4720 ch 5

Slow-cycle markets

Slow-cycle markets are markets in which the firm's competitive advantages are shielded from imitation, commonly for long periods of time, and where imitation is costly.

Standard-cycle markets

Standard-cycle markets are markets in which the firm's competitive advantages are partially shielded from imitation and imitation is moderately costly.

Sully's Creamery uses farm fresh cream from its own local farm to make all of its ice cream. It has _____ with national ice cream chains such as Baskin-Robbins. high tangible resource similarity low resource similarity low resource similarity in terms of type, but high resource similarity in terms of amount high intangible resource similarity

b

Which of the following is generally true regarding responses to competitive action? Strategic actions commonly receive both strategic and tactical responses. Strategic actions elicit fewer total competitive responses than tactical actions. Strategic and tactical actions generally elicit a similar number of responses. Tactical actions commonly receive both tactical and strategic responses.

b

Which service quality dimension refers to accessibility to customers? Courtesy Convenience Completeness Consistency

b

The likelihood of a firm taking competitive action is affected by the organization's:

size

strategic action or a strategic response

strategic action or a strategic response is a market-based move that involves a significant commitment of organizational resources and is difficult to implement and reverse.

tactical action or a tactical response

tactical action or a tactical response is a market-based move that is taken to fine-tune a strategy; it involves fewer resources and is relatively easy to implement and reverse.

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

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

c

First movers tend to have: lower survival rates than second movers. less organizational slack than second and late movers. higher revenues than second movers. lower survival rates than late movers.

c

General Motors and its competitors are constantly "thinking of tomorrow" in terms of their products. This means that car companies are competing in a: a. slow-cycle market. b. standard-cycle market. c. fast-cycle market. d. stagnant market.

c

In what type of market do firms tend to avoid loyalty to their own products, abandoning them and moving on in response to market needs? Slow-cycle Mixed-cycle Fast-cycle Standard-cycle

c

NanaTech specializes in the sale and support of computers to the home user. CSINetworks services corporate clients, providing internet access, setting up company intranets, and filling all their hardware and software needs. NanaTech and CSINetworks: have high resource similarity. are direct and mutually acknowledged competitors. would not likely be engaged in competitive rivalry. have high market commonality.

c

New J.C. Penney strategies implemented in order to maintain and gain market share are known as: a. competitive rivalry. b. competitive dynamics. c. competitive behavior. d. competitive analysis.

c

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

c

Before the turn of the century, J.C. Penney's operations continued successfully unchanged in the apparel and credit card businesses. J.C. Penney was operating in a: a. medium-cycle market. b. standard-cycle market. c. slow-cycle market. d. fast-cycle market.

b

During its tenure as "America's Favorite Store," J.C. Penney was focused on offering high-quality products at low prices. It was pursuing which business-level strategy? a. Focused differentiation strategy b. Integrated cost leadership/differentiation strategy c. Cost leadership strategy d. Focused cost leadership strategy

b

In the model of competitive reality, what comes directly after competitor analysis? Market commonality Drivers of competitive behavior Competitive rivalry Resource similarity

b

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 _____ of that market. a. competitive rivalry b. competitive dynamics c. competitor analysis d. competitive behavior

b

Research has found that being a first mover is often critical to a firm's success in industries that have: many competitors. short product life cycles. limited resources. slow-cycle markets.

b

Since the recent recession, department stores are starting to compete with discount retailers. Previously, J.C. Penney's competitors were recognized as other mid-tiered retailers. Now, J.C. Penney must include discount retailers when studying its: a. competitive behavior. b. competitive rivalry. c. competitive dynamics. d. competitive analysis.

b

Car companies competing in various market segments, including SUVs, trucks, and compact cars, are referred to as: a. competitive dynamics. b. multimarket competition. c. market commonality. d. fast-cycle markets.

?

competitive action

A competitive action is a strategic or tactical action the firm takes to build or defend its competitive advantages or improve its market position.

A tactical action or a tactical response

A tactical action or a tactical response is a market-based move that is taken to fine-tune a strategy; it involves fewer resources and is relatively easy to implement and reverse.

Multimarket competition

Multimarket competition occurs when firms compete against each other in several product or geographic markets

A 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 previously sold the biggest burger at a pound and a quarter. Bob's Bigger Burgers' strategic move against Lou's Burgers is a: a. competitive action. b. tactical response. c. strategic response. d. competitive response.

a

A firm that takes an action or response in the context of competitive rivalry is called a(n): actor. player. competitor. aggressor.

a

As a result of the lowered profits and the rise of more competitors, J.C. Penney appointed Ron Johnson as CEO, who sought to: a. establish a retailing revolution. b. increase profit margins through higher prices and a more upscale experience. c. rename J.C. Penney to compete with a tight focus on younger shoppers. d. transform J.C. Penney to focus on the drugstore aspect of its business

a

Building a unique or proprietary capability gives a firm competitive advantage and success in a _____ market. slow-cycle mixed-cycle fast-cycle standard-cycle

a

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 _____ and _____. a. rapid; inexpensive b. slow; expensive c. rapid; expensive d. slow; inexpensive

a

In a standard-cycle market, competitive actions and responses are designed to: gain customer loyalty through brand names. maintain moderate market share. introduce innovations. protect proprietary capabilities.

a

J.C. Penney realized its need for more competitive everyday price points based on what data? a. The price customers paid for products over the last year b. Comparison of prices against high-end competitors, such as Macy's c. Customer survey results d. The median income of its U.S. customers

a

RTC Innovations was surprised by the actions taken by its competitor. This resulted from a: competitive blind spot. first-mover surprise. market dependence. predictive analysis.

a

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 rivalry. b. competitive dynamics. c. competitive behavior. d. multimarket competition.

a

is the total set of actions and responses taken by all firms competing within a market. Competitive dynamics Multimarket competition Competitive behavior Competitive rivalry

a

predict the extent and nature of its rivalry with competitors. Based on the information from the video, nearly 50% of U.S. consumers prefer sport utility vehicles. Between U.S.-based car companies, this demonstrates a: a. market commonality. b. resource similarity. c. resource commonality. d. market rivalry.

a

Sully's Creamery has a reputation for high-quality soft-serve ice cream made from farm fresh ingredients, including milk and cream from its own dairy farms. It has successfully operated a number of ice cream parlors within a 25-mile radius of its farm. Recently, Sully's opened two shops in Springdale, a metropolitan area over 100 miles away. Sully's research indicates that most soft-serve shops in Springdale have only one location. Sully can expect the Springdale soft-serve shops to: respond aggressively because of low resource similarity and high market commonality. offer no competitive response because of low market commonality. respond forcefully because of high market dependence. ignore Sully's entrance into the market because of low resource similarity.

c

Sully's Creamery uses farm fresh cream from its local farm to make all of its ice cream. It has several shops in the metro area. It is _____ with national ice cream chains such as Baskin-Robbins. a direct competitor a direct and mutually acknowledged competitor not a direct and mutually acknowledged competitor a direct, but not mutually acknowledged, competitor

c

Which of the following 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 can innovate at a slower pace, although it's often expensive. b. In slow-cycle markets, firms must innovate rapidly in order to stay competitive. c. In slow-cycle markets, firms can shield themselves from imitation. d. In slow-cycle markets, firms can innovate at a faster pace, and it's often inexpensive.

c

A strategic response to engaging in competitive rivalry is called a

competitive action

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

d

Because of multimarket competition and the emergence of more mid-tiered retailers similar to J.C. Penney, profit margins declined, which provided the _____ for J.C. Penney to change its strategy to initiate competitive behavior against its competitors. a. behaviors b. ability c. awareness d. motivation

d

Federal Pharmacies and Bluechip are both national pharmacy chains. Fairlawn Pharmacy is a local pharmacy with six stores in its metro area. Federal is more likely to attack Fairlawn than Bluechip because: they have high market commonality. they have high resource similarity. they have low resource similarity. they have low market commonality.

d

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. a compare-and-contrast exercise. d. a competitor analysis

d

RTC Innovations and Brekan Enterprises have high market commonality. They compete in the same market segments and in the same geographic areas. Brekan is the market leader, and RTC has recently initiated a significant strategic attack to try to gain the lead. How would you expect Brekan to respond? As the market leader, Brekan has little to worry about in this situation and will not waste resources on a major response. Brekan will initiate a strategic attack on the other firms in the industry to take market share away from them. Brekan will wait for the next cycle in the market before deciding whether or not to respond to the attack. Because of their high multimarket contact, Brekan will respond aggressively to protect its position.

d

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

d

Which of the following characteristics best describes tactical actions? a. Counter the effects of a competitor's actions b. Difficult to implement and reverse c. Involve signification resources d. Relatively easy to implement and reverse

d

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

d