Trying to strongly differentiate the company's product from those of rivals rather than be content with weak product differentiation
	Over-differentiating so that the features and attributes incorporated exceed buyer needs and requirements
	Trying to charge too high a price premium for the differentiating features
	Differentiating on features or attributes that rivals can easily copy
	Overspending on efforts to differentiate the company's product offering

	develop core competencies and maybe a distinctive competence over rivals and that are instrumental in helping it deliver attractive value to customers or else be more cost efficient in how it performs value chain activities.
	have more core competencies than rivals.
	have at least three distinctive competencies.
	have competencies that allow it to produce the highest quality product in the industry.
	have more competitive assets than competitive liabilities.

	100%.
	1.0.
	10.
	100.
	None of the above.

	cutting its price to levels significantly below the prices of rivals.
	either using its low-cost edge to underprice competitors and attract price sensitive buyers in large enough numbers to increase total profits or refraining from price-cutting and using the low-cost advantage to earn a bigger profit margin on each unit sold.
	going all out to use its cost advantage to capture a dominant share of the market.
	spending heavily on advertising to promote its cost advantage and the fact that it charges the lowest prices in the industry—it can then use this reputation for low prices to build very strong customer loyalty, gain repeat sales year after year, and earn sustained profits over the long-term.
	outproducing rivals and thus having more units available to sell.

	whether the profits of suppliers are relatively high or low.
	the number of suppliers that each seller/industry member purchases from on average.
	how aggressively rival industry members are trying to differentiate their products.
	whether suppliers can exercise sufficient bargaining power to influence the terms and conditions of supply in their favor and the extent of seller-supplier collaboration in the industry.
	whether the prices of the items being furnished by the suppliers are rising or falling.

	identifying whether the company's value chain is cost effective vis-à-vis the value chains of rivals.
	helping strategy-makers benchmark the company's resource strengths against industry key success factors.
	enabling a company to assess its overall competitive position relative to its key rivals.
	revealing whether a company's market share, measures of profitability, and sales compare favorably or unfavorably vis-à-vis key competitors.
	assisting strategy-makers in crafting a strategy that is well-matched to the company's resources and capabilities, its market opportunities, and the external threats to its future well-being.

	How many companies in the industry have good track records for revenue growth and profitability?
	What strategic moves are rivals likely to make next?
	What are the key factors for future competitive success?
	Does the outlook for the industry present the company with sufficiently attractive prospects for profitability?
	What forces are driving changes in the industry, and what impact will these changes have on competitive intensity and industry profitability?

	Market size and growth rate, the geographic scope of competitive rivalry, and demand-supply conditions
	The extent to which economies of scale and learning/experience curve effects are present
	How many strategic groups the industry has and which ones are most profitable and least profitable
	The number and sizes of buyers, the number of rivals, and the pace of product innovation
	The prevalence of vertical integration and the pace of technological change

	the industry and competitive arena in which the company operates.
	general economic conditions plus the factors driving change in the markets where a company operates.
	all the relevant forces and factors outside a company's boundaries—general economic conditions, population demographics, societal values and lifestyles, technological factors, governmental legislation and regulation, and closer to home, the industry and competitive arena in which it operates.
	the competitive market environment that exists between a company and its competitors.
	the dominant economic features of a company's industry.

	build market share, maintain market share, and slowly surrender market share.
	offensive strategies and defensive strategies.
	low-cost provider, broad differentiation, best-cost provider, focused low-cost, and focused differentiation.
	low-cost/low price strategies, high-quality/high price strategies, and medium quality/medium price strategies.
	price leader strategies, price follower strategies, technology leader strategies, first-mover strategies, offensive strategies, and defensive strategies.

→	when demand for the product is growing slowly, buyers have low switching costs, and the actions of any one company to attract more customers and boost market share have strong direct impact on their rivals.
	when the products/services of rival sellers are strongly differentiated and buyer demand is strong.
	when rivals are relatively content with their market position.
	when there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members.
	the smaller the number of firms in the industry and the more unequal their market shares.

	its percentage share of total industry revenues.
	the importance of each competitive strength measure in building a sustainable competitive advantage.
	its perceived importance in determining a company's competitive success in the marketplace.
	its percentage share of total industry profits.
	what it takes to provide better analytical balance between the companies with high ratings and the companies with low ratings and thus get the sum of the weights to add up to 1.0.

	how they go about building a brand name image that buyers trust and whether they are a risk-taker or risk-avoider.
	the different ways that companies try to cope with the five competitive forces.
→	whether a company's market target is broad or narrow and whether the company is pursuing a competitive advantage linked to low cost or differentiation.
	the kinds of actions companies take to improve their competitive assets and reduce their competitive liabilities.
	the relative emphasis they place on offensive versus defensive strategies.

	it is the acknowledged market share leader.
	it is the industry's acknowledged technology leader.
	it has greater financial resources than its rivals.
	it has a well-known and well-regarded brand name, prefers offensive strategies to defensive strategies, and has a strong balance sheet.
	it has some type of edge over rivals in attracting customers and coping with competitive forces.

	it has more core competencies than close rivals.
	its strategy is built around at least two of the industry's key success factors.
	the company is achieving its financial and strategic objectives and whether it is an above-average industry performer.
	it is customarily a first-mover in introducing new or improved products (a good sign) or a late-mover (a bad sign).
	it is subject to weaker competitive forces and pressures than close rivals (a good sign) or stronger competitive forces and pressures (a bad sign).

	Integrate backward into the business of high-cost suppliers in an effort to reduce the costs of the items being purchased.
	Negotiate more favorable prices with suppliers.
	Collaborate closely with suppliers to identify mutual cost-saving opportunities.
	Switch to lower priced substitute inputs.
	Persuade forward channel allies to implement best practices.

	The key functional strategies (R&D, supply chain management, production, sales and marketing, HR, and finance) a company is employing
	Management's planned, proactive moves to outcompete rivals (via better product design, improved quality or service, wider product lines, and so on)
	The company's mission, strategic objectives, and financial objectives
	Moves to respond and react to changing conditions in the macro-environment and in industry and competitive conditions
	The strategic role of its collaborative partnerships and strategic alliances with others

	building a brand name image that buyers trust.
	delivering superior value to buyers and building competencies and resource strengths in performing value chain activities that rivals cannot readily match.
	achieving lower costs than rivals and becoming the industry's sales and market share leader.
	finding effective and efficient ways to strengthen the company's competitive assets and to reduce its competitive liabilities.
	getting in the best strategic group and dominating it.

	Rapid market growth
	Sizable capital requirements and an array of regulatory requirements
	Strong buyer loyalty to existing brands
	Sizable economies of scale in production
	Difficulties in gaining access to technological know-how

	A salad as a substitute for French fries
	Wireless phones as a substitute for wired telephones
	Coca-Cola as a substitute for Pepsi
	Snowboards as a substitute for snow skis
	Video-on-demand services from a cable TV company as a substitute for going to the movies