Question 1

The frontal attack by a market challenger looks for weak spots on the fringe of the opponent's defenses because these are natural targets.

Accepted Answer

A) True 
 B)False  False

Question 2

Because the cost of buying higher market share may far exceed its revenue value,a company should consider four factors before pursuing increased market share.These include all of the following EXCEPT ________.

Accepted Answer

A)  the possibility of provoking antitrust action
B)  the likelihood that an award-winning promotional campaign can be generated
C)  economic cost
D)  pursuing the wrong marketing-mix strategy
E)  the effect of increased market share on actual and perceived quality B

Question 3

________ competitors try to buy market share rather than earn it;take large risks;invest in overcapacity;and upset industrial equilibrium.

Accepted Answer

A)  "Bad"
B)  "Good"
C)  Distant
D)  Close
E)  Strong A

Question 4

What factors contribute to increasing the bargaining power of suppliers?

Accepted Answer

The answer of What factors contribute to increasing the bargaining...

Question 5

A preemptive defense is basically a strategic retreat until resources can be assembled for a more advantageous attack.

Accepted Answer

A) True 
 B)False

Question 6

Companies that attempt to increase market share by cutting prices more deeply than competitors typically achieve significant gains.

Accepted Answer

A) True 
 B)False

Question 7

A firm that serves small market segments not being served by bigger firms is known as a ________.

Accepted Answer

A)  market challenger
B)  market leader
C)  market follower
D)  market nicher
E)  market entrant

Question 8

Firms should only ever target weak competitors in order to maximize the return on their competitive investments.

Accepted Answer

A) True 
 B)False

Question 9

In terms of comparisons with a market leader,whereas the market leader achieves high volume,the market nicher achieves ________.

Accepted Answer

A)  high margin
B)  low margin
C)  high promotability
D)  medium pricing
E)  lower demand

Question 10

All of the following are considered market follower strategies EXCEPT ________.

Accepted Answer

A)  counterfeiter
B)  cloner
C)  imitator
D)  innovator
E)  adapter

Question 11

As a market follower,you have been labeled as a counterfeiter.Characterize your label.

Accepted Answer

The answer of As a market follower,you have been labeled...

Question 12

A competitor's share of industry sales is known as the firm's ________.

Accepted Answer

A)  share of market
B)  share of mind
C)  share of heart
D)  share of competitive space
E)  share of psychological field

Question 13

INSEAD professors W.Chan Kim and Renée Mauborgne believe that too many firms engage in "red-ocean thinking"-seeking bloody,head-to-head battles with competitors based largely on incremental improvements in cost,quality,or both.They advocate engaging instead in "blue-ocean thinking." Explain the concept of blue-ocean strategy.

Accepted Answer

The answer of INSEAD professors W.Chan Kim and Renée Mauborgne...

Question 14

After FedEx watched UPS successfully invade its airborne delivery system,FedEx invested heavily in ground delivery service through a series of acquisitions to challenge UPS on its home turf.This is an example of a ________.

Accepted Answer

A)  position defense
B)  flank defense
C)  counteroffensive defense
D)  contraction defense
E)  mobile defense

Question 15

A niche firm that specializes in customizing its products for individual customers is known as a ________.

Accepted Answer

A)  job-shop specialist
B)  customer-size specialist
C)  specific-customer specialist
D)  channel specialist
E)  vertical-level specialist

Question 16

In 2006,Sara Lee spun off products that accounted for almost 40% of the company's revenues,including its strong Hanes hosiery brand,so it could concentrate on its well-known food brands.In this example,Sara Lee is employing a ________ strategy.

Accepted Answer

A)  preemptive defense
B)  counteroffensive defense
C)  mobile defense
D)  flank defense
E)  contraction defense

Question 17

The first step that a market challenger must take in establishing its stance against competitors is to define its strategic objective.

Accepted Answer

A) True 
 B)False

Question 18

How can a firm with low share of the total market become highly profitable?

Accepted Answer

The answer of How can a firm with low share...

Question 19

Larger package sizes have been shown to increase the amount of product that consumers use at one time.This is an example of increasing sales through increasing the amount of consumption.

Accepted Answer

A) True 
 B)False

Question 20

Assume that your organization has chosen to pursue a market leader strategy of the flank defense.Describe what such a strategy might be.

Accepted Answer

The answer of Assume that your organization has chosen to...

Exam 11: Dealing With Competition

The frontal attack by a market challenger looks for weak spots on the fringe of the opponent's defenses because these are natural targets.

Because the cost of buying higher market share may far exceed its revenue value,a company should consider four factors before pursuing increased market share.These include all of the following EXCEPT ________.

________ competitors try to buy market share rather than earn it;take large risks;invest in overcapacity;and upset industrial equilibrium.

What factors contribute to increasing the bargaining power of suppliers?

A preemptive defense is basically a strategic retreat until resources can be assembled for a more advantageous attack.

Companies that attempt to increase market share by cutting prices more deeply than competitors typically achieve significant gains.

A firm that serves small market segments not being served by bigger firms is known as a ________.

Firms should only ever target weak competitors in order to maximize the return on their competitive investments.

In terms of comparisons with a market leader,whereas the market leader achieves high volume,the market nicher achieves ________.

All of the following are considered market follower strategies EXCEPT ________.

As a market follower,you have been labeled as a counterfeiter.Characterize your label.

A competitor's share of industry sales is known as the firm's ________.

After FedEx watched UPS successfully invade its airborne delivery system,FedEx invested heavily in ground delivery service through a series of acquisitions to challenge UPS on its home turf.This is an example of a ________.

A niche firm that specializes in customizing its products for individual customers is known as a ________.

In 2006,Sara Lee spun off products that accounted for almost 40% of the company's revenues,including its strong Hanes hosiery brand,so it could concentrate on its well-known food brands.In this example,Sara Lee is employing a ________ strategy.

The first step that a market challenger must take in establishing its stance against competitors is to define its strategic objective.

How can a firm with low share of the total market become highly profitable?

Larger package sizes have been shown to increase the amount of product that consumers use at one time.This is an example of increasing sales through increasing the amount of consumption.

Assume that your organization has chosen to pursue a market leader strategy of the flank defense.Describe what such a strategy might be.