Exam 18: Creating Competitive Advantage

Fosters and Mason House, two major coffee brands, competed neck and neck based on their product attributes and price promotions. They were soon blindsided by the arrival of Starcoffeez, which focused more on the coffee experience rather than the coffee. This resulted in major losses for the two companies. This is an example of ________.

Name the three value disciplines.

Rather than competing head to head with established competitors, many companies seek out unoccupied positions in uncontested market spaces. They try to create products and services for which there are no direct competitors. This is called a ________.

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

According to Michael Porter, what are three effective competitive positioning strategies?

To remain number one, leading firms can take any of three actions. First, they can find ways to expand total demand. Second, they can protect their current market share through good defensive and offensive actions. Third, they can ________.

Refer to the scenario below to answer the following question(s). 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. -Essential-Beauty considers one of its most important competitors to be Look-Lovely, another marketer of high-end makeup and skin care products sold in drug stores. Based on this, it is most accurate to say that Look-Lovely and Essential-Beauty are both ________.

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

Discuss formal and informal marketing strategies and give examples of companies that follow these strategies.

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

Most companies will compete with ________ rather than ________.

Companies that operate large marketing departments, conduct expensive marketing research, spell out elaborate competitive strategies, and spend huge sums on advertising are using ________ marketing strategies.

Most companies prefer to compete against strong competitors.

Lovelies is the leading workout and fitness center for women. The regional chain of gyms has traditionally catered to women age 40 and older who are interested in strength and cardiovascular training. Lovelies has recently begun promotions to bring younger women into its gyms. This is an example of how the market leader ________.

The competitive intelligence system does all of the following EXCEPT ________.

Firms competing in a given target market, at any point in time, are similar in their objectives and resources.

According to the overall cost leadership competitive strategy, the company works hard to achieve the lowest production and distribution costs.

Which of the following are examples of close competitors?

If a company's offer delivers greater value by exceeding the competitor's offer on important attributes, the company can charge a higher price and ________, or it can charge the same price and ________.

Which of the following are market challenger strategies?