Question 1

Which organization has the highest market dependence?

Accepted Answer

A)  a chain of rapid-service oil change shops 
B)  a manufacturer of chemicals for the international pharmaceutical industry 
C)  a regional department store having 26 locations in the Northwest 
D)  a company that specializes in making replacement tiles for the space shuttle 
A)  a chain of rapid-service oil change shops 
B)  a manufacturer of chemicals for the international pharmaceutical industry 
C)  a regional department store having 26 locations in the Northwest 
D)  a company that specializes in making replacement tiles for the space shuttle

Question 2

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

Question 3

A second mover

Accepted Answer

A)  is typically ineffective in its response to the first mover. 
B)  attempts to provide a product with greater customer value than the first mover's product. 
C)  usually incurs higher expenses than the first mover since it must engage in reverse engineering. 
D)  typically has a higher survival rate than first movers which typically take greater risks. 
A)  is typically ineffective in its response to the first mover. 
B)  attempts to provide a product with greater customer value than the first mover's product. 
C)  usually incurs higher expenses than the first mover since it must engage in reverse engineering. 
D)  typically has a higher survival rate than first movers which typically take greater risks.

Question 4

Competitive dynamics refers to the

Accepted Answer

A)  circumstances in which competitors are aware of the degree of their mutual interdependence resulting from market commonality and resource similarity. 
B)  set of competitive actions and competitive responses the firm takes to build or defend its competitive advantages and to improve its market position. 
C)  total set of actions and responses taken by all firms competing within a market. 
D)  ongoing set of competitive actions and competitive responses between competitors as they maneuver for advantageous market position. 
A)  circumstances in which competitors are aware of the degree of their mutual interdependence resulting from market commonality and resource similarity. 
B)  set of competitive actions and competitive responses the firm takes to build or defend its competitive advantages and to improve its market position. 
C)  total set of actions and responses taken by all firms competing within a market. 
D)  ongoing set of competitive actions and competitive responses between competitors as they maneuver for advantageous market position.

Question 5

Case Scenario : Plasco.
Plasco is a $3 billion U.S.-based manufacturer of flexible plastic products like trash cans, reheatable and freezable food containers, and a broad range of other plastic storage containers designed for home and office use. Historically, Plasco has been the category killer for most of its products and has devoted tremendous resources to new product development on an ongoing basis - this research intensity has allowed the company to release, on average, a new product every day over the past five years. Despite its past strength and high brand awareness, Plasco's profitability has been eroded by dramatic increases in the cost of plastic resin, the primary input into its plastic products. Moreover, the retail channel has experienced rapid consolidation resulting in a shift in the balance of power from branded manufacturers like Plasco, to strong retailers like Wal-Mart, who in turn have been unwilling to help Plasco absorb the higher resin costs. Enhancing Wal-Mart's power is the fact that it can always turn to alternative high-volume sources of consumer plastic products like Sterlite. Further hampering Plasco's recovery is the emergence of feisty little foreign competitors like Zig Industries, a $250 million Israeli firm that has begun to take part of Plasco's market share in plastic toolboxes. Ironically, Plasco was the first company to offer plastic toolboxes some 20 years ago. This innovation changed the market dramatically and Plasco's first mover strategy rewarded it with a rapidly growing new segment and a dominant market position. Today, Plasco's toolboxes are viewed as rather boring, while Zig's products are ingeniously designed to catch the customer's eye in the aisle (better merchandising the product) and capture their interest (and pocketbook) with many new and novel features. Zig is also able to provide this new line of toolboxes at between 10% to 15% less than Plasco.
-(Refer to the above Case Scenario ) How can a small player like Zig be such a successful competitor against a large, established firm like Plasco?

Accepted Answer

The value of this question is that it fo

Question 6

Even if the effects of a competitor's strategic action on the focal firm are significant (e.g., loss of market share), little response is likely from that firm.

Accepted Answer

A) True 
 B)False

Question 7

Coca Cola and PepsiCo compete across a number of products (e.g., soft drinks, bottled water) and geographic markets (U.S. and foreign markets) indicating that both companies have market commonality.

Accepted Answer

A) True 
 B)False

Question 8

Intensified rivalry within an industry results in

Accepted Answer

A)  increased hiring across the industry. 
B)  increased total revenues across the industry. 
C)  decreased average profitability across the industry. 
D)  increased entries into the industry. 
A)  increased hiring across the industry. 
B)  increased total revenues across the industry. 
C)  decreased average profitability across the industry. 
D)  increased entries into the industry.

Question 9

A competitive action is a strategic or tactical action taken by a firm to gain or defend a competitive advantage or improve its market position.

Accepted Answer

A) True 
 B)False

Question 10

Define competitive actions and responses and explain the two types of competitive actions and responses.

Accepted Answer

A competitive action is a strategic or t

Question 11

Quality is

Accepted Answer

A)  meeting or exceeding customer expectations in the goods and/or services offered. 
B)  only a major factor in the production of luxury goods, such as BMW cars. 
C)  an assured way to gain competitive advantage. 
D)  a viable trade-off with product cost in gaining a competitive advantage. 
A)  meeting or exceeding customer expectations in the goods and/or services offered. 
B)  only a major factor in the production of luxury goods, such as BMW cars. 
C)  an assured way to gain competitive advantage. 
D)  a viable trade-off with product cost in gaining a competitive advantage.

Question 12

Which of the following is the most strategic action by Wal-Mart?

Accepted Answer

A)  Aggressive pricing to ensure they are a price leader 
B)  Aggressively pricing toys and electronics during the holiday season 
C)  Aggressively pricing school-related items in the back-to-school season 
D)  Entering a new foreign market 
A)  Aggressive pricing to ensure they are a price leader 
B)  Aggressively pricing toys and electronics during the holiday season 
C)  Aggressively pricing school-related items in the back-to-school season 
D)  Entering a new foreign market

Question 13

Reverse engineering is characteristic of

Accepted Answer

A)  first movers. 
B)  fast-cycle markets. 
C)  market leaders. 
D)  price predators. 
A)  first movers. 
B)  fast-cycle markets. 
C)  market leaders. 
D)  price predators.

Question 14

The chief disadvantage of being a first mover is the

Accepted Answer

A)  high degree of risk. 
B)  high level of competition in the new marketplace. 
C)  inability to earn above-average returns unless the production process is very efficient. 
D)  difficulty of obtaining new customers. 
A)  high degree of risk. 
B)  high level of competition in the new marketplace. 
C)  inability to earn above-average returns unless the production process is very efficient. 
D)  difficulty of obtaining new customers.

Question 15

Mighty Mike's, a manufacturer of power tools for the home hobbyist, has seen its main competitor, MyTools, bring out 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 is waiting to see whether MyTool's new line is a success. Mighty Mike could be classified as a second mover.

Accepted Answer

A) True 
 B)False

Question 16

Wal-Mart has recently opened a store in Alsatia, Missouri. Several local small retailers have decided that choosing not to respond to Wal-Mart'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 17

Firms with ______ market commonality and _____ resource similarity are direct and mutually acknowledged competitors.

Accepted Answer

A)  low; high 
B)  low; low 
C)  high; high 
D)  high; low 
A)  low; high 
B)  low; low 
C)  high; high 
D)  high; low

Question 18

Wal-Mart 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 marshal resources 
C)  rapid; perceived gains from responding to Wal- Mart's attack 
D)  rapid; had the resources and flexibility compete against Wal-Mart 
A)  rapid; were nimble and flexible 
B)  slow; lacked the ability to marshal resources 
C)  rapid; perceived gains from responding to Wal- Mart's attack 
D)  rapid; had the resources and flexibility compete against Wal-Mart

Question 19

Bayou Belle Water markets water drawn only from a single artesian well in Southern Louisiana. It has a loyal following in its region. Since Bayou Belle markets the water, just as Coca-Cola, Nestle, and PepsiCo do, Bayou Belle has high resource similarity with these international firms.

Accepted Answer

A) True 
 B)False

Question 20

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.

Which organization has the highest market dependence?

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

A second mover

Competitive dynamics refers to the

Even if the effects of a competitor's strategic action on the focal firm are significant (e.g., loss of market share), little response is likely from that firm.

Coca Cola and PepsiCo compete across a number of products (e.g., soft drinks, bottled water) and geographic markets (U.S. and foreign markets) indicating that both companies have market commonality.

Intensified rivalry within an industry results in

A competitive action is a strategic or tactical action taken by a firm to gain or defend a competitive advantage or improve its market position.

Define competitive actions and responses and explain the two types of competitive actions and responses.

Quality is

Which of the following is the most strategic action by Wal-Mart?

Reverse engineering is characteristic of

The chief disadvantage of being a first mover is the

Firms with __ market commonality and _ resource similarity are direct and mutually acknowledged competitors.

Wal-Mart 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 ____.

Bayou Belle Water markets water drawn only from a single artesian well in Southern Louisiana. It has a loyal following in its region. Since Bayou Belle markets the water, just as Coca-Cola, Nestle, and PepsiCo do, Bayou Belle has high resource similarity with these international firms.

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

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 organization has the highest market dependence?

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

A second mover

Competitive dynamics refers to the

Even if the effects of a competitor's strategic action on the focal firm are significant (e.g., loss of market share), little response is likely from that firm.

Coca Cola and PepsiCo compete across a number of products (e.g., soft drinks, bottled water) and geographic markets (U.S. and foreign markets) indicating that both companies have market commonality.

Intensified rivalry within an industry results in

A competitive action is a strategic or tactical action taken by a firm to gain or defend a competitive advantage or improve its market position.

Define competitive actions and responses and explain the two types of competitive actions and responses.

Quality is

Which of the following is the most strategic action by Wal-Mart?

Reverse engineering is characteristic of

The chief disadvantage of being a first mover is the

Firms with ______ market commonality and _____ resource similarity are direct and mutually acknowledged competitors.

Wal-Mart 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 __________.

Bayou Belle Water markets water drawn only from a single artesian well in Southern Louisiana. It has a loyal following in its region. Since Bayou Belle markets the water, just as Coca-Cola, Nestle, and PepsiCo do, Bayou Belle has high resource similarity with these international firms.

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

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

Firms with __ market commonality and _ resource similarity are direct and mutually acknowledged competitors.

Wal-Mart 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 ____.