Home / Questions / Mass markets tend to be characterized by low profit margins
Mass markets tend to be characterized by low profit margins.
a. Trueb. False
2.An industry is defined as a group of firms producing goods and/or services that are similar to each other.
a. Trueb. False
3.A key proposition of the five forces framework is that industry structure is unrelated to firm performance and the strength of the five forces.
a. Trueb. False
4.A key indicator of intense rivalry among firms is low cost competitive actions and reactions.
a. Trueb. False
5.High exit costs from an industry tend to reduce the intensity of rivalry.
a. Trueb. False
6.Product proliferation is a potential strategy used to reduce the threat of potential entry.
a. Trueb. False
7.Substantial switching costs reduce the threat of potential entry.
a. Trueb. False
8.The threat of substitutes (products from different industries that satisfy customer needs being met by focal firms) is greater if there are low switching costs.
a. Trueb. False
9.Core features of the five forces model remain remarkably insightful when analyzing old industries but not new phenomena, such as e-commerce.
a. Trueb. False
10.Japanese firms do not tend to maintain close relationships with their suppliers.
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