Exam 5: Competitive Rivalry and Dynamics

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," we can say that Rapid-Built and ModMod

Extensive market commonality guarantees intense competition in an industry.

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

Firms that are typically late movers usually have little organizational slack.

A competitive action can be one of two types, either ____ or ____.

Fast-cycle markets are characterized by "generational products" which start out with a substantial technological advance in the performance of a product category followed by incremental technological advances as new generations of products are introduced.

In the Chapter 5 Strategic Focus, companies such as Amazon, Oracle, HP and Dell competing in the cloud computing market have been able to develop sustainable competitive advantages.

A firm is likely to respond to an attack by a competitor in all of the following situations EXCEPT

Goods or services in standard-cycle markets reflect

Hilliard Pharmaceuticals and Ahrens Vitamins, Inc., have high market commonality, both geographically and in the market segments in which they compete. Hilliard, the number two firm in the industry, has undertaken a major strategic attack upon Ahrens, the market leader. Which of the following statements is most likely to be TRUE?

Intensified rivalry within an industry results in

Reverse engineering is characteristic of

Traditionally, the music industry signed multi-year contracts with artists and sold copyright protected music through established distribution channels. A shift to the digital format and the rise of Internet technology has resulted in the sharing of music over peer-to-peer networks, a practice the industry called "piracy." In recent years, the music industry has seen a rapid decline in the number of CDs sold. At the same time, the ownership of the distribution rights of musical content under copyright laws remains clear. Attempts at innovation by individual record labels to offer music as direct downloads to consumer are quickly copied by other labels. Based on these factors, the best assessment is that the music industry has shifted from a ____ to a ____ cycle market.

Competition between candy makers (e.g., Hershey, Mars, Cadbury, Nestle, and Godiva) where firms package design (including package downsizing) and ease of availability is characteristic of a

A firm that is LEAST likely to launch competitive actions is one that has

Which of the following is TRUE of Southwest Airlines?

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

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

Intensified rivalry within an industry results in decreased average profitability for the firms within it.

According to the Chapter 5 Strategic Focus, the global automobile producing industry has high market commonality but low resource similarity.