Question 1

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 2

In customer feedback surveys, RTC Corp customers have indicated that they have a similar experience each time they interact with the company.This reflects success in which service quality dimension?

Accepted Answer

A)  Consistency 
B)  Courtesy 
C)  Accuracy 
D)  Performance 
A)  Consistency 
B)  Courtesy 
C)  Accuracy 
D)  Performance

Question 3

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, 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 4

Market commonality is concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each.

Accepted Answer

A) True 
 B)False

Question 5

Walmart recently opened a store in Alsatia, Missouri.Several local small retailers have decided that choosing not to respond to Walmart's competitive actions is a viable long-term option, because although the companies have high market commonality, they have little resource similarity.These small retailers are correct in their decision.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

In general, compared with firms that compete in only one market, among firms that face one another in multiple markets there is:

Accepted Answer

A)  similar competitive rivalry. 
B)  less competitive rivalry. 
C)  more competitive rivalry. 
D)  no competitive rivalry. 
A)  similar competitive rivalry. 
B)  less competitive rivalry. 
C)  more competitive rivalry. 
D)  no competitive rivalry.

Question 8

Quality affects competitive rivalry because a competitor whose products suffer from poor quality likely will __________ until __________.

Accepted Answer

A)  initiate more competitive actions; the firm returns to profitability 
B)  initiate fewer competitive actions; the quality problems are corrected 
C)  initiate more competitive actions; the quality problems are corrected 
D)  advertise more; customers believe the quality has improved 
A)  initiate more competitive actions; the firm returns to profitability 
B)  initiate fewer competitive actions; the quality problems are corrected 
C)  initiate more competitive actions; the quality problems are corrected 
D)  advertise more; customers believe the quality has improved

Question 9

Competitive rivalry has more effect on a 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

Without quality, the firm's products:

Accepted Answer

A)  can compete effectively on the basis of low price. 
B)  lack credibility among customers. 
C)  must be exported to developing countries, because they are not competitive in the United States or developed countries. 
D)  are associated with predatory competition. 
A)  can compete effectively on the basis of low price. 
B)  lack credibility among customers. 
C)  must be exported to developing countries, because they are not competitive in the United States or developed countries. 
D)  are associated with predatory competition.

Question 11

Mighty Mike's, a manufacturer of power tools for the home hobbyist, has seen its main competitor, MyTools, introduce a line of power tools that are smaller sized, lighter weight, and suitable for women and older hobbyists who have weaker hands than the typical male workshop hobbyist.Mighty Mike's is waiting to see whether MyTools' new line is a success.Mighty Mike's could be classified as a second mover.

Accepted Answer

A) True 
 B)False

Question 12

Competitive rivalry is the ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantageous market position.

Accepted Answer

A) True 
 B)False

Question 13

A strategy's success is determined not only by the firm's initial competitive actions but also by how well it anticipates competitors' responses to them and by how well the firm anticipates and responds to its competitors' initial actions.

Accepted Answer

A) True 
 B)False

Question 14

To be a first mover, the firm must have readily available resources to significantly invest in R&D as well as to rapidly and successfully produce and market a stream of innovative products.

Accepted Answer

A) True 
 B)False

Question 15

In the context of competitive rivalry, what is an actor's reputation?

Accepted Answer

A)  The perceived level of quality customer's associate with the firm's goods or service 
B)  A positive or negative quality attributed to one's rival based on previous competitive behavior 
C)  The willingness of capital markets to invest more in a firm based on past performance 
D)  The degree of loyalty both internal and external stakeholders demonstrate to the firm 
A)  The perceived level of quality customer's associate with the firm's goods or service 
B)  A positive or negative quality attributed to one's rival based on previous competitive behavior 
C)  The willingness of capital markets to invest more in a firm based on past performance 
D)  The degree of loyalty both internal and external stakeholders demonstrate to the firm

Question 16

The satellite dish at Faye's weekend home has malfunctioned.When she calls to have the dish repaired, the service representative tells her that the dish is obsolete and that parts for it are no longer made.Faye must replace the old dish with a new dish.This is an example of lack of firm loyalty to a product in a fast-cycle market.

Accepted Answer

A) True 
 B)False

Question 17

The competitive actions and responses in __________ markets are designed to seek large market shares, to gain customer loyalty through brand names, and to carefully control the firm's operations in order to consistently provide the same positive experience for customers.

Accepted Answer

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

Question 18

Describe a model of competitive rivalry and explain how companies can use it.

Accepted Answer

The model of competitive reality has fou

Question 19

By definition, to be engaged in multimarket competitions, two or more firms must compete against each other in more than one product area and in multiple geographic markets.

Accepted Answer

A) True 
 B)False

Question 20

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 desire to shelter the company from imitation of its competitive advantage. 
D)  standard-cycle markets because innovation is rare, which 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 desire to shelter the company from imitation of its competitive advantage. 
D)  standard-cycle markets because innovation is rare, which gives the innovating firm a significant competitive advantage.

Which of the following statements is false?

In customer feedback surveys, RTC Corp customers have indicated that they have a similar experience each time they interact with the company.This reflects success in which service quality dimension?

Market commonality is concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each.

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

In general, compared with firms that compete in only one market, among firms that face one another in multiple markets there is:

Quality affects competitive rivalry because a competitor whose products suffer from poor quality likely will until .

Competitive rivalry has more effect on a firm's __________ strategies than the firm's other strategies.

Without quality, the firm's products:

Competitive rivalry is the ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantageous market position.

A strategy's success is determined not only by the firm's initial competitive actions but also by how well it anticipates competitors' responses to them and by how well the firm anticipates and responds to its competitors' initial actions.

To be a first mover, the firm must have readily available resources to significantly invest in R&D as well as to rapidly and successfully produce and market a stream of innovative products.

In the context of competitive rivalry, what is an actor's reputation?

The competitive actions and responses in __________ markets are designed to seek large market shares, to gain customer loyalty through brand names, and to carefully control the firm's operations in order to consistently provide the same positive experience for customers.

Describe a model of competitive rivalry and explain how companies can use it.

By definition, to be engaged in multimarket competitions, two or more firms must compete against each other in more than one product area and in multiple geographic markets.

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

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

Which of the following statements is false?

In customer feedback surveys, RTC Corp customers have indicated that they have a similar experience each time they interact with the company.This reflects success in which service quality dimension?

Market commonality is concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each.

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

In general, compared with firms that compete in only one market, among firms that face one another in multiple markets there is:

Quality affects competitive rivalry because a competitor whose products suffer from poor quality likely will __________ until __________.

Competitive rivalry has more effect on a firm's __________ strategies than the firm's other strategies.

Without quality, the firm's products:

Competitive rivalry is the ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantageous market position.

A strategy's success is determined not only by the firm's initial competitive actions but also by how well it anticipates competitors' responses to them and by how well the firm anticipates and responds to its competitors' initial actions.

To be a first mover, the firm must have readily available resources to significantly invest in R&D as well as to rapidly and successfully produce and market a stream of innovative products.

In the context of competitive rivalry, what is an actor's reputation?

The competitive actions and responses in __________ markets are designed to seek large market shares, to gain customer loyalty through brand names, and to carefully control the firm's operations in order to consistently provide the same positive experience for customers.

Describe a model of competitive rivalry and explain how companies can use it.

By definition, to be engaged in multimarket competitions, two or more firms must compete against each other in more than one product area and in multiple geographic markets.

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

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

Quality affects competitive rivalry because a competitor whose products suffer from poor quality likely will until .