Exam 18: Creating Competitive Advantage

Market niching is profitable because the company ________.

Although it might seem that the market leader has the most going for it, challengers often have what some strategists call a(n) ________. The challenger observes what has made the leader successful and improves upon it.

Some companies successfully pursue more than one of the three value disciplines at the same time. For example, FedEx excels at operational excellence as well as customer intimacy. However, more companies focus on excelling at a single value discipline while ________ the other two.

Rather than challenging head on, a challenger can make a(n) ________ attack on the competitor's weaknesses or on gaps in the competitor's market coverage.

Which of the following are market challenger strategies?

American Express will do almost anything to build long-term customer loyalty and to capture customer lifetime value. Which of the following competitive marketing strategies is being pursued by American Express?

________ involves first identifying and assessing competitors and then selecting which competitors to attack or avoid.

A runner-up firm that wants to hold its share in an industry without rocking the boat is a ________.

Competitors may serve less-attractive segments or lead to more product differentiation.

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. -Essential-Beauty e-mailed a survey to a group of its most frequent, loyal customers. The survey asked what makeup and skin care characteristics were most important to them. The company's marketing staff then ranked the performance of Essential-Beauty products in each of these categories. Essentials was conducting a(n) ________.

Samsung and Apple actively generate new ideas, relentlessly pursue new solutions, and quickly work to get new products to market. They serve customers who want state-of-the-art products and services, regardless of the costs in terms of price or inconvenience. Which of the following value disciplines is illustrated from this example?

Which of the following statements is true of the approaches to marketing strategy?

A company can become so ________ centered that it loses its even more important focus on maintaining profitable ________ relationships.

A market nicher can most likely specialize along all of the following lines EXCEPT ________.

Although competition is most intense within a strategic group, explain why there is also rivalry among groups. Give examples.

A company's objectives indicate its satisfaction with its current situation and ________.

Explain how a market follower can gain advantage from a market leader.

Tomorrow's leading companies will succeed by seeking out unoccupied positions in uncontested market spaces. Such strategic moves, termed ________, create powerful leaps in value for both the firm and its buyers, creating new demand for new products.

Discuss the steps in analyzing competitors.

Sears and Holiday Inn encountered difficult times because they did not stand out as the lowest in cost, highest in perceived value, or best in service of their primary target market segment. Both companies are ________.