Question 1

In pure competition environments, profit margins are generally lower, and sellers focus on creating cost efficiencies to increase profitability.

Accepted Answer

A) True 
 B)False  True

Question 2

Competitor analysis can only identify old opportunities and/or threats, and shows that it is not always possible to learn from competitors.

Accepted Answer

A) True 
 B)False  False

Question 3

Gadgets & Gizmos is a Los Angeles technology company that creates specialized components for its customers needs.Recently Phil, the owner of Gadgets & Gizmos, began to consider expanding into new markets and more specifically globally.What kinds of unique problems are presented by a move into a global market?

Accepted Answer

Governments have a special interest in protecting local companies and their employees from foreign competition.As a result of this, governments tend to use quotas, import fees, and a host of other regulations designed to limit foreign competition in a country.

Question 4

A company's culture is a critical element in competitor analysis.

Accepted Answer

A) True 
 B)False

Question 5

It is important to determine whom the __________________ views as your competitor.

Accepted Answer

A)   Organization
B)   Investor
C)   Customer
D)   Market
E)   Industry

Question 6

Steve Jobs is known for looking at the products that his company is an expert in, recognizing its strengths and using that information to expand into new product lines.This is an example of ____________.

Accepted Answer

A)   Market expansion
B)   Product expansion
C)   Product usage
D)   Indirect competition
E)   Direct competition

Question 7

A new restaurant, Doggy Bag, specializes in a unique dining experience for both humans and their furry companions.While it operates in the restaurant industry, its inventive idea has yet to be copied by anyone else.What kind of an industry structure does this demonstrate?

Accepted Answer

The answer of A new restaurant, Doggy Bag, specializes in...

Question 8

Margarita is the Marketing Manager for What's Up Doc? a doctor referral website.Recently insurance companies have started to offer their own referral services on their websites.Margarita just got back from a Health Tradeshow where she met another manager that works for a hospital referral website.What could Margarita do to defend her existing markets?

Accepted Answer

The answer of Margarita is the Marketing Manager for What's...

Question 9

When you know the goals and objectives of a competitor, you have a pretty good idea of the company's strategy.

Accepted Answer

A) True 
 B)False

Question 10

The primary sources of competitive information are __________________.

Accepted Answer

A)   Company websites
B)   Business publications
C)   Government
D)   Salespeople and customers
E)   All of the above

Question 11

All of the following are factors that affect an industry EXCEPT _____________.

Accepted Answer

A)   Environmental
B)   Process
C)   International
D)   Managerial
E)   Financial

Question 12

Robinson Steelco is a steel company offering standardized products to its customers.Robinson has found it difficult to break out and charge a premium price for its products.This is an example of a(n)______________.

Accepted Answer

A)   Industry slowdown
B)   Differentiated company
C)   Stagnant market
D)   Monopoly
E)   Oligopoly

Question 13

Deon owns a store in his hometown that sells family sized meals of turkeys, hams, casseroles and side dishes.He would be viewed as a _________________ by the well-known national chain that sells very similar products.

Accepted Answer

A)   Potential partner
B)   Non-threatening entity
C)   Threat
D)   Indirect competitor
E)   Direct competitor

Question 14

Power Circuit, a utility company that operates in Northeast U.S.is required to get approval from state regulatory agencies before increasing the price of its service because it is a(n)______________ company.

Accepted Answer

A)   Publicly traded
B)   State owned
C)   Monopoly
D)   International
E)   Bankrupt

Question 15

An underutilized source of competitor information is the company's own customers.

Accepted Answer

A) True 
 B)False

Question 16

_______________ is a third way of defining competitors.Customers often find new uses that alter the original intent or design of a product.

Accepted Answer

A)   Direct competitors
B)   Indirect competitors
C)   Product use
D)   Substitution
E)   None of the above

Question 17

A(n)_____________ exists when a market is controlled by a single company offering one set of products.

Accepted Answer

A)   Monopoly
B)   Oligopoly
C)   Monopolistic competition
D)   Pure competition
E)   None of the above

Question 18

Knowing the company's corporate culture is a poor indicator of potential future strategy.

Accepted Answer

A) True 
 B)False

Question 19

In an oligopoly there are typically ___________ competitors.

Accepted Answer

A)   0-1
B)   1-2
C)   2-3
D)   3-4
E)   4-5

Question 20

Most companies view competitors as those existing at the same level in the supply chain.Why is this not a safe assumption?

Accepted Answer

The answer of Most companies view competitors as those existing...

Exam 6: Understanding Competitors: Analysis to Action

In pure competition environments, profit margins are generally lower, and sellers focus on creating cost efficiencies to increase profitability.

Competitor analysis can only identify old opportunities and/or threats, and shows that it is not always possible to learn from competitors.

A company's culture is a critical element in competitor analysis.

It is important to determine whom the __________________ views as your competitor.

Steve Jobs is known for looking at the products that his company is an expert in, recognizing its strengths and using that information to expand into new product lines.This is an example of ____________.

A new restaurant, Doggy Bag, specializes in a unique dining experience for both humans and their furry companions.While it operates in the restaurant industry, its inventive idea has yet to be copied by anyone else.What kind of an industry structure does this demonstrate?

When you know the goals and objectives of a competitor, you have a pretty good idea of the company's strategy.

The primary sources of competitive information are __________________.

All of the following are factors that affect an industry EXCEPT _____________.

Robinson Steelco is a steel company offering standardized products to its customers.Robinson has found it difficult to break out and charge a premium price for its products.This is an example of a(n) ______________.

Deon owns a store in his hometown that sells family sized meals of turkeys, hams, casseroles and side dishes.He would be viewed as a _________________ by the well-known national chain that sells very similar products.

Power Circuit, a utility company that operates in Northeast U.S.is required to get approval from state regulatory agencies before increasing the price of its service because it is a(n) ______________ company.

An underutilized source of competitor information is the company's own customers.

_______________ is a third way of defining competitors.Customers often find new uses that alter the original intent or design of a product.

A(n) _____________ exists when a market is controlled by a single company offering one set of products.

Knowing the company's corporate culture is a poor indicator of potential future strategy.

In an oligopoly there are typically ___________ competitors.

Most companies view competitors as those existing at the same level in the supply chain.Why is this not a safe assumption?