Market & Industry Analysis Flashcards
7 cards from real CEA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Market & Industry Analysis flashcards as text
Which analytical tool segments a company's business units based on market growth rate and relative market share?
Answer: BCG Growth-Share Matrix
The BCG (Boston Consulting Group) Matrix plots business units as Stars, Cash Cows, Question Marks, or Dogs based on growth and share.
Which demand forecasting method relies on polling industry experts iteratively until consensus is reached?
Answer: Delphi method
The Delphi method gathers structured expert opinions through multiple survey rounds with feedback until convergence, making it useful when historical data is limited.
A firm operating in an industry with low barriers to entry and exit, even if there are only a few competitors, may still price at competitive levels due to:
Answer: Contestable market theory
Contestable market theory holds that the threat of potential entry disciplines incumbent firms to price near competitive levels even in concentrated markets.
In value chain analysis, 'primary activities' include all of the following EXCEPT:
Answer: Human resource management
Human resource management is a support activity in Porter's value chain, not a primary activity, which include logistics, operations, marketing, sales, and service.
The 'critical mass' concept in market analysis typically refers to:
Answer: The threshold adoption rate needed to sustain a network effect
Critical mass in market analysis refers to the minimum number of users or adopters required for a network effect to become self-sustaining and drive further adoption.
In industry analysis, 'switching costs' primarily affect which of Porter's Five Forces?
Answer: Bargaining power of buyers
High switching costs reduce buyer bargaining power because customers face significant costs to change suppliers, locking them into existing relationships.
An analyst notes that an industry's price-cost margin has narrowed significantly over five years while output has increased. This pattern most suggests:
Answer: Entry of new competitors increasing supply
Narrowing price-cost margins with rising output is consistent with increased competition from new entrants driving prices toward costs.