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Market Analysis & Trends Flashcards

7 cards from real CCM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Market Analysis & Trends flashcards as text

  1. Which Porter's Five Forces factor would increase the most if a supplier holds a proprietary patent on a critical raw material?

    Answer: Bargaining power of suppliers

    A proprietary patent on a critical input strengthens supplier bargaining power because buyers have no alternative sources.

  2. In market analysis, 'churn rate' is most directly used to assess:

    Answer: The rate at which existing customers stop purchasing

    Churn rate measures the percentage of customers who stop doing business with a company over a given period.

  3. A commercial manager is analyzing a market where two dominant players control 70% of total sales. This market structure is called a(n):

    Answer: Oligopoly

    An oligopoly is characterized by a few large firms dominating the market, often resulting in interdependent pricing strategies.

  4. The Herfindahl-Hirschman Index (HHI) is used in market analysis to measure:

    Answer: Market concentration and competitive intensity

    The HHI is calculated by summing the squares of each firm's market share, producing an index that reflects the degree of market concentration.

  5. A bottom-up market sizing approach begins by:

    Answer: Identifying specific customer segments and multiplying by average revenue per customer

    Bottom-up sizing builds the market estimate from individual unit-level data—customers, accounts, or transactions—rather than from high-level aggregates.

  6. In the context of product life cycle analysis, which market characteristic is most typical of the 'maturity' stage?

    Answer: Slowing growth, intense competition, and price pressure

    The maturity stage features slowing growth as the market saturates, leading to intense price competition and margin compression.

  7. A cross-functional team is identifying risks in a new market entry using a scenario planning process. The primary advantage of this method is:

    Answer: It prepares the organization for multiple plausible futures rather than a single expected outcome

    Scenario planning builds strategic flexibility by exploring a range of plausible futures, each with different assumptions about market drivers.