Question 1

Kodak's film business didn't lose out to direct competitor Fujifilm; it lost out to Sony, Canon, and other digital camera makers, along with a host of digital image developers and online image sharing services. This is an example of ________.

Accepted Answer

A)  a blue ocean strategy 
B)  competitor backlinking 
C)  self-competition 
D)  competitor myopia 
E)  marketing myopia

Question 2

As small companies achieve success, they inevitably move toward more ________ marketing. They adopt more-developed marketing tools and adhere to them closely.

Accepted Answer

A)  ambush 
B)  formulated 
C)  entrepreneurial 
D)  intrepreneurial 
E)  multi-level

Question 3

To plan effective marketing strategies, the company must ignore its competitors.

Accepted Answer

A) True 
 B)False

Question 4

Profitability increases as a business gains share relative to competitors in its ________.

Accepted Answer

A)  higher market 
B)  direct market 
C)  secondary market 
D)  served market 
E)  valued market

Question 5

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.

Accepted Answer

A) True 
 B)False

Question 6

The market subsegment that a company exclusively caters to may dry up, or it might grow to the point that it attracts larger competitors. This is why such companies practice ________.

Accepted Answer

A)  multiple niching 
B)  mass marketing 
C)  overall cost leadership 
D)  low-price strategies 
E)  dumping

Question 7

If a company's aim is to make its own and competing products obsolete and serve customers who want state-of-the-art products and services, it is using a value discipline called ________.

Accepted Answer

A)  overall cost leadership 
B)  product activation 
C)  product binning 
D)  product leadership 
E)  customer intimacy

Question 8

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

Accepted Answer

A)  its strength with its current management 
B)  in what areas it intends to develop further 
C)  how strong it is financially 
D)  how it might react to different competitive actions 
E)  its areas of concern, if any

Question 9

A good competitor plays by its own rules at the expense of the industry as a whole.

Accepted Answer

A) True 
 B)False

Question 10

A company that pursues ________ will react much more strongly to a competitor's cost reducing manufacturing breakthrough than to the same competitor's advertising increase.

Accepted Answer

A)  product differentiation 
B)  low-cost leadership 
C)  customer intimacy 
D)  a middle-of-the-roaders strategy 
E)  product leadership

Question 11

Companies can identify competitors from one of two points of view: ________.

Accepted Answer

A)  manufacturing or selling 
B)  engineering or producing 
C)  consumer or business 
D)  industry or market 
E)  unique or similar

Question 12

Which of the following are examples of close competitors?

Accepted Answer

A)  Applebee's and Subway 
B)  Taco Bell and T.G.I. Friday's 
C)  Pizza Hut and Burger King 
D)  McDonald's and Taco Bell 
E)  McDonald's and Burger King

Question 13

Benchmarking involves comparing the firm's products and processes to those of the competitors to identify best practices to improve quality and performance.

Accepted Answer

A) True 
 B)False

Question 14

The existence of competitors in a market may cause a decrease in total demand.

Accepted Answer

A) True 
 B)False

Question 15

From a(n) ________ point of view, Pepsi might see its competition as Coca-Cola, Dr Pepper, 7UP, and the makers of other soft drink brands. From a(n) ________ point of view, however, the customer really wants "thirst quenching."

Accepted Answer

A)  market; industry 
B)  market; consumer 
C)  industry; competitive 
D)  industry; market 
E)  company's; consumer's

Question 16

Companies that pursue a clear strategy will likely perform well. Firms that do not pursue a clear strategy are called ________.

Accepted Answer

A)  jack-of-all-trades 
B)  middle-of-the-roaders 
C)  niches 
D)  red oceans 
E)  laggards

Question 17

Which is NOT one of the four orientations a company may have?

Accepted Answer

A)  customer 
B)  product 
C)  competitor 
D)  market 
E)  cost

Question 18

When a company provides superior value by leading its industry in price and convenience, it has obtained ________.

Accepted Answer

A)  product leadership 
B)  focus 
C)  operational excellence 
D)  customer intimacy 
E)  differentiation

Question 19

Customers see competitive advantages as customer advantages.

Accepted Answer

A) True 
 B)False

Question 20

An industry often contains "good" competitors and "bad" competitors. Define each term and discuss scenarios with both "good" and "bad" competitors. How might "good" competitors choose to react to "bad" competition?

Accepted Answer

The answer of An industry often contains "good" competitors and...

Exam 18: Creating Competitive Advantage

Kodak's film business didn't lose out to direct competitor Fujifilm; it lost out to Sony, Canon, and other digital camera makers, along with a host of digital image developers and online image sharing services. This is an example of ________.

As small companies achieve success, they inevitably move toward more ________ marketing. They adopt more-developed marketing tools and adhere to them closely.

To plan effective marketing strategies, the company must ignore its competitors.

Profitability increases as a business gains share relative to competitors in its ________.

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.

The market subsegment that a company exclusively caters to may dry up, or it might grow to the point that it attracts larger competitors. This is why such companies practice ________.

If a company's aim is to make its own and competing products obsolete and serve customers who want state-of-the-art products and services, it is using a value discipline called ________.

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

A good competitor plays by its own rules at the expense of the industry as a whole.

A company that pursues ________ will react much more strongly to a competitor's cost reducing manufacturing breakthrough than to the same competitor's advertising increase.

Companies can identify competitors from one of two points of view: ________.

Which of the following are examples of close competitors?

Benchmarking involves comparing the firm's products and processes to those of the competitors to identify best practices to improve quality and performance.

The existence of competitors in a market may cause a decrease in total demand.

From a(n) point of view, Pepsi might see its competition as Coca-Cola, Dr Pepper, 7UP, and the makers of other soft drink brands. From a(n) point of view, however, the customer really wants "thirst quenching."

Companies that pursue a clear strategy will likely perform well. Firms that do not pursue a clear strategy are called ________.

Which is NOT one of the four orientations a company may have?

When a company provides superior value by leading its industry in price and convenience, it has obtained ________.

Customers see competitive advantages as customer advantages.

An industry often contains "good" competitors and "bad" competitors. Define each term and discuss scenarios with both "good" and "bad" competitors. How might "good" competitors choose to react to "bad" competition?