Question 1

On the whole there are more competitive responses to:

Accepted Answer

A)  Strategic actions than to tactical actions 
B)  Tactical actions than to strategic actions 
C)  Buyer pressures than to supplier pressures 
D)  The demands of the top management team than to industry structural pressures

Question 2

Late movers are those firms that:

Accepted Answer

A)  Respond to a competitive action a significant amount of time after the first mover's action and the second mover's response 
B)  Respond to a first mover's competitive action often through imitation or a move designed to counter the effects of the action 
C)  Take an initial competitive action (either strategic or tactical) 
D)  Typically achieve higher-than-average returns because they can imitate the most efficient actor

Question 3

Low levels of competition may be caused by high fixed costs.

Accepted Answer

A) True 
 B)False

Question 4

The benefits of being a first mover are most substantial in fast cycle markets.

Accepted Answer

A) True 
 B)False

Question 5

Identify the competitive risks associated with cooperative strategies.

Accepted Answer

The answer of Identify the competitive risks associated with cooperative...

Question 6

In Japan and the EU,crisis cartels:

Accepted Answer

A)  Involve firms in an industry facing a severe crisis 
B)  Are legally allowed 
C)  A and B above 
D)  Are cartels that are creating a crisis

Question 7

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...

Question 8

Firms operating in the same market,offering similar products and targeting similar customers are competitors.

Accepted Answer

A) True 
 B)False

Question 9

A second mover:

Accepted Answer

A)  Is typically ineffective in its response to the first mover 
B)  Attempts to provide a product with greater customer value than the first mover's product 
C)  Usually incurs higher expenses than the first mover since it must engage in reverse engineering 
D)  Typically has a higher survival rate than first movers which typically take greater risks

Question 10

Offensive competitive tactics include:

Accepted Answer

A)  Threat of retaliation 
B)  Creating barriers to imitation 
C)  Seeking first-mover advantages 
D)  Collaborative tactics

Question 11

The capability to attack in multiple markets throws the firm off balance leaving it vulnerable to rivals and thus reducing value.

Accepted Answer

A) True 
 B)False

Question 12

Competitors are more likely to respond to competitive actions that are taken by:

Accepted Answer

A)  Differentiators 
B)  Larger companies 
C)  First movers 
D)  Market leaders

Question 13

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

Accepted Answer

A)  Aggressive, defensive 
B)  Strategic, tactical 
C)  Quality-based, cost-based 
D)  Market-based, resource-based

Question 14

Explain the rationales for a cooperative strategy under each of the three types of basic market situations (i.e.,slow,standard,and fast cycles).

Accepted Answer

The answer of Explain the rationales for a cooperative strategy...

Question 15

Large firms are likely to initiate more competitive actions along with more strategic actions during a given period.

Accepted Answer

A) True 
 B)False

Question 16

A cooperative strategy:

Accepted Answer

A)  Is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage 
B)  Is a strategy in which firms work together to achieve a shared objective 
C)  Is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets 
D)  Specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets

Question 17

Explicit collusion is exemplified by:

Accepted Answer

A)  Cartels 
B)  Trusts 
C)  Users of game theory 
D)  All of the above

Question 18

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 19

A disadvantage to being a first mover is that a company moves down the experience curve and loses the benefits from its experiences.

Accepted Answer

A) True 
 B)False

Question 20

Firm A may be more successful in imitating Firm B if Firm B:

Accepted Answer

A)  Is competitively aggressive 
B)  Carries out complex actions 
C)  Uses difficult to execute manoeuvres 
D)  None of the above

Exam 10: Competitive Rivalry & Competitive Dynamics

On the whole there are more competitive responses to:

Late movers are those firms that:

Low levels of competition may be caused by high fixed costs.

The benefits of being a first mover are most substantial in fast cycle markets.

Identify the competitive risks associated with cooperative strategies.

In Japan and the EU,crisis cartels:

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

Firms operating in the same market,offering similar products and targeting similar customers are competitors.

A second mover:

Offensive competitive tactics include:

The capability to attack in multiple markets throws the firm off balance leaving it vulnerable to rivals and thus reducing value.

Competitors are more likely to respond to competitive actions that are taken by:

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

Explain the rationales for a cooperative strategy under each of the three types of basic market situations (i.e.,slow,standard,and fast cycles).

Large firms are likely to initiate more competitive actions along with more strategic actions during a given period.

A cooperative strategy:

Explicit collusion is exemplified by:

The chief disadvantage of being a first mover is the:

A disadvantage to being a first mover is that a company moves down the experience curve and loses the benefits from its experiences.

Firm A may be more successful in imitating Firm B if Firm B: