Question 1

Which of the following is the weakest an example of a "shock"?

Accepted Answer

A)  Contracting to use another firm's proprietary process 
B)  Product Innovations 
C)  Discoveries of new sources of consumer value or market segments 
D)  Shifts in demand 
E)  Changes in public policy that enables firms to significantly shift their strategic position in a business 
A)  Contracting to use another firm's proprietary process 
B)  Product Innovations 
C)  Discoveries of new sources of consumer value or market segments 
D)  Shifts in demand 
E)  Changes in public policy that enables firms to significantly shift their strategic position in a business

Question 2

What term best describes when quiet periods in markets are punctuated by fundamental "shocks" or "discontinuities" that destroy old sources of advantage and replace them with new ones?

Accepted Answer

A)  Creative destruction 
B)  Entrepreneurship 
C)  Innovation 
D)  Market for ideas 
E)  Disruptive technologies 
A)  Creative destruction 
B)  Entrepreneurship 
C)  Innovation 
D)  Market for ideas 
E)  Disruptive technologies

Question 3

What type of isolating mechanisms increase the economic power of a competitive advantage over time once a firm has acquired that advantage?

Accepted Answer

A)  Scarce 
B)  Imperfectly mobile 
C)  Early-mover advantages 
D)  Impediments to imitation 
E)  Cospecialized 
A)  Scarce 
B)  Imperfectly mobile 
C)  Early-mover advantages 
D)  Impediments to imitation 
E)  Cospecialized

Question 4

Size,growth,and character of home demand for a firm's product are examples of what?

Accepted Answer

A)  Factor conditions 
B)  Demand conditions 
C)  Supply conditions 
D)  Related supplier or support industries 
E)  Strategy, structure, and rivalry 
A)  Factor conditions 
B)  Demand conditions 
C)  Supply conditions 
D)  Related supplier or support industries 
E)  Strategy, structure, and rivalry

Question 5

Which of the following is not an impediment to imitation?

Accepted Answer

A)  Legal restrictions 
B)  Superior access to inputs or customers 
C)  Scale diseconomies 
D)  Market size economies 
E)  Intangible barriers: casual ambiguity, dependence on historical circumstances, and social complexity 
A)  Legal restrictions 
B)  Superior access to inputs or customers 
C)  Scale diseconomies 
D)  Market size economies 
E)  Intangible barriers: casual ambiguity, dependence on historical circumstances, and social complexity

Question 6

What product characteristic refers to the situation where consumers place higher value on a product if other consumers also use it?

Accepted Answer

A)  Value creation effect 
B)  Product linkage 
C)  Product externality 
D)  Complementary effect 
E)  Network effect 
A)  Value creation effect 
B)  Product linkage 
C)  Product externality 
D)  Complementary effect 
E)  Network effect

Question 7

What term best refers to fundamental changes that lead to major shifts of competitive positions in a market?

Accepted Answer

A)  Jump 
B)  Shock 
C)  Alteration 
D)  Bolt 
E)  Shift 
A)  Jump 
B)  Shock 
C)  Alteration 
D)  Bolt 
E)  Shift

Question 8

Which of the following terms best describes the situation when sources of competitive advantage in an industry are being created and eroded at an increasingly rapid rate?

Accepted Answer

A)  Leveraging resources 
B)  Strategic intent 
C)  Strategic stretch 
D)  Hypercompetition 
E)  Global dominance 
A)  Leveraging resources 
B)  Strategic intent 
C)  Strategic stretch 
D)  Hypercompetition 
E)  Global dominance

Question 9

What term refers to the costs incurred by buyers when they change to a different supplier?

Accepted Answer

A)  Switching costs 
B)  Buyer costs 
C)  Reputation costs 
D)  Learning costs 
E)  Customer costs 
A)  Switching costs 
B)  Buyer costs 
C)  Reputation costs 
D)  Learning costs 
E)  Customer costs

Question 10

Which of the following is least likely a characteristic of profit persistence in an industry?

Accepted Answer

A)  Entry barriers exist 
B)  Economic profits should quickly converge to zero 
C)  Barriers to imitation exist 
D)  Firms earning above-average profits today should continue to do so in the future 
E)  Low profit firms today should remain low-profit firms in the future 
A)  Entry barriers exist 
B)  Economic profits should quickly converge to zero 
C)  Barriers to imitation exist 
D)  Firms earning above-average profits today should continue to do so in the future 
E)  Low profit firms today should remain low-profit firms in the future

Which of the following is the weakest an example of a "shock"?

What term best describes when quiet periods in markets are punctuated by fundamental "shocks" or "discontinuities" that destroy old sources of advantage and replace them with new ones?

What type of isolating mechanisms increase the economic power of a competitive advantage over time once a firm has acquired that advantage?

Size,growth,and character of home demand for a firm's product are examples of what?

Which of the following is not an impediment to imitation?

What product characteristic refers to the situation where consumers place higher value on a product if other consumers also use it?

What term best refers to fundamental changes that lead to major shifts of competitive positions in a market?

Which of the following terms best describes the situation when sources of competitive advantage in an industry are being created and eroded at an increasingly rapid rate?

What term refers to the costs incurred by buyers when they change to a different supplier?

Which of the following is least likely a characteristic of profit persistence in an industry?

The Power of Principles: an Historical Perspective

Economies of Scale and Scope

The Vertical Boundaries of the Firm

Integration and Its Alternatives

Competitors and Competition

Entry and Exit

The Dynamics Competing Across Time

Industry Analysis

Strategic Positioning for Competitive Advantage

Information and Value Creation

Performance Measurement and Incentives

Strategy and Structure

Environment, power, and Culture

Filters

Exam 11: Sustaining Competitive Advantage

Which of the following is the weakest an example of a "shock"?

What term best describes when quiet periods in markets are punctuated by fundamental "shocks" or "discontinuities" that destroy old sources of advantage and replace them with new ones?

What type of isolating mechanisms increase the economic power of a competitive advantage over time once a firm has acquired that advantage?

Size,growth,and character of home demand for a firm's product are examples of what?

Which of the following is not an impediment to imitation?

What product characteristic refers to the situation where consumers place higher value on a product if other consumers also use it?

What term best refers to fundamental changes that lead to major shifts of competitive positions in a market?

Which of the following terms best describes the situation when sources of competitive advantage in an industry are being created and eroded at an increasingly rapid rate?

What term refers to the costs incurred by buyers when they change to a different supplier?

Which of the following is least likely a characteristic of profit persistence in an industry?

The Power of Principles: an Historical Perspective

Economies of Scale and Scope

The Vertical Boundaries of the Firm

Integration and Its Alternatives

Competitors and Competition

Entry and Exit

The Dynamics Competing Across Time

Industry Analysis

Strategic Positioning for Competitive Advantage

Information and Value Creation

Performance Measurement and Incentives

Strategy and Structure

Environment, power, and Culture

Filters