Industry and Competition: Understanding the Business Landscape, Quizzes of Public Policy

Download Industry and Competition: Understanding the Business Landscape and more Quizzes Public Policy in PDF only on Docsity! TERM 1 Industry DEFINITION 1 a set of players that sell more or less the same thing. TERM 2 Player DEFINITION 2 could refer to an entire firm or to a division of a firm. Examples of entire firm: Coca - Cola Examples of divisions of the firm: Marathon a "player" in the petroleum industry as a division of USX (US Steele) TERM 3 Systems to classify firms into one or more industries DEFINITION 3 Standard Industrial Classification (SIC) North American Industrial Classification System (NAICS) TERM 4 Substitutability approach to identify industries DEFINITION 4 The idea here is that firms in the same industry are likely to demonstrate demand-side substitutability or supply-side substitutability or both. TERM 5 Demand-side substitutability DEFINITION 5 Refers to the possibility of customers switching between suppliers. Example: a buyer of a retail checking account could buy from PNC, or Citibank, or a large number of other banks. TERM 6 Supply-side substitutability DEFINITION 6 Refers the similarity of technologies used by the producer. Example: Campbell's is a firm with lots of knowledge and experience turning tomatoes into prepared food. I don't think they make ketchup. Heinz does. Customers looking for ketchup won't find it by Campbell's. By the demand side definition Heinz is "in" the ketchup industry and Campbell's is not. Does Campbell's have the technology to make ketchup? If they did, then under supply- side definition, we would consider both firms in the same industry TERM 7 Rivals DEFINITION 7 Are a special type of competitor, namely, those competitors that sell what you sell. Rivals may "look" different depending on how the industry is defined. Rivals could be entire firms or divisions of firms. TERM 8 Benefits of focus DEFINITION 8 Doing one business exceedingly well. TERM 9 Diversified DEFINITION 9 Firms that are in more than one business area. TERM 10 Focused DEFINITION 10 Firms in one business.