Industry Analysis Before Business Entry: 100+ MCQs on Strategy, Market Entry & Competitive Structure
Q1. What must precede idea execution in strategic business planning?
A. Branding strategy
B. Industry diagnosis
C. Market promotion
D. Financial projection
Answer: B. Industry diagnosis
Q2. Competitive density primarily refers to:
A. Market demand volume
B. Number of competitors in the industry
C. Customer loyalty levels
D. Product quality variance
Answer: B. Number of competitors in the industry
Q3. A highly crowded market structurally indicates:
A. Innovation opportunity
B. Risk concentration
C. Premium positioning
D. Monopoly advantage
Answer: B. Risk concentration
Q4. High competition combined with low differentiation results in:
A. Brand dominance
B. Price wars
C. Premium pricing
D. Market stability
Answer: B. Price wars
Q5. Which factor most directly erodes profitability in saturated markets?
A. Brand equity
B. Entry barriers
C. Price competition
D. Customer loyalty
Answer: C. Price competition
Q6. Which market structure supports sustainable profits?
A. Many players, low entry barriers
B. Few players, strong entry barriers
C. High rivalry, low differentiation
D. Price-based competition
Answer: B. Few players, strong entry barriers
Q7. Low customer switching cost leads to:
A. Customer lock-in
B. Demand stability
C. High churn risk
D. Brand loyalty
Answer: C. High churn risk
Q8. Which condition indicates high failure probability for new entrants?
A. Differentiated products
B. Premium pricing
C. No entry barriers
D. Strong brand loyalty
Answer: C. No entry barriers
Q9. Which market dynamic destroys scalability?
A. High margins
B. Price-based competition
C. Entry barriers
D. Product innovation
Answer: B. Price-based competition
Q10. Industry structure primarily determines:
A. Marketing creativity
B. Business survival probability
C. Founder passion
D. Operational efficiency
Answer: B. Business survival probability
Q11. Which factor protects long-term profitability?
A. Open access distribution
B. Strong entry barriers
C. Low differentiation
D. High competitor count
Answer: B. Strong entry barriers
Q12. A market with 200 players and identical products leads to:
A. Premium positioning
B. Margin stability
C. Survival competition
D. Brand leadership
Answer: C. Survival competition
Q13. Which is a structural market risk indicator?
A. High innovation
B. Low entry barriers
C. Brand loyalty
D. Product uniqueness
Answer: B. Low entry barriers
Q14. Strategic entry logic focuses on:
A. Emotional opportunity
B. Structural profitability
C. Product excitement
D. Trend following
Answer: B. Structural profitability
Q15. High supplier power causes:
A. Cost stability
B. Dependency risk
C. Profit growth
D. Market control
Answer: B. Dependency risk
Q16. Distribution control provides:
A. Imitation advantage
B. Competitive advantage
C. Entry risk
D. Margin erosion
Answer: B. Competitive advantage
Q17. Red-ocean markets are characterized by:
A. Low rivalry
B. High differentiation
C. Price wars
D. Innovation monopoly
Answer: C. Price wars
Q18. What transforms an idea into a viable business?
A. Passion
B. Industry structure
C. Advertising
D. Branding
Answer: B. Industry structure
Q19. A structurally attractive industry typically shows:
A. High rivalry
B. Entry protection
C. Low margins
D. Price competition
Answer: B. Entry protection
Q20. Which logic reflects strategic thinking?
A. “Good idea ensures success”
B. “Industry structure decides survival”
C. “Marketing creates profit”
D. “Scale guarantees dominance”
Answer: B. “Industry structure decides survival”
Q21. High competitive density causes:
A. Market protection
B. Risk concentration
C. Brand monopolies
D. Entry security
Answer: B. Risk concentration
Q22. Which condition enables premium pricing?
A. Product sameness
B. Differentiation
C. Price competition
D. High rivalry
Answer: B. Differentiation
Q23. Structural market analysis is part of:
A. Operational management
B. Strategic management
C. HR management
D. Financial accounting
Answer: B. Strategic management
Q24. Opportunity screening primarily evaluates:
A. Emotional motivation
B. Market structure
C. Founder background
D. Funding sources
Answer: B. Market structure
Q25. Which factor reduces imitation risk?
A. Open markets
B. Entry barriers
C. Price wars
D. Low differentiation
Answer: B. Entry barriers
Q26. Survival competition means:
A. Innovation race
B. Brand leadership
C. Competing for existence
D. Market monopoly
Answer: C. Competing for existence
Q27. Scalability is weakened by:
A. Entry barriers
B. Price wars
C. Differentiation
D. Market protection
Answer: B. Price wars
Q28. Which market attracts long-term investors?
A. High rivalry markets
B. Low-margin markets
C. Structurally protected markets
D. Crowded markets
Answer: C. Structurally protected markets
Q29. Market diagnosis helps in:
A. Emotional validation
B. Risk filtering
C. Branding design
D. Promotion planning
Answer: B. Risk filtering
Q30. Sustainable business models depend on:
A. Advertising spend
B. Structural advantage
C. Trend adoption
D. Price cutting
Answer: B. Structural advantage
Q31. Which factor most strongly predicts long-term industry profitability?
A. Advertising intensity
B. Entry barriers
C. Market size
D. Founder experience
Answer: B. Entry barriers
Q32. Market overcrowding primarily leads to:
A. Brand monopolies
B. Innovation leadership
C. Margin dilution
D. Demand expansion
Answer: C. Margin dilution
Q33. Which strategic mistake do new entrepreneurs commonly make?
A. Over-analyzing markets
B. Ignoring industry structure
C. Overestimating capital
D. Ignoring branding
Answer: B. Ignoring industry structure
Q34. Structural market attractiveness depends on:
A. Product aesthetics
B. Competitive forces
C. Advertising creativity
D. Social media presence
Answer: B. Competitive forces
Q35. Which factor increases survival probability?
A. Product similarity
B. Price wars
C. Market protection
D. Low differentiation
Answer: C. Market protection
Q36. High rivalry markets typically show:
A. Stable margins
B. Price volatility
C. Premium pricing
D. Brand loyalty
Answer: B. Price volatility
Q37. Which is a symptom of structural weakness?
A. Differentiation
B. Entry barriers
C. Price-based competition
D. Brand equity
Answer: C. Price-based competition
Q38. Opportunity screening primarily prevents:
A. Innovation
B. Risk entry
C. Market research
D. Branding
Answer: B. Risk entry
Q39. Industry diagnosis focuses on:
A. Internal strengths
B. External structure
C. Team capability
D. Funding access
Answer: B. External structure
Q40. Strategic entry logic is based on:
A. Emotional confidence
B. Structural advantage
C. Trend imitation
D. Market hype
Answer: B. Structural advantage
Q41. Which condition creates high imitation risk?
A. Strong IP laws
B. Low entry barriers
C. Product patents
D. Brand loyalty
Answer: B. Low entry barriers
Q42. A fragmented industry is defined by:
A. Few dominant firms
B. Many small competitors
C. Monopoly control
D. High integration
Answer: B. Many small competitors
Q43. Which industry type supports premium pricing?
A. Commoditized
B. Differentiated
C. Saturated
D. Fragmented
Answer: B. Differentiated
Q44. Market sustainability is driven by:
A. Marketing spend
B. Structural defensibility
C. Price leadership
D. Cost cutting
Answer: B. Structural defensibility
Q45. High customer churn indicates:
A. Market stability
B. Weak switching cost
C. Brand loyalty
D. Premium positioning
Answer: B. Weak switching cost
Q46. Which factor enables pricing power?
A. Competition
B. Differentiation
C. Market crowding
D. Low entry barriers
Answer: B. Differentiation
Q47. Which market structure is least scalable?
A. Protected market
B. Premium niche
C. Price-war market
D. Differentiated market
Answer: C. Price-war market
Q48. Industry structure analysis is part of:
A. Tactical planning
B. Strategic planning
C. Operational planning
D. Resource planning
Answer: B. Strategic planning
Q49. Which factor drives structural risk?
A. Innovation
B. Overcrowding
C. Branding
D. Differentiation
Answer: B. Overcrowding
Q50. Market entry should be guided by:
A. Founder passion
B. Structural logic
C. Trend following
D. Peer imitation
Answer: B. Structural logic
Q51. Which environment increases failure density?
A. High margins
B. Market crowding
C. Product uniqueness
D. Entry barriers
Answer: B. Market crowding
Q52. A commoditized market is characterized by:
A. Product uniqueness
B. Brand loyalty
C. Price competition
D. Market protection
Answer: C. Price competition
Q53. Structural profit pools exist in:
A. Crowded industries
B. Differentiated industries
C. Saturated markets
D. Price-war markets
Answer: B. Differentiated industries
Q54. Which market encourages innovation leadership?
A. Protected niche
B. Crowded market
C. Price-war market
D. Commoditized market
Answer: A. Protected niche
Q55. Which condition attracts quality investment capital?
A. Price wars
B. Structural stability
C. Market saturation
D. High rivalry
Answer: B. Structural stability
Q56. Industry analysis helps avoid:
A. Innovation
B. Structural traps
C. Market research
D. Branding
Answer: B. Structural traps
Q57. Competitive advantage is sustained through:
A. Advertising
B. Differentiation + entry barriers
C. Price cutting
D. Expansion
Answer: B. Differentiation + entry barriers
Q58. Structural protection primarily ensures:
A. Market access
B. Profit sustainability
C. Brand recall
D. Customer reach
Answer: B. Profit sustainability
Q59. Which is a high-risk entry signal?
A. Premium pricing
B. Market crowding
C. Differentiation
D. High margins
Answer: B. Market crowding
Q60. Which market type leads to burnout entrepreneurship?
A. Protected market
B. Niche market
C. Price-war market
D. Differentiated market
Answer: C. Price-war market
Q61. Strategic filtering helps in:
A. Idea rejection
B. Risk reduction
C. Branding
D. Promotion
Answer: B. Risk reduction
Q62. Which factor limits long-term growth?
A. Market protection
B. Price competition
C. Differentiation
D. Innovation
Answer: B. Price competition
Q63. Which market supports brand leadership?
A. Commoditized
B. Differentiated
C. Crowded
D. Saturated
Answer: B. Differentiated
Q64. Entry logic must prioritize:
A. Popularity
B. Profitability
C. Virality
D. Visibility
Answer: B. Profitability
Q65. Which is a structural success indicator?
A. Brand hype
B. Entry protection
C. Market noise
D. Trend adoption
Answer: B. Entry protection
Q66. Which factor reduces competitive pressure?
A. Differentiation
B. Market crowding
C. Low switching cost
D. Price wars
Answer: A. Differentiation
Q67. Which market condition weakens brand power?
A. Premium pricing
B. Product sameness
C. Differentiation
D. Entry barriers
Answer: B. Product sameness
Q68. Structural defensibility comes from:
A. Promotion
B. Market barriers
C. Branding
D. Expansion
Answer: B. Market barriers
Q69. Strategic sustainability depends on:
A. Market structure
B. Advertising budget
C. Team size
D. Office scale
Answer: A. Market structure
Q70. Which market encourages long-term planning?
A. Price-war market
B. Protected market
C. Saturated market
D. Crowded market
Answer: B. Protected market
Q71. Market diagnosis primarily supports:
A. Emotional confidence
B. Strategic clarity
C. Promotion planning
D. Branding strategy
Answer: B. Strategic clarity
Q72. Which is the biggest threat in saturated markets?
A. Innovation
B. Margin erosion
C. Brand building
D. Customer growth
Answer: B. Margin erosion
Q73. Structural market advantage creates:
A. Competitive chaos
B. Strategic stability
C. Market noise
D. Operational stress
Answer: B. Strategic stability
Q74. Which market is most defensible?
A. Price-driven
B. Differentiated + protected
C. Saturated
D. Fragmented
Answer: B. Differentiated + protected
Q75. Which factor supports monopoly-like advantages?
A. Price competition
B. Entry barriers
C. Market crowding
D. Product sameness
Answer: B. Entry barriers
Q76. Competitive density increases:
A. Sustainability
B. Failure probability
C. Brand equity
D. Market stability
Answer: B. Failure probability
Q77. Which market supports premium brand creation?
A. Commoditized
B. Differentiated
C. Saturated
D. Crowded
Answer: B. Differentiated
Q78. Structural analysis belongs to:
A. Finance discipline
B. Strategy discipline
C. HR discipline
D. Marketing discipline
Answer: B. Strategy discipline
Q79. Which condition increases business mortality?
A. Market protection
B. Market crowding
C. Differentiation
D. Entry barriers
Answer: B. Market crowding
Q80. Which factor ensures strategic scalability?
A. Structural protection
B. Price wars
C. Saturation
D. Commoditization
Answer: A. Structural protection
Q81. Which market favors long-term capital formation?
A. Price-war market
B. Protected market
C. Crowded market
D. Saturated market
Answer: B. Protected market
Q82. Entry decision quality depends on:
A. Founder confidence
B. Industry structure
C. Marketing plan
D. Advertising spend
Answer: B. Industry structure
Q83. Which logic defines strategic entrepreneurship?
A. Idea-first logic
B. Structure-first logic
C. Trend-first logic
D. Funding-first logic
Answer: B. Structure-first logic
Q84. Which market creates survival stress?
A. Premium niche
B. Price-war market
C. Protected niche
D. Differentiated market
Answer: B. Price-war market
Q85. Structural analysis reduces:
A. Opportunity
B. Uncertainty
C. Innovation
D. Creativity
Answer: B. Uncertainty
Q86. Which factor increases competitive advantage longevity?
A. Price leadership
B. Entry barriers
C. Market crowding
D. Low differentiation
Answer: B. Entry barriers
Q87. Market overcrowding weakens:
A. Risk exposure
B. Profit sustainability
C. Entry cost
D. Innovation
Answer: B. Profit sustainability
Q88. Which market is best for strategic investment?
A. Fragmented market
B. Protected market
C. Crowded market
D. Saturated market
Answer: B. Protected market
Q89. Structural logic transforms entrepreneurship into:
A. Emotional activity
B. Strategic activity
C. Social activity
D. Creative activity
Answer: B. Strategic activity
Q90. Which market supports sustainable scaling?
A. Price-war market
B. Differentiated + protected
C. Saturated market
D. Crowded market
Answer: B. Differentiated + protected
Q91. Industry diagnosis mainly improves:
A. Branding
B. Decision quality
C. Promotion
D. Advertising
Answer: B. Decision quality
Q92. Structural market analysis prevents:
A. Innovation failure
B. Structural failure
C. Branding failure
D. Marketing failure
Answer: B. Structural failure
Q93. Which market ensures pricing power?
A. Commoditized
B. Differentiated
C. Saturated
D. Crowded
Answer: B. Differentiated
Q94. Strategic markets are defined by:
A. Low competition
B. Structural protection
C. High advertising
D. Fast trends
Answer: B. Structural protection
Q95. Which factor stabilizes competition?
A. Market barriers
B. Price wars
C. Crowding
D. Commoditization
Answer: A. Market barriers
Q96. Which condition ensures long-term viability?
A. Trend following
B. Structural defensibility
C. Viral growth
D. Aggressive pricing
Answer: B. Structural defensibility
Q97. Which market discourages innovation?
A. Protected market
B. Price-war market
C. Differentiated market
D. Premium niche
Answer: B. Price-war market
Q98. Which logic defines intelligent market entry?
A. Emotion logic
B. Structure logic
C. Hype logic
D. Speed logic
Answer: B. Structure logic
Q99. Market diagnosis improves:
A. Marketing creativity
B. Strategic precision
C. Brand recall
D. Customer reach
Answer: B. Strategic precision
Q100. Business survival is primarily determined by:
A. Idea quality
B. Industry structure
C. Marketing spend
D. Team size
Answer: B. Industry structure
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