In Identifying an Industry's Key Success Factors,strategists Should

question 38

Multiple Choice

In identifying an industry's key success factors,strategists should

• A)try to single out all factors that play a major role in shaping whether buyer demand grows rapidly or slowly.
• B)consider on what basis customers choose between competing brands,what resources and competitive capabilities firms need to be competitively successful,and what shortcomings are almost certain to put a company at a significant competitive disadvantage.
• C)consider whether the number of strategic groups is increasing or decreasing and whether the five competitive forces are powerful or relatively weak.
• D)consider what it will take to overtake the company with the industry's overall best strategy.
• E)focus their attention on what it will take to capitalize on impacts of the industry's driving forces.

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Definitions:

Long-Run Supply Curve

A graph that shows the relationship between the price of a good and the quantity supplied by all firms in the market, assuming all inputs are variable and firms can enter or exit the market.

Elasticity

Elasticity measures how responsive the quantity demanded or supplied of a good or service is to a change in one of its determinants, such as price, income, or prices of related goods.

Constant-Cost Industry

An industry where the input prices remain stable as the industry's output changes, leading to a linear supply curve because costs do not vary with the level of production.