Question 1

If a company is a market leader in one category, and a market challenger or market nicher in other categories, it will follow ________ strategies for each category.

Accepted Answer

A)  different 
B)  the same 
C)  unique 
D)  multiple 
E)  complex

Question 2

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 3

At the narrowest level, a company can define its competitors as other companies offering similar products and services to the same customers at similar prices.

Accepted Answer

A) True 
 B)False

Question 4

Nintendo, producer of the Wii video game console, might define its competitors as other makers of physically interactive video games. But from a(n) ________ point of view, it would include all firms making physically interactive recreational products.

Accepted Answer

A)  industry 
B)  market 
C)  segment 
D)  niche 
E)  interdependent

Question 5

A competitor analysis requires the assessment of all of the following EXCEPT the competitors' ________.

Accepted Answer

A)  objectives 
B)  organizational hierarchy 
C)  strategies 
D)  strengths and weaknesses 
E)  reaction patterns

Question 6

Discuss two ways a market challenger can best attack the chosen competitor and achieve its strategic objectives. Explain when a challenger should use these attacks and provide examples of companies that have used these methods.

Accepted Answer

The answer of Discuss two ways a market challenger can...

Question 7

Explain how the United States Postal Service has "competitor myopia."

Accepted Answer

The answer of Explain how the United States Postal Service...

Question 8

Customers see competitive advantages as customer advantages.

Accepted Answer

A) True 
 B)False

Question 9

Country Kitchen and Perkins are both a chain of family restaurants featuring diner-like menus with reasonably priced items. These companies are in the same ________.

Accepted Answer

A)  focus group 
B)  control group 
C)  strategic group 
D)  target group 
E)  experimental group

Question 10

An example of a company exhibiting a blue ocean strategy is ________.

Accepted Answer

A)  Amazon's online shopping convenience 
B)  a Starbucks opening in the same vicinity of an independent coffee house 
C)  Nike's brand image of the "swoosh" 
D)  Whirlpool's full line of medium-priced, energy-saving appliances 
E)  the first digital tablet iPad released by Apple

Question 11

Which of the following are value discipline strategies?

Accepted Answer

A)  operational excellence, overall cost leadership, and differentiation 
B)  customer intimacy, operational excellence, and focus 
C)  employee relations, product leadership, and overall cost leadership 
D)  product leadership, customer intimacy, and focus 
E)  operational excellence, customer intimacy, and product leadership

Question 12

Market leaders can expand the market by ________ and more usage of the product.

Accepted Answer

A)  identifying competitors 
B)  initiating monopolistic practices 
C)  developing new users 
D)  ensuring users adhere to higher standards 
E)  initiating new rules for product users

Question 13

Many approaches to developing effective competitive marketing strategies exist. There may be ________ between the formulated side of marketing and the creative side, as creativity and passion help build and maintain success.

Accepted Answer

A)  collaboration 
B)  strong disagreements 
C)  managerial conflicts 
D)  productive meetings 
E)  constant tension

Question 14

Porsche is a German automobile manufacturer that competes against BMW and Audi, but only in the sports car and SUV segments of the automobile market. Porsche utilizes a(n) ________ strategy.

Accepted Answer

A)  overall cost leadership 
B)  focus 
C)  middle-of-the-roaders 
D)  market segmentation 
E)  blue ocean

Question 15

Discuss the four evolving company orientations. Which orientation is considered most successful and why?

Accepted Answer

The answer of Discuss the four evolving company orientations. Which...

Question 16

Which of the following is most critical for successful niching?

Accepted Answer

A)  catering to global markets 
B)  buzz marketing 
C)  follow-up 
D)  specialization 
E)  mass appeal of one idea

Question 17

Bosch is a German firm that manufactures home appliances such as dishwashers, ovens, and ranges. It competes with companies such as GE Elite and LG. Bosch is perceived as the class of the industry. Bosch pursues a(n) ________ strategy.

Accepted Answer

A)  focus 
B)  blue ocean 
C)  overall cost leadership 
D)  differentiation 
E)  middle-of-the-road

Question 18

________ is the process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance.

Accepted Answer

A)  Segmenting 
B)  Positioning 
C)  Sales promotion 
D)  Benchmarking 
E)  Publicity

Question 19

Which of the following is a market leader strategy?

Accepted Answer

A)  expanding market share 
B)  multiple niching 
C)  full frontal attack 
D)  following at a distance 
E)  following closely

Question 20

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.

Accepted Answer

A)  customer lifetime value 
B)  customer equity 
C)  value innovation 
D)  market segmentation 
E)  customer intimacy

Exam 18: Creating Competitive Advantage