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Chap 18 - Creating Competitive Advantage

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

A competitor analysis requires the assessment of all of the following EXCEPT the competitors' _____.

a)

objectives

b)

organizational hierarchy

c)

strategies

d)

strengths and weaknesses

2.

Gaining _____ requires delivering more value and satisfaction to target consumers than competitors do.

a)

competitive advantage

b)

first-mover advantage

c)

economies of scale

d)

differentiation

3.

The goal of performing a competitor analysis is to _____.

a)

learn more about the competitors' sales structures

b)

find flaws in the competitors' manufacturing processes

c)

copy the best features that the competitors offer

d)

find areas of potential competitive advantage and disadvantage

4.

A company that pursues _____ will react much more strongly to a competitor's cost reducing manufacturing breakthrough than to the same competitor's advertising increase.

a)

product differentiation

b)

low-cost leadership

c)

a middle-of-the-roaders strategy

d)

product leadership

5.

Companies use secondary data, personal experience, and word of mouth to _____.

a)

identify competitors' target customers and strategies

b)

identify competitors' target locations and market share

c)

learn about their competitors' strengths and weaknesses

d)

estimate competitors' sales projections

6.

_____ is the process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance.

a)

Segmenting

b)

Positioning

c)

Sales promotion

d)

Benchmarking

7.

What term is applied to the practice of a firm comparing its products and processes to the leading competitors in the same industry?

a)

Assessing

b)

Competing

c)

Estimating

d)

Benchmarking

8.

Rather than competing head to head with established competitors, many companies seek out unoccupied positions in uncontested market spaces. They try to create products and services for which there are no direct competitors. This is called a _____.

a)

horizontal integration approach

b)

commercialization process

c)

blue ocean strategy

d)

generic strategy

9.

Tomorrow's leading companies will succeed by seeking out unoccupied positions in uncontested market spaces. Such strategic moves, termed _____, create powerful leaps in value for both the firm and its buyers, creating new demand for new products.

a)

customer lifetime value

b)

customer equity

c)

value innovation

d)

market segmentation

10.

Which of the following statements is true of the approaches to marketing strategy?

a)

Intrapreneurial marketing applies to companies that sometimes lose their marketing creativity and passion that they had at the start.

b)

As small companies achieve success, they inevitably move away from more-formulated marketing.

c)

Formulated marketing seldom involves developing formal marketing strategies and adhering to them closely.

d)

Formulated marketing encourages more marketing initiative and "intrapreneurship" at the local level.

11.

According to Michael Porter, what are three effective competitive positioning strategies?

a)

middle-of-the-roaders, focus, and overall cost leadership

b)

focus, differentiation, and middle-of-the-roaders

c)

overall cost leadership, differentiation, and focus

d)

differentiation, market segmentation, and focus

12.

Bosch is a German firm that manufactures home appliances such as dishwashers, ovens, and ranges. It competes with companies such as GE Elite and LG. Bosch is perceived as the class of the industry. Bosch pursues a(n) _____ strategy.

a)

focus

b)

blue ocean

c)

overall cost leadership

d)

differentiation

13.

Fifty percent of the market is in the hands of Company A, 30 percent is in the hands of Company B, 15 percent is in the hands of Company C, and the remaining 5 percent is in the hands of Company D. Based on these hypothetical numbers, Company B is the market _____.

a)

leader

b)

challenger

c)

follower

d)

nicher

14.

A runner-up firm that wants to hold its share in an industry without rocking the boat is a _____.

a)

market follower

b)

market challenger

c)

market nicher

d)

market leader

15.

Fifty percent of the market is in the hands of Company A, 30 percent is in the hands of Company B, 15 percent is in the hands of Company C, and the remaining 5 percent is in the hands of Company D. Based on these hypothetical numbers, Company D is the market _____.

a)

leader

b)

challenger

c)

nicher

d)

follower