Exam 18: Creating Competitive Advantage

Computer mouse and interface device maker AdvTechPRO is only a fraction the size of software giant Terminal Time Software Inc. AdvTechPRO manufactures every variation of computer mouse imaginable (for left-handed people, wireless mice, shaped like actual mice, LED mice, etc.). Through skillful ________, the firm dominates the PC mouse market, with Terminal Time Software as its runner up.

To remain number one, leading firms can take any of three actions. First, they can find ways to expand total demand. Second, they can protect their current market share through good defensive and offensive actions. Third, they can ________.

A company that focuses on customer developments in designing its marketing strategies and on delivering superior value to its target customers is a ________ company.

Firms that serve small segments not being pursued by other firms are called ________.

Porsche is a German automobile manufacturer that competes against BMW and Audi, but only in the sports car and SUV segments of the automobile market. Porsche utilizes a(n) ________ strategy.

Discuss customer intimacy. Why is it important? Provide an example of a company that successfully abides by this value discipline.

Companies with multiple products or businesses typically choose one marketing strategy for all their different businesses or products.

The market leader normally gains the most when ________.

A competitive analysis involves first identifying and assessing competitors and then selecting which competitors to attack or avoid.

Refer to the scenario below to answer the following question(s). Essential-Beauty is a rapidly growing firm that manufactures women's makeup, perfumes, and nail-care products. The company has established itself as a high-end cosmetic product brand available at most national drug stores. In the past, almost all of the advertising for Essential-Beauty has been in women's fashion magazines. The firm is now launching a new line of skin care products, ranging from facial cleansers to body lotion. These products are designed to be marketed to a broader audience, so the marketing team is exploring the effectiveness of different promotional mixes. -Before deciding to launch the new line of products, Essential-Beauty conducted extensive market research to make sure the products were optimally positioned. A complete marketing plan including mobile advertising, magazine advertising, event sponsorship, and sales promotions was established long before the products themselves were ready for market. In this case, Essential-Beauty was using ________.

Lovelies is the leading workout and fitness center for women. The regional chain of gyms has traditionally catered to women age 40 and older who are interested in strength and cardiovascular training. Lovelies has recently begun promotions to bring younger women into its gyms. This is an example of how the market leader ________.

Which of the following does NOT apply to a customer-centered company?

Companies can identify their competitors from both ________ points of view.

A company that is in a good position to identify new opportunities is a ________ company.

Dell produces and delivers PCs of competitive quality at lower costs. The company constantly aims to achieve low production and distribution costs to win a large market share. Dell utilizes a(n) ________ strategy very effectively.

An industry often contains "good" and "bad" competitors. Good competitors ________.

An advantage of a competitor-centered company is that it ends up simply matching or extending industry practices rather than seeking innovative new ways to create more value for customers.

According to the overall cost leadership competitive strategy, the company works hard to achieve the lowest production and distribution costs.

Discuss the different levels at which competitors can be identified.

Which of the following are examples of close competitors?