Exam 11: Competitive Strategy

An airline service provider watches its rivals closely.It studies the potential for reliable, timely, and service-oriented international travel offered by its competitors.In this case, the firm is focusing on the competitors' _____.

In game theory, a set of actions that are always played no matter what a rival chooses to do is referred to as the _____.

Lieme Inc.and Pola Inc.are oligopolistic rivals in the automobile industry.Lieme has staked out a price position that is slightly higher than that of Pola.Even so, if Pola raises its price, Lieme would too, in order to maintain the differential.Which of the following is being exemplified in this case?

Noah, a researcher, identifies various resources and capabilities of an organization that are subjected to rapid obsolescence, easy imitation, and high cost not recouped by value.In this case, Noah is:

Which of the following statements is true about the Nash equilibrium?

Copper Enterprises manufactures industrial machinery.It decides to identify the characteristics of a new firm that offers the same products as Copper.In order to assess how it might respond in the face of rival actions, Copper must develop a(n) _____.

Briefly describe competition under monopoly.

An organization wants to maximize its payoff given the choices of rivals and remove incentive to defect in the sense that no organization can improve its payoffs by changing its choice.Which of the following concepts will help the organization create such a structure?

Which of the following statements is true about strategic groups?

Marcel, the owner and president of a three-star hotel, believes that only competitors within the same strategic group need to be analyzed.Nina, the chief of client services, believes that other groups must also be considered in order to stay ahead of competition.Which of the following situations strengthens Nina's argument?

An organization wants to compete at an international level.It sets the company objectives and the assumptions to reinforce the objectives.Which of the following is being exemplified in this case?

An organization studies the strategies of its competitors closely.At the current stage, it studies factors such as geographic location, characteristics of business model, services provided, and time management.At this stage, the organization is identifying the competitor's _____.

A manufacturing firm maintains its price unless it observes its rival choosing to lower price.Any time the rival lowers price, the firm responds by lowering its own price.This is an example of a _____.

The word "theory" in game theory refers to _____.

Zeal Inc., an electronic goods manufacturer, launches an air conditioner that contributes to the downfall of Ochre Corp., a company struggling to stay in the market amidst bankruptcy.Which of the following concepts is exemplified in this scenario?

Zara, a research analyst, is studying the business decisions of some restaurant owners.During the data analysis stage, she employs a strategic canvas.Which of the following is likely to be her primary reason to employ this tool?

Peach Line Inc., manufacturers of furniture, identifies that its choice of suppliers is its weakness and makes this irrelevant by standardizing the production process irrespective of the source of raw materials.This way, its choice of suppliers does not become the target of competitors.Which of the following is exemplified in this case?

Briefly describe the Nash equilibrium.

A well-established manufacturing firm decides to set the market price of a product just low enough so that a new firm cannot pay the cost of entering a market and eventually be profitable.Which of the following is exemplified in this case?

An analysis that breaks down the structure of a market or industry into its constituent groups is called a(n) _____.