Chapter 5

a. FreeForAll's profits depend on holding the majority of the ecommerce hat and tee-shirt market.

Why does it make sense for ecommerce-based FreeForAll to competitively respond after brick-and-mortar based Hatz enters the ecommerce market with the same product offerings? a. FreeForAll's profits depend on holding the majority of the ecommerce hat and tee-shirt market. b. Hatz's profits depend on holding the majority of the ecommerce hat and tee-shirt market. c. FreeForAll's profits depend on its brick-and-mortar locations in the hat and tee-shirt market. d. Hatz's profits depend on its brick-and-mortar locations in the hat and tee-shirt market.

c. competitive action.

A firm seeking to improve its market position or proactively defend its competitive advantage would be engaging in a: a. competitive response. b. strategic action. c. competitive action. d. tactical action.

c. second mover.

A firm that responds to the first mover's competitive action, typically though imitation, is called a: a. first mover. b. late mover. c. second mover. d. last mover.

c. Ability

A new family-owned organic grocer has been successful since its grand opening nearly a year ago. With little competition in the area, the organic grocery has been particularly successful in serving organic food consumers. The grocer has just found out that Whole Foods will be starting construction on a new store nearby. The grocery feels that its family ownership and locally grown foods offerings give it a position in which to take action against the developing Whole Foods. However, as a small business, the organic grocery does not have the financial means to launch a rivalry against Whole Foods. In this instance, the organic grocery is missing which driver of competitive behavior? a. Awareness b. Motivation c. Ability d. The grocery is not missing any driver of competitive behavior

b. slow-cycle market.

A pharmaceutical company has a patented antidepressant that has few side effects, and has dominated the market. The company has slowly been conducting research and development to improve this drug. The slow nature of drug development categorizes the pharmaceutical company as part of a: a. fast-cycle market. b. slow-cycle market. c. standard-cycle market. d. no-cycle market.

d. competitive action.

A strategic response to engaging in competitive rivalry is called a: a. competitive response. b. strategic action. c. tactical action. d. competitive action

d. Fast-cycle market

Apple quickly launches their next wave of innovative iPhones in order to keep up with competitors like Samsung and Microsoft. Imitation is rapid and inexpensive in the smartphone industry. Apple is a part of what kind of market? a. Standard-cycle market b. Slow-cycle market c. Medium-cycle market d. Fast-cycle market

d. competitive actions and responses.

Awareness affects the extent to which the firm understands the consequences of its: a. market commonality and resource similarity. b. competitive rivalry and dynamics. c. competitive motivation and ability. d. competitive actions and responses.

a. competitive behavior.

Awareness, motivation, and ability are drivers of: a. competitive behavior. b. competitive analysis. c. competitive rivalry. d. competitive dynamics

c. competitive behavior.

By introducing Android Pay in response to Apple Pay, Google hopes to build and defend its competitive advantages and improve its market position through: a. competitive rivalry. b. competitive dynamics. c. competitive behavior. d. competitor analysis.

b. Competitor will be less likely to respond because of BAAS's risky behavior.

Car maker, BAAS, is known for its risky competitive behavior, including drastically changing its prices over short time spans. Based on this information, what is the most likely competitor response? a. Competitor will be more likely to respond because of BAAS's risky behavior. b. Competitor will be less likely to respond because of BAAS's risky behavior. c. Competitor will be more likely to respond because of BAAS' stability in the market. d. Competitor will be less likely to respond because of BAAS' stability in the market.

d. competitive action.

Fast food chain, Bob's Bigger Burgers, has just launched a campaign to market its new pound and a half burger against its competitor, Lou's Burgers, who has previously sold the biggest burger at a pound and a quarter. Bob's Bigger Burger's strategic move against Lou's Burgers is a: a. competitive response. b. strategic response. c. tactical response. d. competitive action.

b. rapid and inexpensive

Fast-cycle markets are markets in which the firms' capabilities that contribute to competitive advantages aren't shielded from imitation and where imitation is often __________. a. slow and inexpensive b. rapid and inexpensive c. rapid and expensive d. slow and expensive

b. resource similarity.

FedEx and United Postal Service compete in many of the same markets and have similar types of truck and airplane fleets, similar levels of financial capital, and other similarities. These tangible and intangible resources between the two firms describes the: a. resource differentiation. b. resource similarity. c. market similarity. d. market differentiation.

competitors

Firms operating in the same market, offering similar products, and targeting similar customers are: a. allies. b. competitors. c. multimarket competitors. d. market commonality.

a. market dependence.

FreeForAll is an online retailer for graphic tees and hats. Previously, it was the only mass retailer for such goods. Hatz, an in-store retailer that sells predominantly baseball hats, has just launched an ecommerce site that also features tee-shirts for sale. FreeForAll has decided to respond quickly to Hatz's competitive action. This decision is based on FreeForAll's: a. market dependence. b. competitive dynamics. c. reputation. d. market independence.

c. competitor analysis.

If two well-known shoe stores, Famous Footwear and Journey's, compared their resource similarities and market commonalities, they would find that, aside from competing in the same industry and carrying some of the same shoe brands, they target very different markets. In using market commonalities and resource similarities, either Famous Footwear or Journey's can conduct a: a. SWOT analysis. b. competitive dynamics. c. competitor analysis. d. compare and contrast exercise.

d. dynamics

One constant improvement among smartphones of all brands is camera quality. As soon as Samsung, Google, or Apple introduces an updated phone, the others respond with equal or better quality in their next update. These competitive moves can be encompassed as the competitive _______________ of that market. a. rivalry b. analysis c. behavior d. dynamics

d. Awareness, motivation, ability

Prioritize the three drivers of competitive action ranking their importance from least to most important. a. Ability, motivation, awareness b. Awareness, ability, motivation c. Ability, awareness, motivation d. Awareness, motivation, ability

d. competitor analysis.

Rumor has it a new restaurant is coming to town called Italia Noodles. However, the owners are waiting to compare market commonalities and resource similarities to other local Italian restaurants. Italia Noodles is conducting a: a. tactical action plan. b. competitive action. c. strategic action. d. competitor analysis.

a. markets in which the firm's competitive advantage is shielded from imitation, commonly for long periods of time, and where imitation is costly.

Slow-cycle markets are: a. markets in which the firm's competitive advantage is shielded from imitation, commonly for long periods of time, and where imitation is costly. b. markets in which the firm's capabilities that contribute to its competitive advantages aren't shielded from imitation and where imitation is often rapid and inexpensive. c. markets in which the firm's competitive advantages are partially shielded from imitation, and imitation is moderately costly. d. markets in which the firm's competitive advantage is shielded from imitation, commonly for short periods of time, and where imitation is cheap.

c. markets in which the firm's competitive advantages are partially shielded from imitation, and imitation is moderately costly.

Standard-cycle markets are: a. markets in which the firm's competitive advantages are shielded from imitation, commonly for long periods of time, and where imitation is costly. b. markets in which the firm's capabilities, which contribute to its competitive advantages, aren't shielded from imitation, and where imitation is often rapid and inexpensive. c. markets in which the firm's competitive advantages are partially shielded from imitation, and imitation is moderately costly. d. markets in which the firm's competitive advantages are shielded from imitation, commonly for short periods of time, and where imitation is cheap.

a. market commonality.

The number of markets with which a firm and a competitor are jointly involved, and the degree of importance of the individual markets to each is referred to as: a. market commonality. b. market analysis. c. resource similarity. d. market differentiation.

c. competitive rivalry.

The ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantageous market position is a: a. competitive behavior. b. competitive dynamics. c. competitive rivalry. d. multimarket competition.

b. In slow-cycle markets, firms can shield themselves from imitation.

What is an advantage of being a part of a slow-cycle market as opposed to a fast-cycle market? a. In slow-cycle markets, firms must innovate rapidly in order to stay competitive. b. In slow-cycle markets, firms can shield themselves from imitation. c. In slow-cycle markets, firms can innovate at a slower pace, although it's often expensive. d. In slow-cycle markets, firms can innovate at a faster pace, and it's often inexpensive

c. A firm will not understand its competitor

What is the outcome of a firm not performing a competitor analysis? a. A firm will better understand their competitor b. A firm will be able to defend its competitive market position c. A firm will not understand its competitor d. A firm can find market commonalities

a. Relatively easy to implement and reverse

Which characteristic best describes tactical actions? a. Relatively easy to implement and reverse b. Involves signification resources c. Difficult to implement and reverse d. Counters the effects of a competitor's actions

c. The firm's market position becomes easier to defend.

Which is not a reason for a firm to respond to a competitor's action? a. The action leads to better use of the competitor's capabilities to develop a stronger competitor advantage or an improvement in its market position. b. The action damages the firm's ability to use its core competencies to create or maintain an advantage. c. The firm's market position becomes easier to defend. d. The firm's market position becomes harder to defend.

c. organization's size.

The likelihood of a firm taking competitive action is affected by the: a. organization's structure. b. organization's management. c. organization's size. d. organization's industry.

c. Both compete in the personal computer, tablet, and smartphone industries

Which of these represent a scenario in which Apple and Google participate in multimarket competition with one another? a. Google operates a search engine and Apple offers a television streaming service b. Google offers Glass and a self-driving vehicle c. Both compete in the personal computer, tablet, and smartphone industries d. Each participate in unrelated markets