SEVI 3013 Exam 2- Uark UPDATED Exam
Questions and CORRECT Answers
Strategic Action - Correct Answer- a market-based move that involves a significant
commitment of organizational resources and is difficult to implement and reverse
Tactical action - Correct Answer- a market-based move that is taken to fine-tune a strategy; it
involves fewer resources and is relatively easy to implement and reverse
Competitive Action - Correct Answer- a strategic or tactical action the firm takes to build or
defend its competitive advantages or improve its market position
Competitive Response - Correct Answer- a strategic or tactical action the firm takes to
counter the effects of a competitor's competitive action
Competitors - Correct Answer- firms operating in the same market, offering similar products,
and targeting similar customers
Competitive rivalry - Correct Answer- the ongoing set of competitive actions and competitive
responses that occur among firms as they maneuver for an advantageous market position
The outcomes of competitive rivalry influence the firms: - Correct Answer- § Ability to
develop and then sustain its competitive advantages
§ Level (average, below average, or above average) of financial return.
Competitive Behavior - Correct Answer- the set of competitive actions and competitive
responses the firm takes to build or defend its competitive advantages and to improve its
market position
Multimarket Competition - Correct Answer- occurs when firms compete against each other in
several product or geographic markets
Competitive dynamics - Correct Answer- The total set of actions and responses taken by all
firms competing within a market.
, competitor analysis - Correct Answer- how companies gather and interpret information about
their competitors- to understand
Competitor analysis studies: - Correct Answer- Future objectives, current strategies,
assumptions, capabilities
To complete a competitor analysis, firms study: - Correct Answer- market commonality and
resource similarity
market commonality and resource similarity shape the firms: - Correct Answer- Awareness,
motivation, ability
Awareness - Correct Answer- refers to the extent to which competitors recognize the degree
of their mutual interdependence
Motivation - Correct Answer- concerns the firms incentive to take action or to respond to a
competitors attack
Ability - Correct Answer- refers to the quality of resources available to the firm to attack and
respond
Resource Dissimilarity - Correct Answer- the more significant the difference between
resources owned by the acting firm and those against whom it has taken action, the longer is
the delay by the firm with a resource disadvantage
-influences competitive actions and responses firms choose to take
Cost - Correct Answer- the amount of money a firm pays to deliver products or services to
the customer
Price - Correct Answer- what the customer pays to obtain the product or service
Competitive Dynamics differ in: - Correct Answer- slow, fast, and standard cycle markets
Questions and CORRECT Answers
Strategic Action - Correct Answer- a market-based move that involves a significant
commitment of organizational resources and is difficult to implement and reverse
Tactical action - Correct Answer- a market-based move that is taken to fine-tune a strategy; it
involves fewer resources and is relatively easy to implement and reverse
Competitive Action - Correct Answer- a strategic or tactical action the firm takes to build or
defend its competitive advantages or improve its market position
Competitive Response - Correct Answer- a strategic or tactical action the firm takes to
counter the effects of a competitor's competitive action
Competitors - Correct Answer- firms operating in the same market, offering similar products,
and targeting similar customers
Competitive rivalry - Correct Answer- the ongoing set of competitive actions and competitive
responses that occur among firms as they maneuver for an advantageous market position
The outcomes of competitive rivalry influence the firms: - Correct Answer- § Ability to
develop and then sustain its competitive advantages
§ Level (average, below average, or above average) of financial return.
Competitive Behavior - Correct Answer- the set of competitive actions and competitive
responses the firm takes to build or defend its competitive advantages and to improve its
market position
Multimarket Competition - Correct Answer- occurs when firms compete against each other in
several product or geographic markets
Competitive dynamics - Correct Answer- The total set of actions and responses taken by all
firms competing within a market.
, competitor analysis - Correct Answer- how companies gather and interpret information about
their competitors- to understand
Competitor analysis studies: - Correct Answer- Future objectives, current strategies,
assumptions, capabilities
To complete a competitor analysis, firms study: - Correct Answer- market commonality and
resource similarity
market commonality and resource similarity shape the firms: - Correct Answer- Awareness,
motivation, ability
Awareness - Correct Answer- refers to the extent to which competitors recognize the degree
of their mutual interdependence
Motivation - Correct Answer- concerns the firms incentive to take action or to respond to a
competitors attack
Ability - Correct Answer- refers to the quality of resources available to the firm to attack and
respond
Resource Dissimilarity - Correct Answer- the more significant the difference between
resources owned by the acting firm and those against whom it has taken action, the longer is
the delay by the firm with a resource disadvantage
-influences competitive actions and responses firms choose to take
Cost - Correct Answer- the amount of money a firm pays to deliver products or services to
the customer
Price - Correct Answer- what the customer pays to obtain the product or service
Competitive Dynamics differ in: - Correct Answer- slow, fast, and standard cycle markets
