WPC 480 FULL EXAM SET & PREDICTIVE
PACKAGE CONFIDENT PASS 2026.
◍ Akamai Technologies is a dominant player in the content delivery
network (CDN) market. Akamai is not very diversified (i.e., is
dependent on the CDN market). If rival CDN providers such as
Limelight Networks and Level 3
Communications lower their basic CDN service prices, what would
be Akamai's likely response?
a. raise its prices
b. do nothing since it is the market leader
c. exit the industry
d. lower its prices Answer:D
◍ Lobelia's Nursery and Garden Resource Center has long provided
high-quality, typical types of seasonal bedding plants to customers in
the Mobile, Alabama, metropolitan area. It has traditionally competed
with the other plant nurseries within a 50-mile radius of Mobile.
Recently, Lobelia has opened a branch in Fairfax, Virginia. Lobelia's
research shows that most Fairfax nurseries have only one location.
Lobelia can expect the local Fairfax nurseries to
a. be unmotivated to respond because their market position is not
threatened by a new competitor from out-of-
town.
,b. respond with fierce attacks because of resource dissimilarity.
c. respond aggressively because of high market dependence.
d. take no competitive response because of the lack of mutual
interdependence among the nurseries. Answer:C
◍ Which organization has the highest market dependence?
a. a chain of rapid-service oil change shops
b. a manufacturer of chemicals for the international pharmaceutical
industry
c. a regional department store having 26 locations in the Northwest
d. a company that specializes in making replacement tiles for the
space shuttle Answer:D
◍ Sustained competitive advantage is most achievable in a (BLANK)
market.
a. slow-cycle
b. medium-cycle
c. standard-cycle
d. fast-cycle Answer:A
◍ Walt Disney's focus on (BLANK) is typical of a slow-cycle market.
a. innovation
,b. total quality
c. proprietary rights
d. economies of scale Answer:C
◍ The CEO of the Wholesome Food retail grocery chain, which
specializes in organic and natural produce and meat, has stated, "The
key to success is to find your niche and focus on it, regardless of what
anyone else does." The CEO (BLANK)
a. realizes that he must understand competitors in order to predict
their competitive actions and responses.
b. understands that he is the market leader in his niche and thus has a
sustainable competitive advantage.
c. believes he has placed his firm in a slow-cycle industry where
concerns about protecting unique
competencies dominate concerns about market share.
d. realizes his firm has such lower resources than other competitors
that his chain is "competitively invisible" to them. Answer:C
◍ The ability of Disney to maintain its competitive advantage through
proprietary rights to its characters would be severely weakened if
a. theme parks with alternative cartoon characters were built in large
numbers.
b. numerous lawsuits against copyright thieves tainted the reputation
of the company.
, c. Disney attempted to move beyond its traditional industry.
d. Disney's cartoon characters became widely perceived as old-
fashioned and unappealing. Answer:D
◍ Lawsuits over patent and copyright infringements are more
common and intense in
a. fast-cycle markets because the market is innovation-driven.
b. standard-cycle markets because the firm's brand name is such an
important competitive advantage.
c. slow-cycle markets, because of the ability to shelter the company
from imitation of its competitive
advantage.
d. standard-cycle markets because innovation is rare, and so gives the
innovating firm a significant competitive advantage. Answer:C
◍ Traditionally, the music industry signed multi-year contracts with
artists and sold copyright protected music through established
distribution channels. A shift to the digital format and the rise of
Internet technology has resulted in the sharing of music over peer-to-
peer networks, a practice the industry called "piracy." In recent years,
the music industry has seen a rapid decline in the number of CDs
sold. At the same time, the ownership of the distribution rights of
musical content under copyright laws remains clear. Attempts at
innovation by individual record labels to offer music as direct
downloads to consumer are quickly copied by other labels. Based on
these factors, the best assessment is that the music industry has shifted
from a (BLANK) to a (BLANK) cycle market.
PACKAGE CONFIDENT PASS 2026.
◍ Akamai Technologies is a dominant player in the content delivery
network (CDN) market. Akamai is not very diversified (i.e., is
dependent on the CDN market). If rival CDN providers such as
Limelight Networks and Level 3
Communications lower their basic CDN service prices, what would
be Akamai's likely response?
a. raise its prices
b. do nothing since it is the market leader
c. exit the industry
d. lower its prices Answer:D
◍ Lobelia's Nursery and Garden Resource Center has long provided
high-quality, typical types of seasonal bedding plants to customers in
the Mobile, Alabama, metropolitan area. It has traditionally competed
with the other plant nurseries within a 50-mile radius of Mobile.
Recently, Lobelia has opened a branch in Fairfax, Virginia. Lobelia's
research shows that most Fairfax nurseries have only one location.
Lobelia can expect the local Fairfax nurseries to
a. be unmotivated to respond because their market position is not
threatened by a new competitor from out-of-
town.
,b. respond with fierce attacks because of resource dissimilarity.
c. respond aggressively because of high market dependence.
d. take no competitive response because of the lack of mutual
interdependence among the nurseries. Answer:C
◍ Which organization has the highest market dependence?
a. a chain of rapid-service oil change shops
b. a manufacturer of chemicals for the international pharmaceutical
industry
c. a regional department store having 26 locations in the Northwest
d. a company that specializes in making replacement tiles for the
space shuttle Answer:D
◍ Sustained competitive advantage is most achievable in a (BLANK)
market.
a. slow-cycle
b. medium-cycle
c. standard-cycle
d. fast-cycle Answer:A
◍ Walt Disney's focus on (BLANK) is typical of a slow-cycle market.
a. innovation
,b. total quality
c. proprietary rights
d. economies of scale Answer:C
◍ The CEO of the Wholesome Food retail grocery chain, which
specializes in organic and natural produce and meat, has stated, "The
key to success is to find your niche and focus on it, regardless of what
anyone else does." The CEO (BLANK)
a. realizes that he must understand competitors in order to predict
their competitive actions and responses.
b. understands that he is the market leader in his niche and thus has a
sustainable competitive advantage.
c. believes he has placed his firm in a slow-cycle industry where
concerns about protecting unique
competencies dominate concerns about market share.
d. realizes his firm has such lower resources than other competitors
that his chain is "competitively invisible" to them. Answer:C
◍ The ability of Disney to maintain its competitive advantage through
proprietary rights to its characters would be severely weakened if
a. theme parks with alternative cartoon characters were built in large
numbers.
b. numerous lawsuits against copyright thieves tainted the reputation
of the company.
, c. Disney attempted to move beyond its traditional industry.
d. Disney's cartoon characters became widely perceived as old-
fashioned and unappealing. Answer:D
◍ Lawsuits over patent and copyright infringements are more
common and intense in
a. fast-cycle markets because the market is innovation-driven.
b. standard-cycle markets because the firm's brand name is such an
important competitive advantage.
c. slow-cycle markets, because of the ability to shelter the company
from imitation of its competitive
advantage.
d. standard-cycle markets because innovation is rare, and so gives the
innovating firm a significant competitive advantage. Answer:C
◍ Traditionally, the music industry signed multi-year contracts with
artists and sold copyright protected music through established
distribution channels. A shift to the digital format and the rise of
Internet technology has resulted in the sharing of music over peer-to-
peer networks, a practice the industry called "piracy." In recent years,
the music industry has seen a rapid decline in the number of CDs
sold. At the same time, the ownership of the distribution rights of
musical content under copyright laws remains clear. Attempts at
innovation by individual record labels to offer music as direct
downloads to consumer are quickly copied by other labels. Based on
these factors, the best assessment is that the music industry has shifted
from a (BLANK) to a (BLANK) cycle market.
