Exam 5: Competitive Rivalry and Competitive Dynamics

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It is more likely that locally owned, one-location cafes in a small town will respond more rapidly to tactical actions by each other than they will to strategic actions by the Burger King franchise that has recently moved to their town.

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In a slow-cycle market, such as that experienced in the pharmaceutical industry, a firm is most vulnerable to a counterattack when a drug's patent expires.

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The chief disadvantage of being a first mover is the:

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Bubble-Up, Inc., is a small manufacturer of educational toys for children under age 10.It has co-existed with three other competitors in the educational toy industry for over 20 years, each of them maintaining a stable market share.There is a widespread rumor that Mega-Toy, Inc., the market leader in the broad children's toy market, has decided to target educational toys.Which of the following statements is MOST likely true?

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Competitive dynamics indicates that firms and their strategic actions are independent.

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Economies of scale are critical to success in what type of market?

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