Exam 18: Creating Competitive Advantage

Kodak's film business didn't lose out to direct competitor Fujifilm; it lost out to Sony, Canon, and other digital camera makers, along with a host of digital image developers and online image sharing services. This is an example of ________.

As small companies achieve success, they inevitably move toward more ________ marketing. They adopt more-developed marketing tools and adhere to them closely.

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

Profitability increases as a business gains share relative to competitors in its ________.

An advantage of a competitor-centered company is that it ends up simply matching or extending industry practices rather than seeking innovative new ways to create more value for customers.

The market subsegment that a company exclusively caters to may dry up, or it might grow to the point that it attracts larger competitors. This is why such companies practice ________.

If a company's aim is to make its own and competing products obsolete and serve customers who want state-of-the-art products and services, it is using a value discipline called ________.

A company's objectives indicate its satisfaction with its current situation and ________.

A good competitor plays by its own rules at the expense of the industry as a whole.

A company that pursues ________ will react much more strongly to a competitor's cost reducing manufacturing breakthrough than to the same competitor's advertising increase.

Companies can identify competitors from one of two points of view: ________.

Which of the following are examples of close competitors?

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

The existence of competitors in a market may cause a decrease in total demand.

From a(n) ________ point of view, Pepsi might see its competition as Coca-Cola, Dr Pepper, 7UP, and the makers of other soft drink brands. From a(n) ________ point of view, however, the customer really wants "thirst quenching."

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

Which is NOT one of the four orientations a company may have?

When a company provides superior value by leading its industry in price and convenience, it has obtained ________.

Customers see competitive advantages as customer advantages.

An industry often contains "good" competitors and "bad" competitors. Define each term and discuss scenarios with both "good" and "bad" competitors. How might "good" competitors choose to react to "bad" competition?