Ch 5 Part 2

Question 1

An organization’s size affects the likelihood it will take competitive actions as well as the …….. and ……. of those actions.

Answer 1

types and timing

Question 2

Large firms or Small firms ?
Is
typically have a greater amount of slack resources that allows them to initiate a larger total number of competitive actions and strategic actions during a given period.

Answer 2

Large firms

Question 3

……. exists when the firm’s products meet or exceed customers’ expectations.

Answer 3

Quality

Question 4

In quality Customers will :

Answer 4

• Will not buy a product or use a service until they believe it can satisfy at least their base-level expectations in terms of quality dimensions that are important to them

Question 5

Customers Will not buy a product or use a service until they believe it can satisfy at least their base-level expectations in terms of quality dimensions that are important to them ?
True or false?

Answer 5

True

Question 6

Quality is a base denominator for:

Answer 6

• Competing successfully in the global economy
• Achieving competitive parity, at a minimum

Question 7

Quality is a necessary but insufficient condition for achieving an advantage ?
True or False?

Answer 7

True

Question 8

In general, a firm is likely to respond to a competitor’s action when either:
1

Answer 8

•The action damages the firm’s ability to use its core competencies to create or maintain an advantage.

Question 9

In addition to market commonality, resource similarity, and awareness, motivation, and ability, firms evaluate three other factors to predict how a competitor is likely to respond to competitive actions:

Answer 9

1. Type of competitive action
2. Actor’s reputation
3. Market dependence

Question 10

In general, the number of tactical responses firms take exceed the number of strategic responses they take, because:
1
2
3

Answer 10

• Strategic responses involve a significant commitment of resources.
• Strategic responses are difficult to implement and reverse.
• The time needed to implement a strategic action and to assess its effectiveness can delay the competitor’s response to that action.

Question 11

An actor is the firm taking an action or a response.
True or false?

Answer 11

True

Question 12

Reputation is the positive or negative attribute ascribed by one rival to another based on past competitive behavior ?
T or F

Answer 12

T

Question 13

…… ……. denotes the extent to which a firm derives its revenues or profits from a particular market.

Answer 13

Market dependence

Question 14

competitors with low market dependence are likely to respond strongly to attacks threatening their market position ?
T or F

Answer 14

F
competitors with high market dependence are likely to respond strongly to attacks threatening their market position

Question 15

Competitive dynamics differ in slow-, fast-, and standard- cycle markets

Answer 15

L

Question 16

The sustainability of the firm’s competitive advantages differs by market type.

Answer 16

L

Question 17

What is Slow-cycle markets ?

Answer 17

Slow-cycle markets are markets in which competitors lack the ability to imitate the focal firm’s competitive advantages that commonly last for long periods, and where imitation would be costly.

Question 18

In a slow-cycle market:
1,2,3,4

Answer 18

• Firms may be able to sustain a competitive advantage over longer periods.
• Building a unique and proprietary capability produces a competitive advantage and success.
Examples: Copyrights and patents
• The competitive actions and responses a firm takes are oriented to protecting, maintaining, and extending that advantage.
• Major strategic actions usually carry less risk.

Question 19

In slow-cycle markets, the competitive advantage generated by a firm gradually erodes over time.
T or F

Answer 19

True

Question 20

How Gradual Erosion of a Sustained Competitive Advantage

Answer 20

.

Question 21

Fast-cycle markets mean

Answer 21

Fast-cycle markets are markets in which competitors can imitate the focal firm’s capabilities that contribute to its competitive advantages and where that imitation is often rapid and inexpensive.

Question 22

In a fast-cycle market:

Answer 22

• Competitive advantages are not sustainable.

Question 23

In fast-cycle markets, competition is substantial as firms concentrate on developing a series of temporary competitive advantages.
True or false?

Answer 23

True

Question 24

What firms do in Fast-Cycle Markets with competitive advantage?
3

Answer 24

1- The firm launches a product to achieve a competitive advantage.
2- It then exploits that advantage for as long as possible.
3- It also tries to develop another competitive advantage before competitors can respond to the first one.

Question 25

What’s happened in Standard-cycle markets?

Answer 25

Standard-cycle markets are markets in which some competitors may be able to imitate the focal firm’s competitive advantages and where that imitation is moderately costly.

Question 26

Firms imitate competitive actions and responses in standard-cycle markets to: 3

Answer 26

• Seek large market shares • Gain customer loyalty through brand names • Control a firm’s operations carefully

Question 27

The competition for market share is intense in standard-cycle markets because of: ? 3reason

Answer 27

• Large volumes • The size of mass markets • The need to develop scale economies

Question 28

His q مهم

Answer 28

..

Question 29

Who are competitors? How are competitive rivalry, competitive behavior, and competitive dynamics defined in the chapter?

Answer 29

1- Competitors are firms operating in the same market, offering similar products, and targeting similar customers. 2- 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. Competitive dynamics is the total set of competitive actions and responses taken by all firms competing within a market.

Question 30

1- What is market commonality? 2- What is resource similarity? 3- In what way are these concepts the building blocks for a competitor analysis?

Answer 30

1- market commonality refers to the degree to which two or more competitors compete in the same markets or market segments. 2- Resource similarity is the extent to which the firm’s tangible and intangible resources compare favorably to a competitor’s in terms of type and amount. 3-In the context of competitive rivalry and competitive dynamics, market commonality and competitive rivalry are the building blocks for a competitor analysis. A competitor analysis is a process of identifying and evaluating the strengths and weaknesses of current and potential competitors. It helps a business to understand the competitive landscape in which it operates and to develop strategies to gain a competitive advantage.

Question 31

How do awareness, motivation, and ability affect the firm’s competitive behavior?

Answer 31

Awareness refers to the extent to which competitors recognize the degree of their mutual interdependence. • Awareness tends to be greatest when firms have highly similar resources (in terms of types and amounts) to use when competing against each other in multiple markets. - Motivation concerns the firm’s incentive to take action or to respond to a competitor’s attack. • A firm may not be motivated to engage in competitive rivalry if it perceives that its market position will neither improve nor suffer if it does not respond.

Question 32

What factors affect the likelihood a firm will take a competitive action?

Answer 32

the likelihood that a firm will take a competitive action is influenced by a variety of factors, including awareness of the competitive environment, motivation to take action, resources and capabilities, perceived effectiveness of the action, and degree of risk. By understanding these factors, firms can make informed decisions about when and how to take competitive actions to gain a competitive advantage in the market.

Question 33

What factors affect the likelihood a firm will initiate a competitive response to a competitor’s action(s)?

Answer 33

a firm is likely to respond to a competitor’s action when either: • The action leads to better use of the competitor’s capabilities to develop a stronger competitive advantage or an improvement in its market position. • The action damages the firm’s ability to use its core competencies to create or maintain an advantage. • The firm’s market position becomes harder to defend.

Question 34

What competitive dynamics can firms expect to experience whencompeting 1- in slow-cycle markets? 2- In fast-cycle markets? 3- In standard- cycle markets?

Answer 34

1-In slow-cycle markets, the competitive advantage generated by a firm gradually erodes over time. • The firm launches a product it developed through a proprietary advantage. • It then exploits that advantage for as long as possible while the product’s uniqueness shields it from competition. • Eventually, competitors respond to the action with a counterattack. 2- • The firm launches a product to achieve a competitive advantage. • It then exploits that advantage for as long as possible. • It also tries to develop another competitive advantage before competitors can respond to the first one. 3- • Competitive advantages are partially sustainable but only if the firm can upgrade the quality of its capabilities continuously. • The capabilities and core competencies in which firms base their competitive advantages are less specialized. • Imitation is faster and less costly than in slow-cycle markets. • Imitation is slower and more expensive than in fast-cycle markets. • Both incremental and radical innovations are critical to firms’ efforts to achieve strategic competitiveness.