Exam 18: Creating Competitive Advantage

Refer to the scenario below to answer the following questions. Essential-Beauty is a rapidly growing firm that manufactures women's makeup, perfumes, and nail-care products. The company has established itself as a high-end cosmetic product brand available at most national drug stores. In the past, almost all of the advertising for Essential-Beauty has been in women's fashion magazines. The firm is now launching a new line of skin care products, ranging from facial cleansers to body lotion. These products are designed to be marketed to a broader audience, so the marketing team is exploring the effectiveness of different promotional mixes. -Before deciding to launch the new line of products, Essential-Beauty conducted extensive market research to make sure the products were optimally positioned. A complete marketing plan including mobile advertising, magazine advertising, event sponsorship, and sales promotions was established long before the products themselves were ready for market. In this case, Essential-Beauty was using ________.

Explain how the United States Postal Service has "competitor myopia."

Companies can identify competitors from a(n) ________ point of view by defining competitors as companies that are trying to satisfy the same customer need or build relationships with the same customer group.

Benchmarking involves comparing the firm's products and processes to those of the competitors to identify best practices to improve quality and performance.

Dell produces and delivers PCs of competitive quality at lower costs. The company constantly aims to achieve low production and distribution costs to win a large market share. Dell utilizes a(n) ________ strategy very effectively.

A firm should compete with ________ competitors in order to sharpen its abilities. Succeeding against these competitors often provides greater returns.

A competitive analysis involves first identifying and assessing competitors and then selecting which competitors to attack or avoid.

A market nicher can most likely specialize along all of the following EXCEPT ________.

Destroying a close competitor can actually damage a company's market share in the long run.

The goal of a "blue ocean strategy" is to make competition more relevant.

Lovelies is the leading workout and fitness center for women. The regional chain of gyms has traditionally catered to women forty and older who are interested in strength and cardio-vascular training. Lovelies has recently begun promotions to bring younger women into its gyms. This is an example of how the market leader ________.

Samsung and Apple are open to new ideas, relentlessly pursue new solutions, and work to get new products to market quickly. They serve customers who want state-of-the-art products and services, regardless of the costs in terms of price or inconvenience. Which of the following value disciplines is illustrated from this example?

Companies that pursue a clear strategy will likely perform well. Firms that do not pursue a clear strategy are called ________.

From an industry point of view, Universal Pictures might see its competition as ________.

What is the LEAST relevant question to ask when assessing a firm's main competitor?

Small firms that can't afford a competitive intelligence system often resort to using "in-house" experts to study competitors.

To plan effective marketing strategies, the company must ignore its competitors.

Sears and Holiday Inn encountered difficult times because they did not stand out as the lowest in cost, highest in perceived value, or best in serving some market segment. Both companies are ________.

Discuss customer intimacy. Why is it important? Provide an example of a company that successfully abides by this value discipline.

Explain how a market follower can gain advantage from a market leader.