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Exam 5: Competitive Rivalry and Dynamics

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Question 71

Multiple Choice

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In general, firms are more aware of competitors who have similar resources and who

A) have low market dependence.
B) are late movers.
C) have low market commonality.
D) compete against the firm in multiple markets.

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Question 72

Multiple Choice

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The CEO of the Wholesome Food retail grocery chain, which specializes in organic and natural produce and meat, has stated, "The key to success is to find your niche and focus on it, regardless of what anyone else does." The CEO

A) realizes that he must understand competitors in order to predict their competitive actions and responses.
B) understands that he is the market leader in his niche and thus has a sustainable competitive advantage.
C) believes he has placed his firm in a slow-cycle industry where concerns about protecting unique competencies dominate concerns about market share.
D) realizes his firm has such lower resources than other competitors that his chain is "competitively invisible" to them.

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Question 73

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Two firms that have similar resources, but do not share markets would not be direct and mutually acknowledged competitors.

Mighty Mike's, a manufacturer of power tools for the home hobbyist, has seen its main competitor, MyTools, bring out a line of power tools that are smaller sized, lighter weight, and suitable for women and older hobbyists who have weaker hands than the typical male workshop hobbyist. Mighty Mike is waiting to see whether MyTool's new line is a success. Mighty Mike could be classified as a second mover.

____ markets are often described as volatile and innovative.

A competitive action is a strategic or tactical action taken by a firm to gain or defend a competitive advantage or improve its market position.

Wal-Mart has recently opened a store in Alsatia, Missouri. Several local small retailers have decided that choosing not to respond to Wal-Mart's competitive actions is a viable long-term option, because although the companies have high market commonality they have little resource similarity. These small retailers are correct in their decision.

The drivers of competitive behavior are awareness of the competitor, motivation to take action or respond, and the organization's ability in terms of resources and flexibility.

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

Firms with few competitive resources are more likely to

Competitive dynamics refers to the total set of actions and responses taken by all firms competing within a market.

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

Lawsuits over patent and copyright infringements are more common and intense in

Which industry can be LEAST described as a slow cycle market?

Quality begins at the bottom of the organization where employees must create values for quality that permeate the entire organization.

The chief disadvantage of being a first mover is the

Companies in fast-cycle markets need to profit quickly from an innovative product for all of the following reasons EXCEPT

Under the framework of competitive action and response, "ability" refers to an attacking or responding firm's knowledge of the competitive market characteristics.

Which of the following is the most strategic action by Wal-Mart?

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