Answer the following questions in the best and most comprehensive way possible. This will help you review
and understand the concepts discussed during this class, and make your learning experience a better one.
Why do price wars often erupt in certain industries (such as the automobile industry), but less frequently in
other industries (such as the diamond industry)? What can a firm do to discourage price wars or be better
prepared for price wars?
Compare and contrast the five forces affecting the airline industry, the fast food industry, the beauty products
industry, and the pharmaceutical industry (1) on a worldwide basis and (2) in your country. Which industry
holds more promise for earning higher returns? Why?
As a manager, is it ethical to threaten your suppliers? Your buyers?
Pick any pair of rivals in the same industry (such as Boeing/Airbus and Apple/Samsung), and explain why one
outperforms another.
Since managers read information posted on competitors’ websites, is it ethical to provide false information on
resources and capabilities on corporate websites? Do the benefits outweigh the costs?
Sample Solution