Exam 11: Competitive Dynamics

An alternate way to increase sales volume is to increase the usage rates among users by entering new market segments.

Characterize the four broad strategies often employed by market followers to meet their competitors.

Campbell Soups is a newly established company that specializes in preparing healthy but tasty food for children under the age of 5. It is incurring huge productions costs, nonexistent profits, and slow sales growth. The company is in the ________ phase of its life cycle.

When "petroleum" companies such as BP sought to recast themselves as "energy" companies, increasing their research into the oil, coal, nuclear, hydroelectric, and chemical industries, these companies were employing a ________ strategy.

Describe frontal attack as a general market-challenger attack strategy.

Explain how luxury brands can benefit during an economic recession from having lower-priced brands or sub-brands in their portfolio.

During the maturity stage of a product life cycle, profits stabilize or decline because of increased competition.

As a market follower, the ________ may choose to sell to different markets, but often it grows into a future challenger.

An alternative to being a market follower in a large market is to be a leader in a small market. This type of competitor is called a ________.

If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ strategy.

If your company, which is a market follower, was labeled as an imitator, what would its primary strategies for meeting competition be?

When a firm looks for new users in groups that might use the product but do not, the firm is using the ________ strategy.

In 2006, Sara Lee spun off products that accounted for a large percentage 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.

As a market-follower strategy, an imitator duplicates the leader's product and packages and sells it on the black market or through disreputable dealers.

As a market-follower strategy, an adapter takes the leader's products and adapts or improves them.

Selective price cuts, intense promotional blitzes, and occasional legal action are commonplace in the strategic design of a(n)________.

What is fashion?

Amani, a company that manufactures cloth for suits, strives to be equal to Armani in product design, brand name, and product packaging. This is an example of ________.

A market-penetration strategy is one where a company searches for new customers in a group that has never used a product before.

The market leader should look for new customers or more usage from existing customers.