Exam 5: Competitive Rivalry and Competitive Dynamics

All competitive advantages do not accrue to large-sized firms. A major advantage of smaller firms is that they:

Extensive market commonality guarantees intense competition in an industry.

Competitors are more likely to respond to competitive actions that are taken by:

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

Coca Cola and PepsiCo compete across a number of products (e.g., soft drinks, bottled water) and geographic markets (U.S. and foreign markets) indicating that both companies have market commonality.

The larger the resources of a firm taking a competitive action compared with the resources of the other firms in the industry, the ____ the response will be of these other firms.

The flat-panel television market where prices have come down and competition has become more stable is best characterized as:

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(n):

On the whole there are more competitive responses to:

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.

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

The ability of Disney to maintain its competitive advantage through proprietary rights to its characters would be severely weakened if:

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

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

Awareness tends to be greatest when firms have highly similar resources and compete in multiple markets.

Which organization has the highest market dependence?

The need for quality products and services is so high that quality alone can assure a firm that it will achieve strategic competitiveness and earn above-average returns.

In general, strategic actions elicit fewer competitive responses than do tactical actions.

What are the advantages and disadvantages of being a first mover, second mover, and late mover?

Market commonality is concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each.