Exam 5: Competitive Rivalry and Competitive Dynamics

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?

A tactical competitive action involves a significant commitment of specific and distinctive organizational resources.

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

Goods or services in standard-cycle markets reflect:

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

Competitive dynamics refers to the:

Define slow-cycle, fast-cycle, and standard cycle markets.

Bayou Belle Water sells water drawn only from a single artesian well in Southern Louisiana. It has a loyal following in its region. Because Bayou Belle markets the water, just as Coca-Cola, Nestle, and PepsiCo do, Bayou Belle has high resource similarity with these international firms.

Quality begins in marketing an organization where employees must create a perceived value of quality.

A firm with a reputation as a price predator (an actor that frequently reduces prices to gain or maintain market share) generates few responses to its pricing tactical actions.

Even if the effects of a competitor's strategic action on the focal firm are significant (e.g., loss of market share), little response is likely from that firm.

Which pair of firms has the LEAST resource similarity?

Without quality, the firm's products:

What is market commonality? What is resource similarity? How are these concepts combined to identify the level of competition between two firms?

First movers are:

____ and ____ describe the situation in which organizations are direct competitors and are fully aware of the competition.

Late movers are those firms that:

To be a first mover, the firm must have readily available resources to invest in R&D as well as to rapidly and successfully produce and market a stream of innovative products.

Under the framework of competitive action and response, "ability" refers to an attacking or responding firm's knowledge of the competitive market characteristics.

Mighty Mike's, a manufacturer of power tools for the home hobbyist, has seen its main competitor, MyTools, introduce a line of power tools that are smaller sized, lighter weight, and suitable for women and older hobbyists who have weaker hands than the typical male workshop hobbyist. Mighty Mike is waiting to see whether MyTools' new line is a success. Mighty Mike could be classified as a second mover.