electric and Toyota Motors are both planning to manufacture electric cars. Which company do you think will have a competitive advantage in this venture? Justify your answer by enumerating the competitive advantages of the firm that you have chosen if it pursues this business.arrow_forward
- Assess the overall attractiveness of the market for the company’s expansion based on your findings, ensuring that the market is indeed attractive for expansion.arrow_forwardIdentity the contextual influence that you believe will pose the greatest challenge to companies' competitiveness and identify the contextual influence that will pose the least challenge to companies' competitiveness.arrow_forwardDiscuss the Five forces Model of competition put forth by Michael Porter. Also discuss why a company must constantly analyze its competition and the methods it can use to assess its competitive environment.arrow_forward
- What occurs when a company seeks to match what a competitor is doing while maintaining its existing competitive position?arrow_forwardBarriers to entry and competitor analysis are not part of the business plan. true or false?arrow_forwardWhen does a firm have a competitive advantage over its rivals?arrow_forward
- True or False? The competitive intelligence system of a firm supplies key information to relevant decision makers about the firm's competitors.arrow_forwardDoing nothing would yield how much profit if favorable market conditions prevail according to the following profit decision table? Alternative Favorable Market Do Nothing $27,000 $12,000 $0 -$15,000 $27,000 Unfavorable Market -$15,000arrow_forwardWhich is the most important for company's competitive advantage: internal consistency or market competitiveness?arrow_forward
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