Market Research & Competitive Analysis Flashcards

Which framework analyzes an industry's competitive intensity using five forces: competitive rivalry, supplier power, buyer power, threat of substitutes, and threat of new entrants?

Answer: Porter's Five Forces model

Michael Porter's Five Forces framework assesses the competitive dynamics of an industry, helping exporters understand profitability potential and competitive pressures in a target market.

What is the primary purpose of analyzing a country's 'revealed comparative advantage' (RCA) index when selecting export markets?

Answer: To identify which products a country exports proportionally more than the world average, indicating competitive strength

The RCA index (Balassa index) compares a country's export share of a product to the world's export share, revealing where a country has demonstrated competitive export strength.

An exporter wants to identify which countries are the fastest-growing importers of its product category. Which trade database would provide the MOST relevant bilateral trade flow data over multiple years?

Answer: UN Comtrade Database

UN Comtrade is the world's largest repository of international trade statistics, providing bilateral trade data by HS code for most countries over multiple years.

In market segmentation for export purposes, 'psychographic segmentation' groups foreign customers based on:

Answer: Values, lifestyles, attitudes, and personality traits

Psychographic segmentation classifies consumers by psychological characteristics—values, interests, opinions, and lifestyle—rather than demographic or behavioral data.

A competitor intelligence analysis reveals a rival exporter is filing numerous patents in a target market. This most likely signals the competitor's intent to:

Answer: Create intellectual property barriers to block competitors from the market

Filing patents in a market establishes intellectual property protection that can block competitors from using similar technologies or designs, creating defensive market barriers.

Which metric best measures the ease with which a U.S. exporter can enforce a commercial contract in a foreign country through the local legal system?

Answer: World Bank Enforcing Contracts indicator from the Doing Business report

The World Bank's Enforcing Contracts indicator measures the time, cost, and procedural complexity of resolving a commercial dispute through local courts.

When analyzing a foreign competitor's strategy, 'benchmarking' involves:

Answer: Comparing your company's processes and performance metrics against industry best practices or competitors

Benchmarking systematically compares a company's products, services, and processes against recognized leaders or competitors to identify performance gaps and improvement opportunities.