CSM Competitive Analysis & Market Intelligence 2

Question 1

The BCG Growth-Share Matrix classifies business units into four categories. A unit with HIGH market share but LOW growth is called a:

Accepted Answer

Cash Cow

Answer

Cash Cows have dominant market share in slow-growth markets, generating steady cash flow with minimal investment needed.

Question 2

A firm performs a SWOT analysis before entering a new market. Which of the following would be classified as an OPPORTUNITY?

Accepted Answer

Emerging demand for eco-friendly products in the target market

Answer

Opportunities are external, favorable conditions in the environment that a firm can exploit to its advantage.

Question 3

Industry concentration can be measured with the Herfindahl-Hirschman Index (HHI). A very HIGH HHI score indicates:

Accepted Answer

A near-monopoly or highly concentrated market

Answer

A high HHI score means a few firms control most of the market, indicating high concentration and less competitive rivalry.

Question 4

Benchmarking against the best-in-class company outside your industry is specifically called:

Accepted Answer

Generic benchmarking

Answer

Generic benchmarking compares processes against best practices from entirely different industries to find transferable innovations.

Question 5

A first-mover advantage is most sustainable when:

Accepted Answer

The pioneer builds strong customer loyalty and proprietary technology before rivals enter

Answer

First-mover advantages are durable when the pioneer locks in customers through loyalty programs, patents, or proprietary assets before competitors arrive.

(CSM) Certified Strategic Manager Practice Test

(CSM) Certified Strategic Manager Practice Test

CSM Competitive Analysis & Market Intelligence 2