SEVI 3013 Exam 2- Uark questions &
answers graded A+
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
answers graded A+
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
