WPC 480 Chapter 5

Which of the following is the outcome for a firm that does NOT perform a competitor analysis

A firm will not understand its competitor.

Which of the following is NOT a reason for a firm to respond to a competitor's action?

The firm's market position becomes easier to defend.

J.C. Penney realized its need for more competitive everyday price points based on what data?

The price customers paid for products over the last year

The ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantageous market position is:

a competitive rivalry.

Car companies competing in various market segments, including SUVs, trucks, and compact cars, are referred to as:

multimarket competition.

A firm that responds to the first mover's competitive action, typically though imitation, is called a:

second mover.

If General Motors releases a new pick-up truck, which competitor should the firm be aware of for competitive responses?

Ford

FreeForAll is an online retailer for graphic T-shirts 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 e-commerce site that also features T-shirts for sale. FreeForAll has decided to respond quickly to Hatz's competitive action. This decision is based on FreeForAll's:

market dependence.

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.

motivation

multimarket competition

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

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 _____.

rapid; inexpensive

competitive dynamics

refer to all competitive behaviors—that is, the total set of actions and responses taken by all firms competing within a market.

FedEx and United Postal Service (UPS) 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 describe the:

resource similarity.

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

size.

A pharmaceutical company has a patented antidepressant that has few side effects and dominates the market. The company has slowly been conducting research and development (R&D) to improve this drug. The slow nature of drug development categorizes the pharmaceutical company as part of a _____ market.

slow-cycle

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:

standard-cycle market.

The emergence of online retailing has changed the way J.C. Penney and its rivals compete. J.C. Penney has responded by:

building its online presence.

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.

competitive dynamics

In order to stay ahead of the competition, car companies must study ______________ to predict the competitive actions and responses their competitors are likely to take.

competitive rivalry

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:

competitive rivalry.

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:

competitor analysis.

To understand the competitive environment of the small car market, including market commonalities and resource similarities, General Motors should perform a:

competitor analysis.

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

competitors

strategic action

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

strategic response

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

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.

late mover

is a firm that responds to a competitive action a significant amount of time after the first mover's action and the second mover's response.

second mover

is a firm that responds to the first mover's competitive action, typically through imitation.

first mover

is a firm that takes an initial competitive action in order to build or defend its competitive advantages or to improve its market position.

competitive action

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

market commonality

is concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each.

Resource similarity

is the extent to which the firm's tangible and intangible resources are comparable to a competitor's in terms of both type and amount.

Competitive rivalry

is the ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantageous market position.

Competitive behavior

is the set of competitive actions and responses a firm takes to build or defend its competitive advantages and to improve its market position.

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:

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:

market commonality.

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?

Integrated cost leadership/differentiation strategy

New J.C. Penney strategies implemented in order to maintain and gain market share are known as:

competitive behavior.

A new family-owned organic grocery 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 to 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 food 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?

Ability

Prioritize the three drivers of competitive action, ranking their importance from least to most important.

Awareness, motivation, ability

Which of the following represents a scenario in which Apple and Google participate in multimarket competition with one another?

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

Car maker BAAS is known for its risky competitive behavior, including drastically changing its prices over short time spans. Based on this information, which of the following is the most likely competitor response?

Competitors will be less likely to respond because of BAAS' risky behavior.

To compete in the new competitive environment after the recession, J.C. Penney's new strategy utilized sales data from previous years to determine the company's everyday low prices. This was indicative of the company's focus on which strategy?

Cost leadership

tactical action

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.

Before the most recent recession, J.C. Penney, as a mid-tiered retailer that sold clothing, home goods, and other product lines, was in competition with:

Dillard's.

Why does it make sense for e-commerce-based FreeForAll to competitively respond after brick-and-mortar-based Hatz enters the e-commerce market with the same product offerings?

FreeForAll's profits depend on holding the majority of the e-commerce hat and T-shirt market

Which of the following is an advantage of being a part of a slow-cycle market as opposed to a fast-cycle market?

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

competitive response

Is a strategic or tactical action the firm takes to counter the effects of a competitor's competitive action.

Which of the following characteristics best describes tactical actions?

Relatively easy to implement and reverse

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 competitor analysis.

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.

competitors

are firms operating in the same market, offering similar products, and targeting similar customers

Standard-cycle markets

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

Fast-cycle markets

are markets in which the firm's capabilities that contribute to competitive advantages aren't shielded from imitation and where imitation is often rapid and inexpensive.

A firm seeking to improve its market position or proactively defend its competitive advantage would be engaging in a:

competitive action

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:

competitive action.

A strategic response to engaging in competitive rivalry is called a:

competitive action.

Awareness affects the extent to which the firm understands the consequences of its:

competitive actions and responses.

Standard-cycle markets are markets in which the firm's:

competitive advantages are partially shielded from imitation and where imitation is moderately costly.

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.

Awareness, motivation, and ability are drivers of:

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:

competitive behavior.

As a result of the lowered profits and the rise of more competitors, J.C. Penney appointed Ron Johnson as CEO, who sought to:

establish a retailing revolution

quality

exists when the firm's goods or services meet or exceed customers' expectations.

Apple quickly launches its next wave of innovative iPhones in order to keep up with competitors, such as Samsung and Microsoft. Imitation is rapid and inexpensive in the smartphone industry. Apple is a part of a _____ market

fast-cycle

General Motors and its competitors are constantly "thinking of tomorrow" in terms of their products. This means that car companies are competing in a:

fast-cycle market.