Entrepreneurship: Successfully Launching New Ventures, 3e [Barringer/Ireland]
Chapter 5 Industry and Competitor Analysis
1] BusinessesAtoZ, the company profiled in the opening feature for Chapter 5, has a unique
position in its industry. It is positioned:
A] as a small Web hosting company that offers a high degree of customer service
B] as a large Web hosting company that focuses primarily on keeping its customers up and
running
C] right in the middle offering the customer service advantages of a small Web hosting company
and the security advantages of a large Web hosting company
D] as an outsource provider to both small and large Web hosting companies
E] as a consulting company working with both small and large Web hosting companies
Answer: C
Diff: 2Page Ref: 145
Topic: Industry Analysis
AACSB: Reflective Thinking
2] Andrew Banks recently started a new firm in the snack food industry. Prior to starting his firm,
he spent considerable time doing research on the potential of the snack food industry. The
research that Andrew was doing is called:
A] industry analysis
B] sector analysis
C] network analysis
D] business analysis
E] division analysis
Answer: A
Diff: 1Page Ref: 146
Topic: Industry Analysis
3] A[n] ________ is a group of firms producing a similar product or service, such as soft drinks,
electronic games, or computers.
A] cluster
B] division
C] sector
D] industry
E] network
Answer: D
Diff: 1Page Ref: 146
Topic: Industry Analysis
1
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Entrepreneurship: Successfully Launching New Ventures, 5e [Barringer/Ireland]
Chapter 5 Industry and Competitor Analysis
1] Greenvelope, the company profiled in the opening feature of Chapter 5, believes it has created
sufficient barriers to entry to enable it to maintain a leadership position in the invitation industry.
Its barriers to entry include ________.
A] the price-point of its products, the amount of its funding, the strength of its management
team, and its partnership with a major player in the invitations industry
B] its intellectual property, the strength of its brand, its international presence, and its access to
distribution channels
C] the strength of its brand, its network of freelance designers, its social mission, and the
functionality of its Web site.
D] the innovative nature of its products, its network of freelance designers, the strength of its
management team, and economies of scale
E] its international presence, the price-point of its products, its social mission, and the innovative
nature of its products
Answer: E
Diff: 2 Page Ref: 149
LO: 5.1: Explain the purpose of an industry analysis.
AACSB: Analytical Thinking
2] Terry Washington recently started a new firm in the financial services industry. Prior to
starting his firm, he spent considerable time doing research on the potential of the industry. The
research that Terry was doing is called ________ analysis.
A] industry
B] sector
C] commercial
D] business
E] target market
Answer: A
Diff: 1 Page Ref: 150
LO: 5.1: Explain the purpose of an industry analysis.
AACSB: Reflective Thinking
3] A[n] ________ is a group of firms producing a similar product or service, such as soft drinks,
airlines, or smartphone apps.
A] cluster
B] division
C] sector
D] industry
E] network
Answer: D
Diff: 1 Page Ref: 150
LO: 5.1: Explain the purpose of an industry analysis.
AACSB: Reflective Thinking
1
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