SM Chapter 5: Competitive Dynamics

Competitive dynamics refer to?

• The ongoing set of competitive actions and responses occurring between competitors

• Firms competing against each other in several product or geographic markets

• The set of competitive actions and competitive responses the firm takes to build or defend its competitive advantages and to improve its market position

• The total set of actions and responses taken by all firms competing within a market

A firm strategy's success is determined by all of the following EXCEPT

• How well the firm anticipates and responds to its competitors’ initial actions

• The number of markets with which a firm and a competitor are jointly involved

• The firm’s initial competitive actions

• How well it anticipates competitors’ responses to them

Competitive rivalry has the most effect on the firm's ____________ strategies than the firm's other strategies.

• international

• business-level

• corporate-level

• acquisition

Multimarket competition occurs when firms

• sell different products to the same customer

• have a high level of awareness of their competitors' strategic intent

• compete against each other in several product or geographic markets

• simultaneously enter into an attack strategy

Intensified rivalry within an industry results in

• decreased average profitability across the industry

• increased hiring across the industry

• increased total revenues across the industry

• increased entries into the industry

Research suggests that a firm with greater multimarket contact is _________ likely to initiate and attack, and __________ likely to respond aggressively when attacked,

• more; more

• less; more

• less; less

• more; less

________ relates to the gains or losses a firm will experience if it attacks a rival or responds to an attack by a rival.

• Motivation

• Awareness

• Responsiveness

• Ability

Firms with few competitive resources are more likely to

• not respond to competitive actions

• respond quickly to competitive actions

• delay responding to competitive actions

• respond to strategic actions, but not to tactical actions

Both ___________ and _____________ affect the awareness and motivation of a firm to undertake actions and responses

• first-mover advantages; corporate size

• market commonality; resource similarity

• management capabilities; competitive analysis

• speed of management decisions; management actions

Which of the following is the tactical action/response?

• A market-based move that involves a significant commitment of organizational resources and is difficult to implement and reverse

• A market-based move that is taken to fine-tune a strategy, usually involves fewer resources and is relatively easy to implement and reverse