Question 1

__________ relates to the gains or losses a firm expects to experience if it attacks a rival or responds to an attack by a rival.

Accepted Answer

A)  Motivation 
B)  Awareness 
C)  Responsiveness 
D)  Ability 
A)  Motivation 
B)  Awareness 
C)  Responsiveness 
D)  Ability A

Question 2

Which pair of firms has the LEAST resource similarity?

Accepted Answer

A)  Small, family-owned Italian restaurant; Olive Garden 
B)  Target; Walmart 
C)  HP; Dell 
D)  FedEx; UPS 
A)  Small, family-owned Italian restaurant; Olive Garden 
B)  Target; Walmart 
C)  HP; Dell 
D)  FedEx; UPS A

Question 3

What factors contribute to the likelihood of a response to a competitive action?

Accepted Answer

In general, a firm is more likely to respond to a competitive action if: (1) the action leads to better use of the competitor's capabilities to develop a stronger competitive advantage or an improvement in its market position, (2) the action damages the firm's ability to use its competencies to create or maintain an advantage, or (3) the firm's market position becomes harder to defend.In addition, a firm is more likely to respond to a competitor's tactical action, rather than to a competitor's strategic action.Strategic actions involve a significant commitment of resources and are difficult to implement and reverse, as well as requiring time to put into place.In contrast, tactical actions can be implemented quickly, are quickly reversed, and are relatively less costly than strategic actions.A firm is also more likely to respond to a competitor's action when the competitor is the market leader-a firm that has the reputation for above-average returns.Successful actions by competitors are likely to be quickly imitated, even if not initiated by a market leader.Actions by price predators are usually not responded to, nor are actions by firms with reputations for risky, complex, and unpredictable behavior.Finally, competitors with high market dependence are likely to respond strongly to attacks threatening their market position.

Question 4

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 5

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, which of the following would Akamai likely do?

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 6

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

Accepted Answer

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

Question 7

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 8

On the whole, there are more competitive responses to:

Accepted Answer

A)  strategic actions than to tactical actions. 
B)  tactical actions than to strategic actions. 
C)  buyer pressures than to supplier pressures. 
D)  the demands of the top management team than to industry structural pressures. 
A)  strategic actions than to tactical actions. 
B)  tactical actions than to strategic actions. 
C)  buyer pressures than to supplier pressures. 
D)  the demands of the top management team than to industry structural pressures.

Question 9

In order to compete effectively, standard-cycle firms need all of the following EXCEPT:

Accepted Answer

A)  large market share. 
B)  customer loyalty through brand name. 
C)  careful control of operations to preserve consistency for customers. 
D)  rapid and continuous product introductions. 
A)  large market share. 
B)  customer loyalty through brand name. 
C)  careful control of operations to preserve consistency for customers. 
D)  rapid and continuous product introductions.

Question 10

The set of both competitive actions and responses that a firm takes to build or defend its competitive advantages and to improve its position in the market makes up competitive behavior.

Accepted Answer

A) True 
 B)False

Question 11

Consumer goods producers are innovating in terms of healthy products.This type of incremental innovation is typical of:

Accepted Answer

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

Question 12

Walt Disney's focus on __________ is typical of a slow-cycle market.

Accepted Answer

A)  innovation 
B)  total quality 
C)  proprietary rights 
D)  economies of scale 
A)  innovation 
B)  total quality 
C)  proprietary rights 
D)  economies of scale

Question 13

Which of the following industries can be LEAST described as a slow-cycle market?

Accepted Answer

A)  Freight railroads 
B)  Pharmaceuticals 
C)  Cell phone providers 
D)  Private ownership of highways and bridges 
A)  Freight railroads 
B)  Pharmaceuticals 
C)  Cell phone providers 
D)  Private ownership of highways and bridges

Question 14

What are the advantages and disadvantages of being a first mover, second mover, and late mover?

Accepted Answer

First movers can gain market share, cust

Question 15

The flat-panel television market where prices have come down and competition has become more stable is best characterized as:

Accepted Answer

A)  standard-cycle. 
B)  fast-cycle. 
C)  slow-cycle. 
D)  competitive rivalry. 
A)  standard-cycle. 
B)  fast-cycle. 
C)  slow-cycle. 
D)  competitive rivalry.

Question 16

Walmart initially used a focused cost leadership strategy to compete only in small communities by using sophisticated logistics systems and efficient purchasing practices to gain a competitive advantage.The response of local competitors was __________ because they __________.

Accepted Answer

A)  rapid; were nimble and flexible 
B)  slow; lacked the ability to line up resources 
C)  slow; did not perceive gains associated with responding to Walmart's attack 
D)  rapid; had the resources and flexibility to compete against Walmart 
A)  rapid; were nimble and flexible 
B)  slow; lacked the ability to line up resources 
C)  slow; did not perceive gains associated with responding to Walmart's attack 
D)  rapid; had the resources and flexibility to compete against Walmart

Question 17

A firm can predict that a competitor whose products suffer from poor quality is likely to be less aggressive in its competitive actions until those quality problems are corrected.

Accepted Answer

A) True 
 B)False

Question 18

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 19

The ability of Disney to maintain its competitive advantage through proprietary rights to its characters would be severely weakened if:

Accepted Answer

A)  theme parks with alternative cartoon characters were built in large numbers. 
B)  numerous lawsuits against copyright thieves tainted the reputation of the company. 
C)  Disney attempted to move beyond its traditional industry. 
D)  Disney's cartoon characters became widely perceived as old-fashioned and unappealing. 
A)  theme parks with alternative cartoon characters were built in large numbers. 
B)  numerous lawsuits against copyright thieves tainted the reputation of the company. 
C)  Disney attempted to move beyond its traditional industry. 
D)  Disney's cartoon characters became widely perceived as old-fashioned and unappealing.

Question 20

Under the framework of competitive action and response, "ability" refers to an attacking or responding firm's knowledge of the competitive market characteristics.

Accepted Answer

A) True 
 B)False

__________ relates to the gains or losses a firm expects to experience if it attacks a rival or responds to an attack by a rival.

Which pair of firms has the LEAST resource similarity?

What factors contribute to the likelihood of a response to a competitive action?

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

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

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

On the whole, there are more competitive responses to:

In order to compete effectively, standard-cycle firms need all of the following EXCEPT:

The set of both competitive actions and responses that a firm takes to build or defend its competitive advantages and to improve its position in the market makes up competitive behavior.

Consumer goods producers are innovating in terms of healthy products.This type of incremental innovation is typical of:

Walt Disney's focus on __________ is typical of a slow-cycle market.

Which of the following industries can be LEAST described as a slow-cycle market?

What are the advantages and disadvantages of being a first mover, second mover, and late mover?

The flat-panel television market where prices have come down and competition has become more stable is best characterized as:

Walmart initially used a focused cost leadership strategy to compete only in small communities by using sophisticated logistics systems and efficient purchasing practices to gain a competitive advantage.The response of local competitors was because they .

A firm can predict that a competitor whose products suffer from poor quality is likely to be less aggressive in its competitive actions until those quality problems are corrected.

The ability of Disney to maintain its competitive advantage through proprietary rights to its characters would be severely weakened if:

Under the framework of competitive action and response, "ability" refers to an attacking or responding firm's knowledge of the competitive market characteristics.

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

__________ relates to the gains or losses a firm expects to experience if it attacks a rival or responds to an attack by a rival.

Which pair of firms has the LEAST resource similarity?

What factors contribute to the likelihood of a response to a competitive action?

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

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

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

On the whole, there are more competitive responses to:

In order to compete effectively, standard-cycle firms need all of the following EXCEPT:

The set of both competitive actions and responses that a firm takes to build or defend its competitive advantages and to improve its position in the market makes up competitive behavior.

Consumer goods producers are innovating in terms of healthy products.This type of incremental innovation is typical of:

Walt Disney's focus on __________ is typical of a slow-cycle market.

Which of the following industries can be LEAST described as a slow-cycle market?

What are the advantages and disadvantages of being a first mover, second mover, and late mover?

The flat-panel television market where prices have come down and competition has become more stable is best characterized as:

Walmart initially used a focused cost leadership strategy to compete only in small communities by using sophisticated logistics systems and efficient purchasing practices to gain a competitive advantage.The response of local competitors was __________ because they __________.

A firm can predict that a competitor whose products suffer from poor quality is likely to be less aggressive in its competitive actions until those quality problems are corrected.

The ability of Disney to maintain its competitive advantage through proprietary rights to its characters would be severely weakened if:

Under the framework of competitive action and response, "ability" refers to an attacking or responding firm's knowledge of the competitive market characteristics.

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 .

Walmart initially used a focused cost leadership strategy to compete only in small communities by using sophisticated logistics systems and efficient purchasing practices to gain a competitive advantage.The response of local competitors was because they .