MGMT 493 -Exam 2- Woo-Test
Questions Fully Solved Graded A+
2026 Updated.
Chapter 5 - Answer
Assumptions of Competitive Dynamics - Answer -Competitive advantage is temporary
-Firm performance depends on actions and responses between competitors
-Whether a firm's actions in markets are effective depends on rivals' responses
Prisoner's Dilemma - Answer a particular "game" between two captured prisoners that
illustrates why cooperation is difficult to maintain even when it is mutually beneficial
Competition - Answer - emphasizing the structure of market.
- a property of market structure whose form is determined by market forces not subject to the
conscious control of individual firms.
Rivalry - Answer - emphasizing the conduct of individual firms.
- direct competition (between 2 firms) when they are directly identifiable to each other.
Competitive Dynamics - Answer ongoing actions and responses taking place among ALL firms
competing within a market for advantageous positions.
Competitive Rivalry - Answer ongoing actions and responses taking place between an
INDIVIDUAL firm and ITS COMPETITORS for advantageous market position.
Competitor Analysis - Answer
Market Commonality - Answer - number of markets with which a firm and a competitor are
jointly involved.
- degree of importance of the individual markets to each competitor.
Resource Similarity - Answer - similar types and amounts of resources.
- use similar strategies
- rivalry in input markets too
, Types of Actions ( or Response ) - Answer
Strategic Action ( or response ) - Answer - a market-based move that involves a significant
commitment of organizational resources and is difficult to implement and reverse.
ex: new product introduction
Tactical Actions ( or Response ) - Answer - a market-based move that is taken to fine-tune a
strategy:
-usually involves fewer resources
- is relatively easy to implement and reverse
ex: price cut
Factors affecting likelihood of Attack - Answer
First Mover - Answer a firm that takes an initial competitive action in oder to build or defend
its competitive advantages or to improve its market position. ( ex: apple first smart phone )
First Mover Incentives - Answer First movers allocate funds for:
- Product innovation and development
- Aggressive advertising
- Advanced research and development
First movers can gain:
- The loyalty of customers who may become committed to the firm's goods or services
- Market share that can be difficult for competitors to take during future competitive rivalry
Organizational Size - Small - Answer Small firms are more likely to:
-launch competitive actions
-be quicker in doing so
Small firms are perceived as:
-nimble and flexible competitors
-relying on speed and surprise to defend competitive advantages or develop new ones while
engaged in competitive rivalry
-having the flexibility needed to launch a greater variety of competitive actions
Questions Fully Solved Graded A+
2026 Updated.
Chapter 5 - Answer
Assumptions of Competitive Dynamics - Answer -Competitive advantage is temporary
-Firm performance depends on actions and responses between competitors
-Whether a firm's actions in markets are effective depends on rivals' responses
Prisoner's Dilemma - Answer a particular "game" between two captured prisoners that
illustrates why cooperation is difficult to maintain even when it is mutually beneficial
Competition - Answer - emphasizing the structure of market.
- a property of market structure whose form is determined by market forces not subject to the
conscious control of individual firms.
Rivalry - Answer - emphasizing the conduct of individual firms.
- direct competition (between 2 firms) when they are directly identifiable to each other.
Competitive Dynamics - Answer ongoing actions and responses taking place among ALL firms
competing within a market for advantageous positions.
Competitive Rivalry - Answer ongoing actions and responses taking place between an
INDIVIDUAL firm and ITS COMPETITORS for advantageous market position.
Competitor Analysis - Answer
Market Commonality - Answer - number of markets with which a firm and a competitor are
jointly involved.
- degree of importance of the individual markets to each competitor.
Resource Similarity - Answer - similar types and amounts of resources.
- use similar strategies
- rivalry in input markets too
, Types of Actions ( or Response ) - Answer
Strategic Action ( or response ) - Answer - a market-based move that involves a significant
commitment of organizational resources and is difficult to implement and reverse.
ex: new product introduction
Tactical Actions ( or Response ) - Answer - a market-based move that is taken to fine-tune a
strategy:
-usually involves fewer resources
- is relatively easy to implement and reverse
ex: price cut
Factors affecting likelihood of Attack - Answer
First Mover - Answer a firm that takes an initial competitive action in oder to build or defend
its competitive advantages or to improve its market position. ( ex: apple first smart phone )
First Mover Incentives - Answer First movers allocate funds for:
- Product innovation and development
- Aggressive advertising
- Advanced research and development
First movers can gain:
- The loyalty of customers who may become committed to the firm's goods or services
- Market share that can be difficult for competitors to take during future competitive rivalry
Organizational Size - Small - Answer Small firms are more likely to:
-launch competitive actions
-be quicker in doing so
Small firms are perceived as:
-nimble and flexible competitors
-relying on speed and surprise to defend competitive advantages or develop new ones while
engaged in competitive rivalry
-having the flexibility needed to launch a greater variety of competitive actions
