Question 1

A firm is likely to respond to an attack by a competitor in all of the following situations EXCEPT

Accepted Answer

A)   the attack is by a price predator.
B)   the attack makes the firm's market position less defensible.
C)   the attack damages the firm's ability to use its capabilities.
D)   the attack improves the competitor's market position.

Question 2

Patent laws and regulatory requirements such as required FDA (Food and Drug Administration) approval to launch new products shield pharmaceutical companies' positions in this slow-cycle market.

Accepted Answer

A) True 
 B)False

Question 3

Extensive market commonality guarantees intense competition in an industry.

Accepted Answer

A) True 
 B)False

Question 4

Even if the effects of a competitor's strategic action on the focal firm are significant (e.g., loss of market share), little response is likely from that firm.

Accepted Answer

A) True 
 B)False

Question 5

The global automobile producing industry has high market commonality and high resource similarity, and are aware, motivated, and have the ability to compete for market share in each segment and country they have entered (Chapter 5 Strategic Focus).

Accepted Answer

A) True 
 B)False

Question 6

Competitive rivalry is the contest to be the first mover in an international market.

Accepted Answer

A) True 
 B)False

Question 7

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 8

To be a first mover, the firm must have readily available resources to invest in R&D as well as to rapidly and successfully produce and market a stream of innovative products.

Accepted Answer

A) True 
 B)False

Question 9

Define competitors, competitive rivalry, competitive behavior, and competitive dynamics.

Accepted Answer

Competitors are firms competing in the s...

Question 10

What factors contribute to the likelihood of a response to a competitive action?

Accepted Answer

In general, a firm is more likely to res...

Question 11

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 12

Walt Disney's focus on ____ is typical of a slow-cycle market.

Accepted Answer

A)   innovation
B)   total quality
C)   proprietary rights
D)   economies of scale

Question 13

Research suggests that a firm with greater multimarket contact is _______ likely to initiate and attack, and _____ likely to respond aggressively when attacked.

Accepted Answer

A)   more; more
B)   less; more
C)   less; less
D)   more; less

Question 14

A firm with a reputation as a price predator (an actor that frequently reduces prices to gain or maintain market share) generates few responses to its pricing tactical actions.

Accepted Answer

A) True 
 B)False

Question 15

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 16

In the The Chapter 5 Strategic Focus, rivals (Amazon, Oracle, HP and Dell)  in the cloud computing market have competitive advantages that are __________________.

Accepted Answer

A)   shielded from imitation
B)   partially shielded from imitation
C)   sustainable for long periods of time
D)   not shielded from imitation

Question 17

Which of the following is an example of a strategic action?

Accepted Answer

A)   a "two movies for the price of one" campaign by Blockbuster Video
B)   use of product coupons by a local grocer
C)   entry into the European market by Home Depot
D)   fare increases by Southwest Airlines

Question 18

According to the Chapter 5 Strategic Focus, the global automobile producing industry has high market commonality but low resource similarity.

Accepted Answer

A) True 
 B)False

Question 19

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 20

Both ____ and ____ affect the awareness and motivation of a firm to undertake actions and responses.

Accepted Answer

A)   first-mover advantages, corporate size
B)   market commonality, resource similarity
C)   management capabilities, competitive analysis
D)   speed of management decisions, management actions

Exam 5: Competitive Rivalry and Competitive Dynamics

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.

Correct AnswerverifiedShow Answer

The global automobile producing industry has high market commonality and high resource similarity, and are aware, motivated, and have the ability to compete for market share in each segment and country they have entered (Chapter 5 Strategic Focus).

Correct AnswerverifiedShow Answer

Which of the following is an example of a strategic action?

Correct AnswerverifiedShow Answer

Both ____ and ____ affect the awareness and motivation of a firm to undertake actions and responses.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A firm is likely to respond to an attack by a competitor in all of the following situations EXCEPT

Correct AnswerverifiedShow Answer

According to the Chapter 5 Strategic Focus, the global automobile producing industry has high market commonality but low resource similarity.

Correct AnswerverifiedShow Answer

Which of the following statements is FALSE?

Correct AnswerverifiedShow Answer

Walt Disney's focus on ____ is typical of a slow-cycle market.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A firm with a reputation as a price predator (an actor that frequently reduces prices to gain or maintain market share) generates few responses to its pricing tactical actions.

Correct AnswerverifiedShow Answer

Even if the effects of a competitor's strategic action on the focal firm are significant (e.g., loss of market share), little response is likely from that firm.

Correct AnswerverifiedShow Answer

Competitive rivalry is the contest to be the first mover in an international market.

Correct AnswerverifiedShow Answer

In the The Chapter 5 Strategic Focus, rivals (Amazon, Oracle, HP and Dell) in the cloud computing market have competitive advantages that are __________________.

Correct AnswerverifiedShow Answer

To be a first mover, the firm must have readily available resources to invest in R&D as well as to rapidly and successfully produce and market a stream of innovative products.

Correct AnswerverifiedShow Answer

Extensive market commonality guarantees intense competition in an industry.

Correct AnswerverifiedShow Answer

Research suggests that a firm with greater multimarket contact is _______ likely to initiate and attack, and _____ likely to respond aggressively when attacked.

Correct AnswerverifiedShow Answer

Define competitors, competitive rivalry, competitive behavior, and competitive dynamics.

Correct AnswerverifiedCompetitors are firms competing in the s...View AnswerShow Answer

Patent laws and regulatory requirements such as required FDA (Food and Drug Administration) approval to launch new products shield pharmaceutical companies' positions in this slow-cycle market.

Correct AnswerverifiedShow Answer

What factors contribute to the likelihood of a response to a competitive action?

Correct AnswerverifiedIn general, a firm is more likely to res...View AnswerShow Answer

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Both and affect the awareness and motivation of a firm to undertake actions and responses.

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Research suggests that a firm with greater multimarket contact is ___ likely to initiate and attack, and _ likely to respond aggressively when attacked.

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Competitors are firms competing in the s...
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In general, a firm is more likely to res...
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