Exam 11: Dealing With Competition

The frontal attack by a market challenger looks for weak spots on the fringe of the opponent's defenses because these are natural targets.

Because the cost of buying higher market share may far exceed its revenue value,a company should consider four factors before pursuing increased market share.These include all of the following EXCEPT ________.

________ competitors try to buy market share rather than earn it;take large risks;invest in overcapacity;and upset industrial equilibrium.

What factors contribute to increasing the bargaining power of suppliers?

A preemptive defense is basically a strategic retreat until resources can be assembled for a more advantageous attack.

Companies that attempt to increase market share by cutting prices more deeply than competitors typically achieve significant gains.

A firm that serves small market segments not being served by bigger firms is known as a ________.

Firms should only ever target weak competitors in order to maximize the return on their competitive investments.

In terms of comparisons with a market leader,whereas the market leader achieves high volume,the market nicher achieves ________.

All of the following are considered market follower strategies EXCEPT ________.

As a market follower,you have been labeled as a counterfeiter.Characterize your label.

A competitor's share of industry sales is known as the firm's ________.

INSEAD professors W.Chan Kim and Renée Mauborgne believe that too many firms engage in "red-ocean thinking"-seeking bloody,head-to-head battles with competitors based largely on incremental improvements in cost,quality,or both.They advocate engaging instead in "blue-ocean thinking." Explain the concept of blue-ocean strategy.

After FedEx watched UPS successfully invade its airborne delivery system,FedEx invested heavily in ground delivery service through a series of acquisitions to challenge UPS on its home turf.This is an example of a ________.

A niche firm that specializes in customizing its products for individual customers is known as a ________.

In 2006,Sara Lee spun off products that accounted for almost 40% of the company's revenues,including its strong Hanes hosiery brand,so it could concentrate on its well-known food brands.In this example,Sara Lee is employing a ________ strategy.

The first step that a market challenger must take in establishing its stance against competitors is to define its strategic objective.

How can a firm with low share of the total market become highly profitable?

Larger package sizes have been shown to increase the amount of product that consumers use at one time.This is an example of increasing sales through increasing the amount of consumption.

Assume that your organization has chosen to pursue a market leader strategy of the flank defense.Describe what such a strategy might be.