21.Character of the rivalry is a measure of the intensity of competitive behavior between companies in an industry.
22.The threat of substitute products is a measure of the ease with which customers can find substitutes for an industry’s goods or services.
23.The three positioning strategies are cost leadership, differentiation, and niche.
24.Bargaining power of buyers tends to be higher when a company sells a popular product to multiple buyers than when a company is dependent on just a few high-volume buyers.
25.Differentiation is the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can, so that the firm can offer the product or service at the lowest price in the industry.
26.The four kinds of adaptive strategies are defenders, analyzers, prospectors, and reactors.
27.Reactors follow the consistent strategy of anticipating and reacting to potential external opportunities and threats prior to their occurrence.
28.Most companies compete directly with all the firms in their industry.
29.The two factors that determine the extent to which firms will be in direct competition with each other are market commonality and resource similarity.
30.The greater the market commonality, the less intense the direct competition between two companies.