When Evaluating Whether an Industry's Environment Presents a Company with an Above-Average

question 8

Multiple Choice

When evaluating whether an industry's environment presents a company with an above-average profitability and an attractive business opportunity, it primarily involves

• A) determining the industry outlook for future profitability.
• B) determining which firms in the industry have a competitive advantage and how they got their advantage.
• C) determining the overall strength of the five competitive forces.
• D) constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group to determine the overall attractiveness of all the strategic groups.
• E) using value chain analysis to determine the relative cost positions of rival firms and to learn who the industry's low-cost producer is.

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Definitions:

Teams

Groups of individuals working together towards a common goal, characterized by collaborative effort and shared responsibility.

Minimize

To reduce something to the smallest possible amount or degree.

Likelihood

The probability or chance that a particular event will occur.

Practice

The repeated exercise or application of an activity or skill to acquire or maintain proficiency in it.