Ch 5 Part 1

Question 1

What is the Competitive behavior?

Answer 1

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.

Question 2

What is Multimarket competition?

Answer 2

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

Question 3

What is Competitive dynamics?

Answer 3

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

Question 4

Model of Competitive Rivalry suggests that:
?

Answer 4

• Firms are mutually interdependent.
• Competitors’ actions and responses affect them.

Question 5

Marketplace success is a function of both:

Answer 5

• Individual strategies
• The consequences of their use

Question 6

What is the competitor analysis in Model of Competitive Rivalry?

Answer 6

• Market commonality
• Resource similarity

Question 7

What is the (Drivers of Competitive Behavior) in Model of Competitive Rivalry?

Answer 7

• Awareness
• Motivation
• Ability

Question 8

What is the outcomes of Model of Competitive Rivalry?

Answer 8

• Market position.
• Financial performance.

Question 9

What is the first step the firm takes to be able to predict its competitors’
actions and responses.

Answer 9

competitor analysis

Question 10

Competitor analysis is a technique firms use to understand their competitive environment by
studying competitors’:
?

Answer 10

• Future objectives
• Current strategies
• Assumptions
• Capabilities

Question 11

To complete a competitor analysis, firms study:

Answer 11

• Market commonality
• Resource similarity

Question 12

…….. ……………. 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.

Answer 12

Market commonality

Question 13

Firms competing against one another in several markets engage in……… ………. .

Answer 13

multimarket competition

Question 14

In general, multimarket competition (reduces or increase) competitive rivalry,
but some firms will still compete when the potential rewards (e.g., potential market share gain) are high.

Answer 14

Reduces

Question 15

……….. ………….. is the extent to which the firm’s tangible and intangible resources compare favorably to a competitor’s in terms of type and amount.

Answer 15

Resource similarity

Question 16

Firms with similar types and amounts of resources tend to:

Answer 16

• Have similar strengths and weaknesses.
• Use similar strategies in light of their strengths to pursue what may be similar opportunities in the external environment.

Question 17

Market commonality and resource similarity shape the firm’s:

Answer 17

Awareness

Motivation

Ability

Question 18

Ability refers to the quality of the resources available to the firm to
attack and respond.
• Without available resources (such as …………. capital and ………..), the
firm is not able to attack a competitor or respond to its action.

Answer 18

financial capital and people

Question 19

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

Answer 19

strategic action or a strategic response

Question 20

A …….. ……. or a ……… ………. is a market-based move that firms take to fine-tune a strategy; these actions and responses involve fewer resources and are relatively easy to implement and reverse.

Answer 20

tactical action or a tactical response

Question 21

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

Answer 21

competitive action

Question 22

…….. ………. is a strategic or tactical action the firm takes to counter the effects of a competitor’s competitive action.

Answer 22

competitive response

Question 23

In addition to market commonality, resource similarity, and the drivers of awareness, motivation, and ability, three more specific factors affect the likelihood a competitor will take competitive actions:

Answer 23

1. First-mover benefits
2. Organizational size
3. Quality

Question 24

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

Answer 24

first mover

Question 25

First movers emphasize ……… and ……….. as a path to developing innovative products that customers will value.

Answer 25

research and development

Question 26

First-mover benefits are often critical to a firm’s success in industries:

Answer 26

• Experiencing rapid technological developments • With relatively short product life cycles

Question 27

In addition to earning above-average returns until its competitors respond to its successful competitive action, the first mover can gain:

Answer 27

• The loyalty of customers • Market share

Question 28

Tesla is first mover? T OR F

Answer 28

True

Question 29

First movers tend to:

Answer 29

• Be aggressive • Be willing to experiment with innovation • Take higher yet reasonable levels of risk

Question 30

To be a first mover, the firm must have the readily available resources to:

Answer 30

• Invest significantly in R&D • Rapidly and successfully produce and market stream of innovative products

Question 31

………… ….. makes it possible for firms to have the ability to be first movers.

Answer 31

Organizational slack معلومه: عنده موارد اكثر من ما يستخدم ال exses capasity

Question 32

What is Slack

Answer 32

Slack is the buffer provided by actual or obtainable resources not in use currently and that exceed the minimum resources needed to produce a given level of organizational output.

Question 33

Who is the second mover?

Answer 33

A second mover is a firm that responds to the first mover’s competitive action, typically through imitation

Question 34

The second mover:

Answer 34

• Studies customers’ reactions to product innovations • Tries to find any mistakes the first mover made so that it can avoid them and the problems they created • Has the time to develop processes and technologies that: • Are more efficient than those the first mover used • Create additional value for consumers

Question 35

second move Hasn’t the time to develop processes and technologies that Are more efficient than those the first mover used T or F ?

Answer 35

T

Question 36

The most successful second movers can interpret market feedback with precision in order to respond quickly yet successfully to first movers’ successful innovations. True or false?

Answer 36

True

Question 37

Who is the late mover ?

Answer 37

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.

Question 38

Late movers is : 1- 2-

Answer 38

• Achieve considerably less success than do first and second movers • Require considerable time to understand how to create at least as much customer value as that offered by the first and second movers’ products

Question 39

late movers typically only earn average returns ? T or F

Answer 39

True