Dealing with competition - MCQs with answers - Part 1

Dealing with competition - MCQs with answers - Part 1

Competitive forces

1. Michael Porter has identified ____________forces that decide the intrinsic long-run attractiveness of a market or market segment.

a) Five
b) Six
c) Four
d) None of the above

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2. The forces that measure the intrinsic long-run attractiveness of a market or market segment are:

a) Suppliers, buyers and substitutes
b) Industry competitors and potential entrants
c) Both a and b
d) None of the above.

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3. The industry competition intensifies when there

a) If fixed costs or exit barriers are high
b) If fixed costs or exit barriers are low
c) Entry barriers are high
d) All of the above

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4. The most attractive segment for new entrants is one in which

a) Exit barriers are low and entry barriers are high
b) Both entry and exit barriers are high
c) Entry barriers are low and exit barriers are high
d) None of the above

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5. When both exit and entry barriers are high,

a) Profit potential is low
b) No profit
c) Profit potential is high
d) None of the above

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6. The worst form of market segment is when:

a) Exit barriers are high and entry barriers are low
b) Exit barriers are low and entry barriers are high
c) Both entry and exit barriers are low
d) None of the above

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7. The airline industry has

a) Exit barriers are high and entry barriers are low
b) Exit barriers are low and entry barriers are high
c) Both entry and exit barriers are low
d) None of the above

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8. A company is more likely to hurt by

a) Emerging competitors
b) New technologies
c) Current competitors
d) Both a and b

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9. Nimble peers are able to compete with multinational companies on home due to

a) International tools
b) Advanced equipments
c) Local factors of production
d) All of the above

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10. Marketers classifies industries according to

a) Degree of product differentiation and number of sellers
b) Absence or presence of exit, entry and mobility barriers
c) Degree of globalization and degree of vertical integration
d) All of the above

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