Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

First movers can gain a sustained competitive advantage when they reduce their costs through reverse engineering.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) standard-cycle. 
B) fast-cycle. 
C) slow-cycle. 
D) competitive rivalry.

Question 4

Because Coca-Cola,Nestle,and PepsiCo all sell a product (bottled water)that is essentially the same and all three giant companies are engaged in battles for market share using incremental changes in their products and seeking loyalty to brand names,it is most likely that the bottled water market is a(n)

Accepted Answer

A) slow-cycle market 
B) standard-cycle market. 
C) fast-cycle market. 
D) intermediate-cycle market.

Question 5

relates to the gains or losses a firm will experience if it attacks a rival or responds to an attack by a rival.

Accepted Answer

A) Motivation 
B) Awareness 
C) Responsiveness 
D) Ability

Question 6

Which of the following statements is FALSE?

Accepted Answer

A) First movers tend to take higher risks than second and later movers. 
B) First movers tend to have significantly higher revenues than second movers. 
C) First movers have lower survival rates than second and late movers. 
D) First movers tend to have more organizational slack than later movers.

Question 7

The more dependent a firm is on its market,the more aggressively it will defend it from another competitor.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is TRUE of Walmart?

Accepted Answer

A) Walmart has an unusual amount of flexibility for a large firm. 
B) Walmart's success is largely due to the fact it has little market commonality with other industry firms. 
C) Decision-making responsibility is centered at its Arkansas headquarters, which allows the firm to respond quickly to competitive attacks. 
D) Walmart's advantage lies in its ability to "think big."

Question 9

The chief disadvantage of being a first mover is the

Accepted Answer

A) high degree of risk. 
B) high level of competition in the new marketplace. 
C) inability to earn above-average returns unless the production process is very efficient. 
D) difficulty of obtaining new customers.

Question 10

Case Scenario 3: The Pet Food Industry.
The pet food industry is composed primarily of six market segments: dry dog food, dry cat food, moist dog food, moist cat food, canned dog food, and canned cat food. Five large firms dominate the market and each has some market share in all segments, and the leading share in at least one segment. The largest firm participates solely in the pet food industry, while the next four firms are actually subsidiaries of some of the world's largest food and consumer products companies. Top management of these larger firms have made public statements that suggest they each see themselves as future leaders of the pet food industry. All five have acquired comparable skills in terms of manufacturing and marketing. Two small firms also participate in the industry, but these players are relatively weak and compete in just two of the six segments; the pet food industry is the only industry in which they operate. Inputs to the industry are basic commodities and there is no real threat of substitute products except across segments and price points. The industry is growing slowly, barely keeping up with the rate of inflation. Barriers to entry are enormous when pet food companies can gain scale economies in production coupled with aggressive marketing, though even then these coordinated actions may only yield average industry profitability. Any firm can increase its market share only to the extent that another firm's share is decreased.
-(Refer to Case Scenario 3). The pet food industry is best characterized as an example of

Accepted Answer

A)  slow-cycle markets. 
B)  standard-cycle markets. 
C)  fast-cycle markets. 
D)  neither slow-cycle, standard-cycle, nor fast-cycle markets.

Question 11

Large firms with significant slack resources (i.e.,are able to launch a greater number of competitive actions)but who remain flexible and act like small firms (i.e.,are able to launch a variety of actions)will be more successful against rivals.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Competitive rivalry has the most effect on the firm's strategies than the firm's other strategies.

Accepted Answer

A) business-level 
B) corporate-level 
C) acquisition 
D) international

Question 14

Goods or services in standard-cycle markets reflect

Accepted Answer

A) organizations that serve a mass market. 
B) numerous first mover advantages. 
C) an inability to sustain a competitive advantage except for brief periods of time. 
D) competitive advantages that are shielded from imitation.

Question 15

Firms with few competitive resources are more likely to

Accepted Answer

A) not respond to competitive actions. 
B) respond quickly to competitive actions. 
C) delay responding to competitive actions. 
D) respond to strategic actions, but not to tactical actions.

Question 16

Case Scenario 2: Plasco.
Plasco is a $3 billion U.S.-based manufacturer of flexible plastic products like trash cans, reheatable and freezable food containers, and a broad range of other plastic storage containers designed for home and office use. Historically, Plasco has been the category killer for most of its products and has devoted tremendous resources to new product development on an ongoing basis-this research intensity has allowed the company to release, on average, a new product every day over the past 5 years. Despite its past strength and high brand awareness, Plasco's profitability has been eroded by dramatic increases in the cost of plastic resin, the primary input into its plastic products. Moreover, the retail channel has experienced rapid consolidation resulting in a shift in the balance of power from branded manufacturers like Plasco, to strong retailers like Walmart, who in turn have been unwilling to help Plasco absorb the higher resin costs. Enhancing Walmart's power is the fact that it can always turn to alternative high-volume sources of consumer plastic products like Sterlite. Further hampering Plasco's recovery is the emergence of feisty little foreign competitors like Zig Industries, a $250 million Israeli firm that has begun to take part of Plasco's market share in plastic toolboxes. Ironically, Plasco was the first company to offer plastic toolboxes some 20 years ago. This innovation changed the market dramatically and Plasco's first mover strategy rewarded it with a rapidly growing new segment and a dominant market position. Today, Plasco's toolboxes are viewed as rather boring, while Zig's products are ingeniously designed to catch the customer's eye in the aisle (better merchandising the product)and capture their interest (and pocketbook)with many new and novel features. Zig is also able to provide this new line of toolboxes at between 10 percent to 15 percent less than Plasco.
-(Refer to Case Scenario 2). Although Plasco was the first mover in plastic toolboxes several years ago,its competitor Zig has gained market share by building brand loyalty to its boxes,which are viewed as more attractive and have novel features. The characteristics of this market are most similar to a standard-cycle market.

Accepted Answer

A) True 
 B)False

Question 17

Fast-cycle markets are characterized by "generational products," which start out with a substantial technological advance in the performance of a product category followed by incremental technological advances as new generations of products are introduced.

Accepted Answer

A) True 
 B)False

Question 18

Which company below committed significant resources to enter the information services market and,given its success,was imitated by other competitors?

Accepted Answer

A) Compaq 
B) IBM 
C) HP 
D) Dell

Question 19

Sustained competitive advantage is most achievable in a______market.

Accepted Answer

A) slow-cycle 
B) medium-cycle 
C) standard-cycle 
D) fast-cycle

Question 20

Define competitive actions and responses and explain the two types of competitive actions and responses.

Accepted Answer

The answer of Define competitive actions and responses and explain...

Exam 5: Competitive Rivalry and Competitive Dynamics.

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

First movers can gain a sustained competitive advantage when they reduce their costs through reverse engineering.

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

relates to the gains or losses a firm will experience if it attacks a rival or responds to an attack by a rival.

Which of the following statements is FALSE?

The more dependent a firm is on its market,the more aggressively it will defend it from another competitor.

Which of the following is TRUE of Walmart?

The chief disadvantage of being a first mover is the

Large firms with significant slack resources (i.e.,are able to launch a greater number of competitive actions)but who remain flexible and act like small firms (i.e.,are able to launch a variety of actions)will be more successful against rivals.

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

Competitive rivalry has the most effect on the firm's strategies than the firm's other strategies.

Goods or services in standard-cycle markets reflect

Firms with few competitive resources are more likely to

Fast-cycle markets are characterized by "generational products," which start out with a substantial technological advance in the performance of a product category followed by incremental technological advances as new generations of products are introduced.

Which company below committed significant resources to enter the information services market and,given its success,was imitated by other competitors?

Sustained competitive advantage is most achievable in a______market.

Define competitive actions and responses and explain the two types of competitive actions and responses.