S08 - Competition Analysis Flashcards
A streaming service enters a saturated market with strong competitors offering similar pricing and features.
Question:
What strategy should it prioritize to survive high competitive rivalry?
A. Focus on exclusive partnerships with content creators.
B. Engage in aggressive price wars to capture market share.
C. Increase marketing spend to promote its existing features.
D. Merge with smaller competitors to reduce rivalry.
A. Focus on exclusive partnerships with content creators.
Exclusive partnerships differentiate the service and reduce direct rivalry
A high-end coffee chain faces competition from energy drinks targeting the same customer base for quick energy solutions.
Question:
Which strategy best mitigates the threat of substitution?
A. Reduce coffee prices to match energy drink costs.
B. Expand the menu to include beverages that compete with energy drinks.
C. Focus on differentiating through quality and sustainability.
D. Ignore substitutes, as the customer base is distinct.
C. Focus on differentiating through quality and sustainability.
Differentiating through quality and sustainability reduces the appeal of substitutes.
A smartphone manufacturer relies on a single supplier for microchips, which increases the supplier’s bargaining power.
Question:
What action should the company take to reduce supplier power?
A. Acquire the supplier to vertically integrate production.
B. Switch to a less specialized supplier to reduce dependency.
C. Stockpile inventory to handle future price increases.
D. Develop in-house manufacturing capabilities for microchips.
A. Acquire the supplier to vertically integrate production.
Vertical integration lowers dependency and reduces supplier power.
A luxury brand has a small but loyal customer base that demands personalized experiences and premium products.
Question:
How can the company address high buyer power?
A. Lower prices to attract a broader audience.
B. Diversify offerings to reduce dependency on high-demand customers.
C. Focus on creating ultra-luxury experiences for top-tier clients.
D. Introduce limited-edition products to increase perceived exclusivity.
D. Introduce limited-edition products to increase perceived exclusivity.
Limited-edition products reduce buyer power by increasing the brand’s perceived value.
A food delivery company operates in a crowded market dominated by major players.
Question:
How can it create a Blue Ocean strategy?
A. Lower delivery fees to undercut competitors.
B. Partner with high-end restaurants to deliver exclusive dining experiences.
C. Focus on rural areas where delivery services are less common.
D. Launch a loyalty program to increase customer retention.
C. Focus on rural areas where delivery services are less common.
Serving an underserved market aligns with Blue Ocean principles by reducing direct competition.
A new fitness app enters a market with dozens of established competitors offering similar services.
Question:
What approach aligns with a Red Ocean strategy?
A. Develop unique features that create a new market segment.
B. Compete directly by offering lower subscription fees.
C. Partner with wearable device companies to differentiate.
D. Target untapped segments like senior citizens.
B. Compete directly by offering lower subscription fees.
Competing on price aligns with a Red Ocean approach, focusing on existing market share.
Two competing airlines collaborate to develop more sustainable fuel options while maintaining competition in ticket sales.
Question:
What is the primary benefit of this co-opetition strategy?
A. Reducing operational costs through resource sharing.
B. Eliminating competition in the airline industry.
C. Standardizing ticket prices across both companies.
D. Pooling customer bases to maximize market share.
A. Reducing operational costs through resource sharing.
Resource sharing reduces costs while maintaining competition.
A software company in a high-margin industry notices a growing number of startups entering its market.
Question:
What strategy can it use to create barriers to entry?
A. Lower prices to make the market less attractive.
B. Invest in R&D to establish patent-protected technologies.
C. Collaborate with new entrants to avoid competition.
D. Focus on short-term profit maximization.
B. Invest in R&D to establish patent-protected technologies.
Patents create significant barriers to entry for new competitors.
An e-commerce retailer wants to understand why competitors have a higher customer retention rate.
Question:
Which action will yield the most actionable insights?
A. Monitor competitors’ customer reviews and feedback.
B. Analyze competitors’ annual reports for financial data.
C. Study social media metrics for customer sentiment trends.
D. Audit competitors’ pricing strategies and promotions.
A. Monitor competitors’ customer reviews and feedback.
Customer reviews provide actionable insights into competitors’ retention strategies.
A competitor positions itself as a youthful, adventurous brand with bold visuals and messaging.
Question:
How can your company differentiate its brand identity?
A. Adopt a similar youthful and adventurous tone to compete.
B. Focus on authenticity and heritage to create a unique personality.
C. Prioritize aggressive pricing to attract younger audiences.
D. Offer broader product categories to diversify appeal.
B. Focus on authenticity and heritage to create a unique personality.
A unique brand personality differentiates your company from competitors.
A premium electronics brand competes in a market with low barriers to entry and new competitors.
Question:
What strategy will help maintain its competitive position?
A. Develop brand loyalty through superior customer service.
B. Reduce prices to discourage new entrants.
C. Diversify into unrelated product categories.
D. Focus on producing budget-friendly alternatives.
A. Develop brand loyalty through superior customer service.
Strong brand loyalty discourages new entrants by creating a dedicated customer base.
A furniture company’s competitors focus on affordable, minimalist designs.
Question:
What differentiation strategy can it use to stand out?
A. Offer premium handcrafted designs with customization options.
B. Match competitors’ prices to attract a larger audience.
C. Focus on simplifying its supply chain to lower production costs.
D. Shift marketing efforts to target urban customers exclusively.
A. Offer premium handcrafted designs with customization options.
Customization and premium quality differentiate the company from minimalist, affordable competitors.
A tech startup offers software specifically for freelance graphic designers.
Question:
What is the biggest challenge with niche targeting?
A. Attracting a sustainable number of users to ensure profitability.
B. Managing competition from larger generalist software providers.
C. Expanding features without alienating core users.
D. Building partnerships with unrelated industries.
A. Attracting a sustainable number of users to ensure profitability.
Niche targeting often struggles with scalability due to a limited user base.
A clothing brand finds that its online store customers often abandon carts after browsing for extended periods.
Question:
What aspect of the customer journey should it prioritize improving?
A. Simplify checkout and payment processes.
B. Add more product options to the catalog.
C. Focus on increasing website traffic.
D. Offer discounts for repeat purchases.
A. Simplify checkout and payment processes.
Simplifying the checkout process reduces cart abandonment rates.
Two competing ride-sharing companies collaborate to implement shared infrastructure in a city while maintaining separate operations.
Question:
What potential downside could arise from this co-opetition?
A. Reduced focus on improving individual services.
B. Legal scrutiny over anti-competitive practices.
C. Customer confusion due to shared infrastructure.
D. Increased costs due to collaboration inefficiencies.
B. Legal scrutiny over anti-competitive practices.
Co-opetition may face legal challenges if perceived as reducing competition unfairly.
