Exam 4: Further Topics in Industry and Competitive Analysis

The profitability of making inkjet cartridges depends critically upon their complementary relationship with between inkjet printers.

The key implication of "hypercompetition" in business is that:

"Profit pool mapping" describes a technique for:

Signaling refers to:

A "prisoners' dilemma" situation in which a failure to cooperate leaves both parties worse off is as likely in a multi-period game as in a single-period game.

The value of a product to its consumers tends to be reduced by availability of close substitutes.Similarly,the value if a product to its consumers is reduced by the availability of complements.

While the Porter five forces framework is built upon the structure-conduct-performance model of industrial economics,Schumpeter's view of competition as creative destruction builds upon:

The prediction that hypercompetition makes competitive advantage temporary:

After arriving in Mexico in 1519,the destruction by Hernan Cortes of his own ships was a signal,in game theory terminology,of "commitment" for his troops to the conquest of the Aztec empire

"Deterrence" can be defined as imposing costs on the other players for actions that we deem to be desirable

In common with the Porter five forces framework,the Schumpeterian approach views competitive behavior as the outcome of industry structure.

The relationship between competition and cooperation can be described as follows:

Strategic group analysis is primarily useful for:

The producer of a complementary product can maximize its relative bargaining power by means of:

The tendency for both Coca-Cola and Pepsi to compete through large advertising budgets which have little impact on their relative market shares cannot be a true example of a "prisoners' dilemma" because both firms remain highly profitable.

To analyze the profit potential of different industry segments,we can use the same Porter five forces of competition framework that we use to analyze the profit potential of different industries.

Deterrence is a competitive action that is more attractive to firms that compete in multiple markets than in a single market because the resulting reputation can be transferred from one market to another.

Segmentation is a process through which:

If administering deterrence is costly or unpleasant for the threatening party,then:

The ability to predict a competitor's behavior is facilitated by the tendency for the managers within an industry to share common beliefs about their industry and about the key success factors within it.