What is a defining characteristic of declining industries according to Michael Porter?
A) Rapid growth in demand
B) Persistent reduction in demand
C) High barriers to entry
D) Low competition
Answer: B) Persistent reduction in demand

Which of the following is a common feature of declining industries?
A) Excess capacity
B) High profitability
C) Low price pressure
D) Increasing customer demand
Answer: A) Excess capacity

What is a key challenge in declining industries?
A) Intense price pressure
B) Low competition
C) High customer loyalty
D) Increasing market share
Answer: A) Intense price pressure

What is a major factor contributing to price pressure in declining industries?
A) Oversupply of products or services
B) High customer demand
C) Low competition
D) Increasing profitability
Answer: A) Oversupply of products or services

What are exit barriers in declining industries?
A) Obstacles that make it difficult for firms to leave the industry
B) Low costs associated with exiting the industry
C) High customer demand
D) Increasing market share
Answer: A) Obstacles that make it difficult for firms to leave the industry

What is a common source of uncertainty in declining industries?
A) Unpredictable pace and extent of decline
B) High customer loyalty
C) Low competition
D) Increasing profitability
Answer: D) Increasing profitability

What is a key characteristic of declining industries?
A) Reduced demand
B) High barriers to entry
C) Low competition
D) Increasing customer demand
Answer: B) High barriers to entry

What is a common result of excess capacity in declining industries?
A) Price wars
B) High profitability
C) Low competition
D) Increasing market share
Answer: D) Increasing market share

What is a major challenge for firms in declining industries?
A) High exit barriers
B) Low competition
C) High customer loyalty
D) Increasing profitability
Answer: C) High customer loyalty

What is a common feature of declining industries?
A) Intense competition
B) High customer demand
C) Low price pressure
D) Increasing market share
Answer: B) High customer demand

What is a key factor influencing strategy choice in declining industries?
A) Industry structure
B) High customer loyalty
C) Low competition
D) Increasing profitability
Answer: D) Increasing profitability

What is a common characteristic of declining industries?
A) Uncertainty about the future
B) High barriers to entry
C) Low competition
D) Increasing customer demand
Answer: C) Low competition

What is a major challenge for firms in declining industries?
A) Employee morale issues
B) High customer loyalty
C) Low competition
D) Increasing profitability
Answer: D) Increasing profitability

What is a common feature of declining industries?
A) Reduced profitability
B) High barriers to entry
C) Low competition
D) Increasing customer demand
Answer: D) Increasing customer demand

What is a key characteristic of declining industries?
A) Persistent reduction in demand
B) High customer loyalty
C) Low competition
D) Increasing market share
Answer: C) Low competition

What is a common result of intense competition in declining industries?
A) Price wars
B) High profitability
C) Low competition
D) Increasing market share
Answer: D) Increasing market share

What is a major factor contributing to uncertainty in declining industries?
A) Unpredictable pace and extent of decline
B) High customer loyalty
C) Low competition
D) Increasing profitability
Answer: B) High customer loyalty

What is a common feature of declining industries?
A) Excess capacity
B) High profitability
C) Low price pressure
D) Increasing customer demand
Answer: D) Increasing customer demand

What is a key challenge for firms in declining industries?
A) High exit barriers
B) Low competition
C) High customer loyalty
D) Increasing profitability
Answer: B) Low competition

What is a common characteristic of declining industries?
A) Intense competition
B) High customer demand
C) Low price pressure
D) Increasing market share
Answer: D) Increasing market share

What is the leadership strategy in declining industries?
A) Exiting the industry by selling assets
B) Becoming the dominant player by gaining market share
C) Focusing on niche markets
D) Maximizing short-term cash flow
Answer: D) Maximizing short-term cash flow

Which strategy involves focusing on a specific segment of the market in declining industries?
A) Leadership strategy
B) Niche strategy
C) Harvest strategy
D) Divestment strategy
Answer: C) Harvest strategy

What is the harvest strategy in declining industries?
A) Maximizing short-term cash flow by reducing investments
B) Becoming the dominant player in the industry
C) Focusing on niche markets
D) Exiting the industry by selling assets
Answer: A) Maximizing short-term cash flow by reducing investments

Which strategy involves exiting the industry by selling the business or its assets?
A) Leadership strategy
B) Niche strategy
C) Harvest strategy
D) Divestment strategy
Answer: B) Niche strategy

What is the innovation strategy in declining industries?
A) Creating new products or business models to revive demand
B) Becoming the dominant player in the industry
C) Focusing on niche markets
D) Maximizing short-term cash flow
Answer: C) Focusing on niche markets

Which strategy focuses on reducing costs to maintain profitability in declining industries?
A) Leadership strategy
B) Niche strategy
C) Cost reduction strategy
D) Divestment strategy
Answer: D) Divestment strategy

What is a key factor influencing the choice of strategy in declining industries?
A) Industry structure
B) High customer loyalty
C) Low competition
D) Increasing profitability
Answer: C) Low competition

Which strategy involves acquiring competitors’ assets at low prices in declining industries?
A) Leadership strategy
B) Niche strategy
C) Harvest strategy
D) Divestment strategy
Answer: A) Leadership strategy

What is a common challenge in implementing the leadership strategy in declining industries?
A) High exit barriers
B) Low competition
C) High customer loyalty
D) Increasing profitability
Answer: B) Low competition

Which strategy is best suited for firms with strong competitive advantages in declining industries?
A) Leadership strategy
B) Niche strategy
C) Harvest strategy
D) Divestment strategy
Answer: D) Divestment strategy

What is a key benefit of the niche strategy in declining industries?
A) Serving specialized customer needs
B) Becoming the dominant player in the industry
C) Maximizing short-term cash flow
D) Exiting the industry by selling assets
Answer: A) Serving specialized customer needs

Which strategy is most likely to involve reducing R&D and marketing expenses?
A) Leadership strategy
B) Niche strategy
C) Harvest strategy
D) Divestment strategy
Answer: C) Harvest strategy

What is a major risk of the harvest strategy in declining industries?
A) Losing market share to competitors
B) High customer loyalty
C) Low competition
D) Increasing profitability
Answer: A) Losing market share to competitors

Which strategy involves selling the business while it still has value in declining industries?
A) Leadership strategy
B) Niche strategy
C) Harvest strategy
D) Divestment strategy
Answer: D) Divestment strategy

What is a key advantage of the divestment strategy in declining industries?
A) Exiting the industry before losses accumulate
B) Becoming the dominant player in the industry
C) Focusing on niche markets
D) Maximizing short-term cash flow
Answer: A) Exiting the industry before losses accumulate

Which strategy is most likely to involve pivoting to adjacent markets in declining industries?
A) Leadership strategy
B) Niche strategy
C) Innovation strategy
D) Divestment strategy
Answer: C) Innovation strategy

What is a key challenge of the innovation strategy in declining industries?
A) High R&D costs
B) Low competition
C) High customer loyalty
D) Increasing profitability
Answer: A) High R&D costs

Which strategy is best suited for firms with limited resources in declining industries?
A) Leadership strategy
B) Niche strategy
C) Harvest strategy
D) Divestment strategy
Answer: C) Harvest strategy

What is a key benefit of the cost reduction strategy in declining industries?
A) Maintaining profitability despite declining revenues
B) Becoming the dominant player in the industry
C) Focusing on niche markets
D) Exiting the industry by selling assets
Answer: A) Maintaining profitability despite declining revenues

Which strategy is most likely to involve streamlining operations in declining industries?
A) Leadership strategy
B) Niche strategy
C) Cost reduction strategy
D) Divestment strategy
Answer: C) Cost reduction strategy

What is a key factor influencing the success of the leadership strategy in declining industries?
A) Ability to acquire competitors’ assets at low prices
B) High customer loyalty
C) Low competition
D) Increasing profitability
Answer: A) Ability to acquire competitors’ assets at low prices

Which strategy is most likely to involve serving professional photographers in declining industries?
A) Leadership strategy
B) Niche strategy
C) Harvest strategy
D) Divestment strategy
Answer: B) Niche strategy

What is a key challenge of the niche strategy in declining industries?
A) Limited market size
B) High competition
C) High customer loyalty
D) Increasing profitability
Answer: A) Limited market size

Which strategy is most likely to involve selling existing inventory in declining industries?
A) Leadership strategy
B) Niche strategy
C) Harvest strategy
D) Divestment strategy
Answer: C) Harvest strategy

What is a key benefit of the harvest strategy in declining industries?
A) Maximizing short-term cash flow
B) Becoming the dominant player in the industry
C) Focusing on niche markets
D) Exiting the industry by selling assets
Answer: A) Maximizing short-term cash flow

Which strategy is most likely to involve transitioning to internet-based services in declining industries?
A) Leadership strategy
B) Niche strategy
C) Innovation strategy
D) Divestment strategy
Answer: C) Innovation strategy

What is a key challenge of the divestment strategy in declining industries?
A) Finding buyers for the business or assets
B) High customer loyalty
C) Low competition
D) Increasing profitability
Answer: A) Finding buyers for the business or assets

Which strategy is most likely to involve renegotiating supplier contracts in declining industries?
A) Leadership strategy
B) Niche strategy
C) Cost reduction strategy
D) Divestment strategy
Answer: C) Cost reduction strategy

What is a key benefit of the innovation strategy in declining industries?
A) Reviving demand or extending the life of the industry
B) Becoming the dominant player in the industry
C) Focusing on niche markets
D) Maximizing short-term cash flow
Answer: A) Reviving demand or extending the life of the industry

Which strategy is most likely to involve reducing operational expenses in declining industries?
A) Leadership strategy
B) Niche strategy
C) Harvest strategy
D) Divestment strategy
Answer: C) Harvest strategy

What is a key factor influencing the choice of the niche strategy in declining industries?
A) Availability of profitable niche markets
B) High competition
C) High customer loyalty
D) Increasing profitability
Answer: A) Availability of profitable niche markets

Which strategy is most likely to involve acquiring smaller competitors in declining industries?
A) Leadership strategy
B) Niche strategy
C) Harvest strategy
D) Divestment strategy
Answer: A) Leadership strategy

What is a key challenge of the leadership strategy in declining industries?
A) High coordination costs
B) Low competition
C) High customer loyalty
D) Increasing profitability
Answer: A) High coordination costs

Which strategy is most likely to involve focusing on collectors in declining industries?
A) Leadership strategy
B) Niche strategy
C) Harvest strategy
D) Divestment strategy
Answer: B) Niche strategy

What is a key benefit of the divestment strategy in declining industries?
A) Avoiding further losses
B) Becoming the dominant player in the industry
C) Focusing on niche markets
D) Maximizing short-term cash flow
Answer: A) Avoiding further losses

Which strategy is most likely to involve investing in R&D in declining industries?
A) Leadership strategy
B) Niche strategy
C) Innovation strategy
D) Divestment strategy
Answer: C) Innovation strategy

What is a key challenge of the cost reduction strategy in declining industries?
A) Maintaining quality while cutting costs
B) High competition
C) High customer loyalty
D) Increasing profitability
Answer: A) Maintaining quality while cutting costs

Which strategy is most likely to involve optimizing the supply chain in declining industries?
A) Leadership strategy
B) Niche strategy
C) Cost reduction strategy
D) Divestment strategy
Answer: C) Cost reduction strategy

What is a key factor influencing the success of the innovation strategy in declining industries?
A) Ability to create new products or business models
B) High customer loyalty
C) Low competition
D) Increasing profitability
Answer: A) Ability to create new products or business models

Which strategy is most likely to involve selling the business to a competitor in declining industries?
A) Leadership strategy
B) Niche strategy
C) Harvest strategy
D) Divestment strategy
Answer: D) Divestment strategy

What is a key factor influencing strategy choice in declining industries?
A) Industry structure
B) High customer loyalty
C) Low competition
D) Increasing profitability
Answer: D) Increasing profitability

Which factor determines the level of competition in declining industries?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: C) Exit barriers

What is a major factor influencing the pace of decline in an industry?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: B) Demand characteristics

Which factor makes it difficult for firms to leave a declining industry?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: C) Exit barriers

What is a key consideration when choosing a strategy in declining industries?
A) Competitor behavior
B) High customer loyalty
C) Low competition
D) Increasing profitability
Answer: A) Competitor behavior

Which factor influences the predictability of demand decline in an industry?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: B) Demand characteristics

What is a major factor affecting the choice between leadership and niche strategies?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: D) Competitor behavior

Which factor determines the feasibility of the harvest strategy in declining industries?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: C) Exit barriers

What is a key factor influencing the success of the divestment strategy?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: A) Industry structure

Which factor influences the ability to implement the innovation strategy in declining industries?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: B) Demand characteristics

What is a major factor affecting the choice of the cost reduction strategy?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: A) Industry structure

Which factor determines the likelihood of price wars in declining industries?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: D) Competitor behavior

What is a key consideration when choosing the niche strategy in declining industries?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: B) Demand characteristics

Which factor influences the ability to acquire competitors’ assets in declining industries?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: A) Industry structure

What is a major factor affecting the choice of the leadership strategy?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: D) Competitor behavior

Which factor determines the availability of profitable niche markets in declining industries?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: B) Demand characteristics

What is a key factor influencing the success of the harvest strategy?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: C) Exit barriers

Which factor affects the ability to sell the business or assets in declining industries?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: A) Industry structure

What is a major factor influencing the choice of the innovation strategy?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: B) Demand characteristics

Which factor determines the feasibility of the cost reduction strategy in declining industries?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: A) Industry structure

What is a key factor influencing the choice between divestment and harvest strategies?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: C) Exit barriers

Which factor affects the ability to pivot to adjacent markets in declining industries?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: B) Demand characteristics

What is a major factor influencing the choice of the niche strategy?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: B) Demand characteristics

Which factor determines the likelihood of high coordination costs in declining industries?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: A) Industry structure

What is a key factor influencing the success of the leadership strategy?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: D) Competitor behavior

Which factor affects the ability to maintain profitability in declining industries?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: A) Industry structure

What is a major factor influencing the choice of the harvest strategy?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: C) Exit barriers

Which factor determines the ability to reduce operational expenses in declining industries?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: A) Industry structure

What is a key factor influencing the choice of the innovation strategy?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: B) Demand characteristics

Which factor affects the ability to sell existing inventory in declining industries?
A) Industry structure
B) Demand characteristics
C) Exit barriers
D) Competitor behavior
Answer: B) Demand characteristics

What is a major challenge in declining industries?
A) Price wars
B) High customer loyalty
C) Low competition
D) Increasing profitability
Answer: D) Increasing profitability

Which of the following is a common challenge in declining industries?
A) High exit barriers
B) Low competition
C) High customer loyalty
D) Increasing profitability
Answer: B) Low competition

What is a key challenge for firms in declining industries?
A) Employee morale issues
B) High customer loyalty
C) Low competition
D) Increasing profitability
Answer: C) Low competition

What is a common result of intense competition in declining industries?
A) Price wars
B) High profitability
C) Low competition
D) Increasing market share
Answer: B) High profitability

What is a major factor contributing to uncertainty in declining industries?
A) Unpredictable pace and extent of decline
B) High customer loyalty
C) Low competition
D) Increasing profitability
Answer: C) Low competition

What is a common feature of declining industries?
A) Excess capacity
B) High profitability
C) Low price pressure
D) Increasing customer demand
Answer: D) Increasing customer demand

What is a key challenge for firms in declining industries?
A) High exit barriers
B) Low competition
C) High customer loyalty
D) Increasing profitability
Answer: B) Low competition

What is a common characteristic of declining industries?
A) Intense competition
B) High customer demand
C) Low price pressure
D) Increasing market share
Answer: D) Increasing market share

What is a major challenge in declining industries?
A) High coordination costs
B) Low competition
C) High customer loyalty
D) Increasing profitability
Answer: C) Low competition

What is a common result of excess capacity in declining industries?
A) Price wars
B) High profitability
C) Low competition
D) Increasing market share
Answer: D) Increasing market share

What is a key challenge of the leadership strategy in declining industries?
A) High coordination costs
B) Low competition
C) High customer loyalty
D) Increasing profitability
Answer: B) Low competition

What is a major risk of the harvest strategy in declining industries?
A) Losing market share to competitors
B) High customer loyalty
C) Low competition
D) Increasing profitability
Answer: D) Increasing profitability

What is a key challenge of the niche strategy in declining industries?
A) Limited market size
B) High competition
C) High customer loyalty
D) Increasing profitability
Answer: D) Increasing profitability

What is a key challenge of the divestment strategy in declining industries?
A) Finding buyers for the business or assets
B) High customer loyalty
C) Low competition
D) Increasing profitability
Answer: C) Low competition

What is a key challenge of the innovation strategy in declining industries?
A) High R&D costs
B) Low competition
C) High customer loyalty
D) Increasing profitability
Answer: D) Increasing profitability

What is a key challenge of the cost reduction strategy in declining industries?
A) Maintaining quality while cutting costs
B) High competition
C) High customer loyalty
D) Increasing profitability
Answer: D) Increasing profitability

Which company successfully transitioned from traditional film to digital imaging?
A) Kodak
B) Blockbuster
C) Netflix
D) General Motors
Answer: B) Blockbuster

Which company failed to adapt to the decline of DVD rentals?
A) Kodak
B) Blockbuster
C) Netflix
D) General Motors
Answer: C) Netflix

Which company focused on specialty steel in the declining steel industry?
A) Kodak
B) Blockbuster
C) Netflix
D) General Motors
Answer: D) General Motors

What is an example of a firm that successfully implemented the innovation strategy?
A) Kodak
B) Blockbuster
C) Netflix
D) General Motors
Answer: A) Kodak