Question 1

Competitive rivalry is the contest to be the first mover in an international market.

Accepted Answer

A) True 
 B)False

Question 2

An organization with high profitability,such as Walmart,will be able to develop high organizational slack.

Accepted Answer

A) True 
 B)False

Question 3

Late movers are those firms that

Accepted Answer

A) respond to a competitive action a significant amount of time after the first mover's action and the second mover's response. 
B) respond to a first mover's competitive action often through imitation or a move designed to counter the effects of the action. 
C) take an initial competitive action (either strategic or tactical). 
D) typically achieve higher-than-average returns because they can imitate the most efficient actor. 
A) respond to a competitive action a significant amount of time after the first mover's action and the second mover's response. 
B) respond to a first mover's competitive action often through imitation or a move designed to counter the effects of the action. 
C) take an initial competitive action (either strategic or tactical). 
D) typically achieve higher-than-average returns because they can imitate the most efficient actor.

Question 4

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 5

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 6

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 7

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 8

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

Accepted Answer

A) A "two movies for the price of one" campaign by Blockbuster Video 
B) Use of product coupons by a local grocer 
C) Entry into the European market by Home Depot 
D) Fare increases by Southwest Airlines 
A) A "two movies for the price of one" campaign by Blockbuster Video 
B) Use of product coupons by a local grocer 
C) Entry into the European market by Home Depot 
D) Fare increases by Southwest Airlines

Question 9

Firms with competitors.

Accepted Answer

A) low; high 
B) low; low 
C) high; high 
D) high; low market commonality and
Resource similarity are direct and mutually acknowledged 
A) low; high 
B) low; low 
C) high; high 
D) high; low market commonality and
Resource similarity are direct and mutually acknowledged

Question 10

What is market commonality? What is resource similarity? How are these concepts combined to identify the level of competition between two firms?

Accepted Answer

Market commonality is concerned with the

Question 11

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

Accepted Answer

In general, a firm is more likely to res

Question 12

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,what would be Akamai's likely response?

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 13

Research suggests that a firm with greater multimarket contact is less likely to initiate an attack,but more likely to respond aggressively when attacked.

Accepted Answer

A) True 
 B)False

Question 14

Walmart has 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 15

Define competitors,competitive rivalry,competitive behavior,and competitive dynamics.

Accepted Answer

Competitors are firms competing in the s

Question 16

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 17

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 18

Case Scenario 2: 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 5 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 Walmart, who in turn have been unwilling to help Plasco absorb the higher resin costs. Enhancing Walmart'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 percent to 15 percent less than Plasco.
-(Refer to Case Scenario 2). Is the toolbox business a slow-,standard-,or fast-cycle business?

Accepted Answer

The best answers will suggest that the c

Question 19

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 20

In general,firms are more aware of competitors who have similar resources and who

Accepted Answer

A) have low market dependence. 
B) are late movers. 
C) have low market commonality. 
D) compete against the firm in multiple markets. 
A) have low market dependence. 
B) are late movers. 
C) have low market commonality. 
D) compete against the firm in multiple markets.

Competitive rivalry is the contest to be the first mover in an international market.

An organization with high profitability,such as Walmart,will be able to develop high organizational slack.

Late movers are those firms that

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.

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

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

Firms with competitors.

What is market commonality? What is resource similarity? How are these concepts combined to identify the level of competition between two firms?

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

Research suggests that a firm with greater multimarket contact is less likely to initiate an attack,but more likely to respond aggressively when attacked.

Define competitors,competitive rivalry,competitive behavior,and competitive dynamics.

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.

A second mover

In general,firms are more aware of competitors who have similar resources and who

Strategic Management and Strategic Competitivenes

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.

Competitive rivalry is the contest to be the first mover in an international market.

An organization with high profitability,such as Walmart,will be able to develop high organizational slack.

Late movers are those firms that

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.

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

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

Firms with competitors.

What is market commonality? What is resource similarity? How are these concepts combined to identify the level of competition between two firms?

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

Research suggests that a firm with greater multimarket contact is less likely to initiate an attack,but more likely to respond aggressively when attacked.

Define competitors,competitive rivalry,competitive behavior,and competitive dynamics.

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.

A second mover

In general,firms are more aware of competitors who have similar resources and who

Strategic Management and Strategic Competitivenes

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