Question 1

A competitive action can be one of two types, either ____ or ____.

Accepted Answer

A)  aggressive, defensive 
B)  quality-based, cost-based 
C)  strategic, tactical 
D)  market-based, resource-based 
A)  aggressive, defensive 
B)  quality-based, cost-based 
C)  strategic, tactical 
D)  market-based, resource-based

Question 2

Even if the effects of a competitor's strategic action on the focal firm are significant (e.g., loss of market share), little response is likely from that firm.

Accepted Answer

A) True 
 B)False

Question 3

Lawsuits over patent and copyright infringements are more common and intense in

Accepted Answer

A)  fast-cycle markets because the market is innovation-driven. 
B)  standard-cycle markets because the firm's brand name is such an important competitive advantage. 
C)  slow-cycle markets, because of the ability to shelter the company from imitation of its competitive advantage. 
D)  standard-cycle markets because innovation is rare, and so gives the innovating firm a significant competitive advantage. 
A)  fast-cycle markets because the market is innovation-driven. 
B)  standard-cycle markets because the firm's brand name is such an important competitive advantage. 
C)  slow-cycle markets, because of the ability to shelter the company from imitation of its competitive advantage. 
D)  standard-cycle markets because innovation is rare, and so gives the innovating firm a significant competitive advantage.

Question 4

Wal-Mart's aggressive pricing strategy is a strategic action that plays a major role in how it competes.

Accepted Answer

A) True 
 B)False

Question 5

Because of the demanding technology development required, disruptive innovations such as the iPhone are usually confined to a single industry where it can focus on competing against a few rivals (Chapter 5 Opening Case).

Accepted Answer

A) True 
 B)False

Question 6

In the Chapter 5 Strategic Focus, rivals such as Amazon, Oracle, HP and Dell in the cloud computing market are competing in a_________________.

Accepted Answer

A)  fast-cycle market 
B)  standard-cycle market 
C)  incremental-cycle market 
D)  slow-cycle markets 
A)  fast-cycle market 
B)  standard-cycle market 
C)  incremental-cycle market 
D)  slow-cycle markets

Question 7

Canon's desktop copiers and Apple's iPhone are examples of _____________ that are ________ rivalry battles with competitors (Chapter 5 Opening Case).

Accepted Answer

A)  incremental innovations; winning 
B)  disruptive innovations; winning 
C)  new products; intensifying 
D)  disruptive innovations; reducing 
A)  incremental innovations; winning 
B)  disruptive innovations; winning 
C)  new products; intensifying 
D)  disruptive innovations; reducing

Question 8

Firms are likely to imitate the actions of a competitor that is noted for risky, complex, and unpredictable behavior because this is a way to imitate unobservable core competencies.

Accepted Answer

A) True 
 B)False

Question 9

The chief disadvantage of being a first mover is the

Accepted Answer

A)  high degree of risk. 
B)  high level of competition in the new marketplace. 
C)  inability to earn above-average returns unless the production process is very efficient. 
D)  difficulty of obtaining new customers. 
A)  high degree of risk. 
B)  high level of competition in the new marketplace. 
C)  inability to earn above-average returns unless the production process is very efficient. 
D)  difficulty of obtaining new customers.

Question 10

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 11

Which of the following is TRUE of Southwest Airlines?

Accepted Answer

A)  Southwest has an unusually low amount of flexibility for a large firm. 
B)  Southwest's success is largely due to the fact it has little market commonality with other airlines. 
C)  Decision-making responsibility is centered at its Dallas headquarters, which allows the firm to respond quickly to competitive attacks. 
D)  Southwest's advantage lies in its ability to "think small." 
A)  Southwest has an unusually low amount of flexibility for a large firm. 
B)  Southwest's success is largely due to the fact it has little market commonality with other airlines. 
C)  Decision-making responsibility is centered at its Dallas headquarters, which allows the firm to respond quickly to competitive attacks. 
D)  Southwest's advantage lies in its ability to "think small."

Question 12

Firms in a slow-cycle market are shielded from imitators for long periods of time.

Accepted Answer

A) True 
 B)False

Question 13

Sustained competitive advantage is most achievable in a ____ market.

Accepted Answer

A)  slow-cycle 
B)  medium-cycle 
C)  standard-cycle 
D)  fast-cycle 
A)  slow-cycle 
B)  medium-cycle 
C)  standard-cycle 
D)  fast-cycle

Question 14

Define competitive actions and responses and explain the two types of competitive actions and responses.

Accepted Answer

A competitive action is a strategic or t

Question 15

____ and ____ describe the situation in which organizations are direct competitors and are fully aware of the competition.

Accepted Answer

A)  High market commonality, high resource similarity 
B)  High market commonality, low resource similarity 
C)  Low market commonality, high resource similarity 
D)  Low market commonality, low resource similarity 
A)  High market commonality, high resource similarity 
B)  High market commonality, low resource similarity 
C)  Low market commonality, high resource similarity 
D)  Low market commonality, low resource similarity

Question 16

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 17

Carl has just graduated with a management degree. He has a good understanding of his personal strengths and weaknesses and knows he would fit best in a stable organizational environment. In his job search, Carl should target firms in slow-cycle markets.

Accepted Answer

A) True 
 B)False

Question 18

Akamai Technologies is a dominant player in the content delivery network (CDN) market. Akamai is not very diversified (i.e., is dependent on the CDN market). If rival CDN providers such as Limelight Networks and Level 3 Communications lower their basic CDN service prices, what would be Akamai's likely response?

Accepted Answer

A)  raise its prices 
B)  do nothing since it is the market leader 
C)  exit the industry 
D)  lower its prices 
A)  raise its prices 
B)  do nothing since it is the market leader 
C)  exit the industry 
D)  lower its prices

Question 19

Without available resources (such as financial capital and people), the firm lacks the ability to attack a competitor or respond to its actions.

Accepted Answer

A) True 
 B)False

Question 20

Competitive dynamics refers to the

Accepted Answer

A)  circumstances in which competitors are aware of the degree of their mutual interdependence resulting from market commonality and resource similarity. 
B)  set of competitive actions and competitive responses the firm takes to build or defend its competitive advantages and to improve its market position. 
C)  total set of actions and responses taken by all firms competing within a market. 
D)  ongoing set of competitive actions and competitive responses between competitors as they maneuver for advantageous market position. 
A)  circumstances in which competitors are aware of the degree of their mutual interdependence resulting from market commonality and resource similarity. 
B)  set of competitive actions and competitive responses the firm takes to build or defend its competitive advantages and to improve its market position. 
C)  total set of actions and responses taken by all firms competing within a market. 
D)  ongoing set of competitive actions and competitive responses between competitors as they maneuver for advantageous market position.

A competitive action can be one of two types, either or .

Even if the effects of a competitor's strategic action on the focal firm are significant (e.g., loss of market share), little response is likely from that firm.

Lawsuits over patent and copyright infringements are more common and intense in

Wal-Mart's aggressive pricing strategy is a strategic action that plays a major role in how it competes.

Because of the demanding technology development required, disruptive innovations such as the iPhone are usually confined to a single industry where it can focus on competing against a few rivals (Chapter 5 Opening Case).

In the Chapter 5 Strategic Focus, rivals such as Amazon, Oracle, HP and Dell in the cloud computing market are competing in a_________________.

Canon's desktop copiers and Apple's iPhone are examples of _____ that are rivalry battles with competitors (Chapter 5 Opening Case).

Firms are likely to imitate the actions of a competitor that is noted for risky, complex, and unpredictable behavior because this is a way to imitate unobservable core competencies.

The chief disadvantage of being a first mover is the

Which of the following is TRUE of Southwest Airlines?

Firms in a slow-cycle market are shielded from imitators for long periods of time.

Sustained competitive advantage is most achievable in a ____ market.

Define competitive actions and responses and explain the two types of competitive actions and responses.

and describe the situation in which organizations are direct competitors and are fully aware of the competition.

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.

Carl has just graduated with a management degree. He has a good understanding of his personal strengths and weaknesses and knows he would fit best in a stable organizational environment. In his job search, Carl should target firms in slow-cycle markets.

Without available resources (such as financial capital and people), the firm lacks the ability to attack a competitor or respond to its actions.

Competitive dynamics refers to the

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

Merger and Acquisition 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 can be one of two types, either ____ or ____.

Even if the effects of a competitor's strategic action on the focal firm are significant (e.g., loss of market share), little response is likely from that firm.

Lawsuits over patent and copyright infringements are more common and intense in

Wal-Mart's aggressive pricing strategy is a strategic action that plays a major role in how it competes.

Because of the demanding technology development required, disruptive innovations such as the iPhone are usually confined to a single industry where it can focus on competing against a few rivals (Chapter 5 Opening Case).

In the Chapter 5 Strategic Focus, rivals such as Amazon, Oracle, HP and Dell in the cloud computing market are competing in a_________________.

Canon's desktop copiers and Apple's iPhone are examples of _____________ that are ________ rivalry battles with competitors (Chapter 5 Opening Case).

Firms are likely to imitate the actions of a competitor that is noted for risky, complex, and unpredictable behavior because this is a way to imitate unobservable core competencies.

The chief disadvantage of being a first mover is the

Which of the following is TRUE of Southwest Airlines?

Firms in a slow-cycle market are shielded from imitators for long periods of time.

Sustained competitive advantage is most achievable in a ____ market.

Define competitive actions and responses and explain the two types of competitive actions and responses.

____ and ____ describe the situation in which organizations are direct competitors and are fully aware of the competition.

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.

Carl has just graduated with a management degree. He has a good understanding of his personal strengths and weaknesses and knows he would fit best in a stable organizational environment. In his job search, Carl should target firms in slow-cycle markets.

Without available resources (such as financial capital and people), the firm lacks the ability to attack a competitor or respond to its actions.

Competitive dynamics refers to the

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

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

A competitive action can be one of two types, either or .

Canon's desktop copiers and Apple's iPhone are examples of _____ that are rivalry battles with competitors (Chapter 5 Opening Case).

and describe the situation in which organizations are direct competitors and are fully aware of the competition.