Question 1

A strategy's success is determined not only by the firm's initial competitive actions but also by how well it anticipates competitors' responses to them and by how well the firm anticipates and responds to its competitor's initial actions.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Competitive dynamics refers to the

Accepted Answer

A)   circumstances in which competitors are aware of the degree of their mutual interdependence resulting from market commonality and resource similarity.
B)   set of competitive actions and competitive responses the firm takes to build or defend its competitive advantages and to improve its market position.
C)   total set of actions and responses taken by all firms competing within a market.
D)   ongoing set of competitive actions and competitive responses between competitors as they maneuver for advantageous market position.E) B) and D)
F) All of the above

Question 4

Often, successful imitation of the first mover's innovations allows the second mover to avoid the mistakes and major investments of the first mover.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

Competitors are firms competing in the s...

Question 6

All competitive advantages do not accrue to large-sized firms. A major advantage of smaller firms is that they

Accepted Answer

A)   are more likely to have organizational slack.
B)   can launch competitive actions more quickly.
C)   have more loyal and diverse workforces.
D)   can wait for larger firms to make mistakes in introducing innovative products.E) C) and D)
F) A) and C)

Question 7

____ markets are often described as volatile and innovative.

Accepted Answer

A)   Slow-cycle
B)   Fast-cycle
C)   Standard-cycle
D)   ShelteredE) A) and D)
F) A) and C)

Question 8

Research suggests that a firm with greater multimarket contact is less likely to initiate an attack, but more likely to respond aggressively when attacked.

Accepted Answer

A) True 
 B)False

Question 9

Quality affects the degree of rivalry in that firms lacking quality are likely to me more aggressive in their competitive actions until the quality problems are corrected.

Accepted Answer

A) True 
 B)False

Question 10

Define slow-cycle, fast-cycle and standard cycle markets.

Accepted Answer

In s low-cycle markets, the firm's compe...

Question 11

Firms are likely to imitate the actions of a competitor that is noted for risky, complex, and unpredictable behavior because this is a way to imitate unobservable core competencies.

Accepted Answer

A) True 
 B)False

Question 12

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.E) A) and B)
F) A) and C)

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

A competitive action can be one of two types, either ____ or ____.

Accepted Answer

A)   aggressive, defensive
B)   quality-based, cost-based
C)   strategic, tactical
D)   market-based, resource-basedE) A) and D)
F) B) and C)

Question 15

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

Accepted Answer

A)   have low market dependence.
B)   are late movers.
C)   have low market commonality.
D)   compete against the firm in multiple markets.E) B) and D)
F) None of the above

Question 16

Quality is

Accepted Answer

A)   meeting or exceeding customer expectations in the goods and/or services offered.
B)   only a major factor in the production of luxury goods, such as BMW cars.
C)   an assured way to gain competitive advantage.
D)   a viable trade-off with product cost in gaining a competitive advantage.E) All of the above
F) None of the above

Question 17

The competitive actions and responses in __________ markets are designed to seek large market shares, to gain customer loyalty through brand names, and to carefully control the firm's operations in order to consistently provide the same positive experience for customers.

Accepted Answer

A)   standard-cycle
B)   fast-cycle
C)   slow-cycle
D)   intermediate-cycleE) A) and D)
F) All of the above

Question 18

Firms with ______ market commonality and _____ resource similarity are direct and mutually acknowledged competitors.

Accepted Answer

A)   low; high
B)   low; low
C)   high; high
D)   high; lowE) B) and C)
F) None of the above

Question 19

Competitors are more likely to respond to competitive actions that are taken by

Accepted Answer

A)   differentiators.
B)   larger companies.
C)   first movers.
D)   market leaders.E) A) and B)
F) C) and D)

Question 20

Without quality, the firm's products

Accepted Answer

A)   can compete effectively on the basis of low price.
B)   lack credibility among customers.
C)   must be exported to developing countries, because they are not competitive in the U.S. or developed countries.
D)   are associated with predatory competition.E) C) and D)
F) B) and C)

Exam 6: Competitive Rivalry and Competitive Dynamics Emea Edition

A strategy's success is determined not only by the firm's initial competitive actions but also by how well it anticipates competitors' responses to them and by how well the firm anticipates and responds to its competitor's initial actions.

Correct AnswerverifiedShow Answer

Quality is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Without quality, the firm's products

Correct AnswerverifiedShow Answer

Firms are likely to imitate the actions of a competitor that is noted for risky, complex, and unpredictable behavior because this is a way to imitate unobservable core competencies.

Correct AnswerverifiedShow Answer

Firms with ______ market commonality and _____ resource similarity are direct and mutually acknowledged competitors.

Correct AnswerverifiedShow Answer

Research suggests that a firm with greater multimarket contact is less likely to initiate an attack, but more likely to respond aggressively when attacked.

Correct AnswerverifiedShow Answer

Competitors are more likely to respond to competitive actions that are taken by

Correct AnswerverifiedShow Answer

Competitive dynamics refers to the

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

____ markets are often described as volatile and innovative.

Correct AnswerverifiedShow Answer

Often, successful imitation of the first mover's innovations allows the second mover to avoid the mistakes and major investments of the first mover.

Correct AnswerverifiedShow Answer

Define slow-cycle, fast-cycle and standard cycle markets.

Correct AnswerverifiedIn s low-cycle markets, the firm's compe...View AnswerShow Answer

A competitive action can be one of two types, either ____ or ____.

Correct AnswerverifiedShow Answer

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

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

Quality affects the degree of rivalry in that firms lacking quality are likely to me more aggressive in their competitive actions until the quality problems are corrected.

Correct AnswerverifiedShow Answer

All competitive advantages do not accrue to large-sized firms. A major advantage of smaller firms is that they

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

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

Correct AnswerverifiedShow Answer

The competitive actions and responses in __________ markets are designed to seek large market shares, to gain customer loyalty through brand names, and to carefully control the firm's operations in order to consistently provide the same positive experience for customers.

Correct AnswerverifiedShow Answer

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Firms with __ market commonality and _ resource similarity are direct and mutually acknowledged competitors.

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In s low-cycle markets, the firm's compe...
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A competitive action can be one of two types, either or .

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Competitors are firms competing in the s...
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