Question 1

A competitive action is a strategic or tactical action taken by a firm to gain or defend a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 2

Quality is

Accepted Answer

A)  meeting or exceeding customer expectations in the goods and/or services offered. 
B)  only a major factor in the production of luxury goods, such as BMW cars. 
C)  an assured way to gain competitive advantage. 
D)  a viable trade-off with product cost in gaining a competitive advantage. 
A)  meeting or exceeding customer expectations in the goods and/or services offered. 
B)  only a major factor in the production of luxury goods, such as BMW cars. 
C)  an assured way to gain competitive advantage. 
D)  a viable trade-off with product cost in gaining a competitive advantage.

Question 3

Lobelia's Nursery and Garden Resource Center has long provided high quality, typical types of seasonal bedding plants to customers in the Mobile, Alabama, metropolitan area. It has traditionally competed with the other plant nurseries within a 50-mile radius of Mobile. Recently, Lobelia has opened a branch in Fairfax, Virginia. Lobelia's research shows that most Fairfax nurseries have only one location. Lobelia can expect the local Fairfax nurseries to

Accepted Answer

A)  be unmotivated to respond because their market position is not threatened by a new competitor from out-of-town. 
B)  respond with fierce attacks because of resource dissimilarity. 
C)  respond aggressively because of high market dependence. 
D)  take no competitive response because of the lack of mutual interdependence among the nurseries. 
A)  be unmotivated to respond because their market position is not threatened by a new competitor from out-of-town. 
B)  respond with fierce attacks because of resource dissimilarity. 
C)  respond aggressively because of high market dependence. 
D)  take no competitive response because of the lack of mutual interdependence among the nurseries.

Question 4

Two firms that have similar resources, but do not share markets would not be direct and mutually acknowledged competitors.

Accepted Answer

A) True 
 B)False

Question 5

Competitors are more likely to respond to competitive actions that are taken by

Accepted Answer

A)  differentiators. 
B)  larger companies. 
C)  first movers. 
D)  market leaders. 
A)  differentiators. 
B)  larger companies. 
C)  first movers. 
D)  market leaders.

Question 6

Both ____ and ____ affect the awareness and motivation of a firm to undertake actions and responses.

Accepted Answer

A)  first-mover advantages, corporate size 
B)  market commonality, resource similarity 
C)  management capabilities, competitive analysis 
D)  speed of management decisions, management actions 
A)  first-mover advantages, corporate size 
B)  market commonality, resource similarity 
C)  management capabilities, competitive analysis 
D)  speed of management decisions, management actions

Question 7

Kodak has recently entered the inkjet printer market. While this is an established market, Kodak's use of a new ink technology makes them a first mover.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is FALSE?

Accepted Answer

A)  First movers tend to take higher risks than second and later movers. 
B)  First movers tend to have significantly higher revenues than second movers. 
C)  First movers have lower survival rates than second and late movers. 
D)  First movers tend to have more organizational slack than later movers. 
A)  First movers tend to take higher risks than second and later movers. 
B)  First movers tend to have significantly higher revenues than second movers. 
C)  First movers have lower survival rates than second and late movers. 
D)  First movers tend to have more organizational slack than later movers.

Question 9

Competitive rivalry has the most effect on the firm's ____ strategies than the firm's other strategies.

Accepted Answer

A)  business-level 
B)  corporate-level 
C)  acquisition 
D)  international 
A)  business-level 
B)  corporate-level 
C)  acquisition 
D)  international

Question 10

The more dependent a firm is on its market, the more aggressively it will defend it from another competitor.

Accepted Answer

A) True 
 B)False

Question 11

Ninety percent of Wm. Wrigley Company's total revenue comes from chewing gum. This is an example of

Accepted Answer

A)  market commonality. 
B)  standard-cycle markets. 
C)  economies of scale. 
D)  market dependence. 
A)  market commonality. 
B)  standard-cycle markets. 
C)  economies of scale. 
D)  market dependence.

Question 12

Define slow-cycle, fast-cycle and standard cycle markets.

Accepted Answer

In slow-cycle markets, the firm's compet

Question 13

A firm can expect that every launch of a successful new product will be followed by a counterattack by competitors, even in a slow-cycle market.

Accepted Answer

A) True 
 B)False

Question 14

HP and Dell are mutually interdependent organizations.

Accepted Answer

A) True 
 B)False

Question 15

An organization with high profitability, such as Toyota, will be able to develop high organizational slack.

Accepted Answer

A) True 
 B)False

Question 16

A firm that is LEAST likely to launch competitive actions is one that has

Accepted Answer

A)  organizational slack. 
B)  advanced research and development. 
C)  recently improved the quality of its products. 
D)  large size. 
A)  organizational slack. 
B)  advanced research and development. 
C)  recently improved the quality of its products. 
D)  large size.

Question 17

Product quality is a universal theme and is a necessary, but not a sufficient, condition for competitive success.

Accepted Answer

A) True 
 B)False

Question 18

Netflix pioneered the online movie rental business. For eight years, Netflix experienced rapid growth. Blockbuster, the established leader in the retail rental portion of the market, eventually launched their own online rental program. All of the following increased the likelihood of a response by Blockbuster EXCEPT

Accepted Answer

A)  the strategic actions initiated by Netflix threatened Blockbusters core business. 
B)  the growing size of Netflix increased its likelihood of initiating a first-mover attack. 
C)  Blockbuster's dependence on the rental market as the primary source for its revenues. 
D)  Netflix's reputation as the market leader in the online market. 
A)  the strategic actions initiated by Netflix threatened Blockbusters core business. 
B)  the growing size of Netflix increased its likelihood of initiating a first-mover attack. 
C)  Blockbuster's dependence on the rental market as the primary source for its revenues. 
D)  Netflix's reputation as the market leader in the online market.

Question 19

Rapid-Built Homes specializes in low-cost prefabricated, modular homes that can be erected in a matter of days anywhere in the country. Rapid-Built focuses on entire subdivisions of homes developed by real estate speculators. ModernModular Homes (ModMod) specializes in modular homes designed by architects which can be built anywhere in the country. The buyers usually build the home themselves from kits on their own lots. ModMod sells fewer than 100 house kits per year. ModMod is run by two professors of architecture as a sideline business. According to the "Framework of Competitive Analysis," we can say that Rapid-Built and ModMod

Accepted Answer

A)  are direct mutually-acknowledged competitors. 
B)  have high resource similarity. 
C)  have high market commonality. 
D)  are probably not engaged in intense competitive rivalry. 
A)  are direct mutually-acknowledged competitors. 
B)  have high resource similarity. 
C)  have high market commonality. 
D)  are probably not engaged in intense competitive rivalry.

Question 20

Which of the following is an example of a tactical action?

Accepted Answer

A)  Wal-Mart's launch of Sam's Club stores. 
B)  Continental Airlines exit from a hub airport in Denver. 
C)  Netflix beginning to offer music DVDs in addition to movies. 
D)  Dell's launch of a new line of high performance, custom-made PCs. 
A)  Wal-Mart's launch of Sam's Club stores. 
B)  Continental Airlines exit from a hub airport in Denver. 
C)  Netflix beginning to offer music DVDs in addition to movies. 
D)  Dell's launch of a new line of high performance, custom-made PCs.

A competitive action is a strategic or tactical action taken by a firm to gain or defend a competitive advantage.

Quality is

Two firms that have similar resources, but do not share markets would not be direct and mutually acknowledged competitors.

Competitors are more likely to respond to competitive actions that are taken by

Both and affect the awareness and motivation of a firm to undertake actions and responses.

Kodak has recently entered the inkjet printer market. While this is an established market, Kodak's use of a new ink technology makes them a first mover.

Which of the following statements is FALSE?

Competitive rivalry has the most effect on the firm's ____ strategies than the firm's other strategies.

The more dependent a firm is on its market, the more aggressively it will defend it from another competitor.

Ninety percent of Wm. Wrigley Company's total revenue comes from chewing gum. This is an example of

Define slow-cycle, fast-cycle and standard cycle markets.

A firm can expect that every launch of a successful new product will be followed by a counterattack by competitors, even in a slow-cycle market.

HP and Dell are mutually interdependent organizations.

An organization with high profitability, such as Toyota, will be able to develop high organizational slack.

A firm that is LEAST likely to launch competitive actions is one that has

Product quality is a universal theme and is a necessary, but not a sufficient, condition for competitive success.

Which of the following is an example of a tactical action?

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Corporate-Level Strategy

Acquisition and Restructuring Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

Exam 5: Competitive Rivalry and Competitive Dynamics

A competitive action is a strategic or tactical action taken by a firm to gain or defend a competitive advantage.

Quality is

Two firms that have similar resources, but do not share markets would not be direct and mutually acknowledged competitors.

Competitors are more likely to respond to competitive actions that are taken by

Both ____ and ____ affect the awareness and motivation of a firm to undertake actions and responses.

Kodak has recently entered the inkjet printer market. While this is an established market, Kodak's use of a new ink technology makes them a first mover.

Which of the following statements is FALSE?

Competitive rivalry has the most effect on the firm's ____ strategies than the firm's other strategies.

The more dependent a firm is on its market, the more aggressively it will defend it from another competitor.

Ninety percent of Wm. Wrigley Company's total revenue comes from chewing gum. This is an example of

Define slow-cycle, fast-cycle and standard cycle markets.

A firm can expect that every launch of a successful new product will be followed by a counterattack by competitors, even in a slow-cycle market.

HP and Dell are mutually interdependent organizations.

An organization with high profitability, such as Toyota, will be able to develop high organizational slack.

A firm that is LEAST likely to launch competitive actions is one that has

Product quality is a universal theme and is a necessary, but not a sufficient, condition for competitive success.

Which of the following is an example of a tactical action?

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Corporate-Level Strategy

Acquisition and Restructuring Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

Both and affect the awareness and motivation of a firm to undertake actions and responses.