SEVI 3013 Exam 2- Uark ACTUAL 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
First mover - CORRECT ANSWER - a firm that takes an initial competitive action in order to
build or defend its competitive advantages or to improve its market position
First-mover benefits are often critical to a firm's success in industries: - CORRECT
ANSWER - -experiencing rapid technological developments
-with relatively short product life cycles
In addition to earning above-average returns until its competitors respond to its successful
competitive action, the first mover can gain: - CORRECT ANSWER - -the loyalty of
customers
-market share
First movers tend to: - CORRECT ANSWER - •Be aggressive
•Be willing to experiment with innovation
•Take higher yet reasonable levels of risk
To be a first mover, the firm must have readily available resources to: - CORRECT
ANSWER - -Invest significantly in R&D
-rapidly and successfully produce and market a stream of innovative products
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
First mover - CORRECT ANSWER - a firm that takes an initial competitive action in order to
build or defend its competitive advantages or to improve its market position
First-mover benefits are often critical to a firm's success in industries: - CORRECT
ANSWER - -experiencing rapid technological developments
-with relatively short product life cycles
In addition to earning above-average returns until its competitors respond to its successful
competitive action, the first mover can gain: - CORRECT ANSWER - -the loyalty of
customers
-market share
First movers tend to: - CORRECT ANSWER - •Be aggressive
•Be willing to experiment with innovation
•Take higher yet reasonable levels of risk
To be a first mover, the firm must have readily available resources to: - CORRECT
ANSWER - -Invest significantly in R&D
-rapidly and successfully produce and market a stream of innovative products
