BUSA 4980 CHAPTER 5 QUESTIONS WITH VERIFIED
ANSWERS
Competitive rivalry - Answers - competitors engage in ?
to gain an advantageous market position - Answers - why do competitors engage in
competitive rivalry?
through competitive behavior - Answers - how do competitors engage in competitive
rivalry?
competitive dynamics - Answers - what are the results of competitive rivalry?
competitors - Answers - are firms competing in the same market, offering similar
products, and targeting similar customers.
Competitive rivalry - Answers - is the ongoing set of competitive actions and competitive
responses occurring between competitors as they compete against each other for an
advantageous market position
ability to sustain its competitive advantages as well as the level (average, below-
average, or above-average) of its financial returns - Answers - The outcomes of
competitive rivalry influence the firm's ?
competitive behavior - Answers - For the individual firm, the set of competitive actions
and responses it takes while engaged in competitive rivalry is called
Competitive dynamics - Answers - is the set of actions taken by all firms that are
competitors within a particular market.
multimarket competition - Answers - firms competing against each other in several
product or geographic markets are engaged in ?
competitive rivalry - Answers - has the strongest influence on the firm's business-level
strategies
-the firm's initial competitive actions
-how well it anticipates competitors' responses to them
-how well the firm anticipates and responds to its competitors' initial actions - Answers -
success of a strategy is determined by: (3)
competitive rivalry - Answers - affects all types of strategies
, competitor analysis - Answers - used to help a firm understand its competitors by
studying their future objectives, strategies, assumptions, and capabilities
Market commonality - Answers - refers to the number of markets with which competitors
are jointly involved and their importance to each
Resource similarity - Answers - refers to how comparable competitors' resources are in
terms of type and amount.
market commonality and resource similarity - Answers - the building blocks of a
competitor analysis because they are foundational to this understanding (2)
prediction - Answers - understanding precedes
acknowledge that they are direct competitors - Answers - in general, the greater the
market commonality and resource similarity, the more firms ?
awareness, motivation, and ability - Answers - market commonality and resource
similarity shape the firm's ? , ?, and ?
awareness - Answers - the degree to which it and its competitors understand their
mutual interdependence
motivation - Answers - the firm's incentive to attack or respond
ability - Answers - the quality of the resources available to the firm to attack and
respond
awareness, motivation, and ability - Answers - what are the 3 drives of competitive
behavior
first mover - Answers - a firm that takes an initial competitive action in order to build or
defend its competitive advantages or to improve its market position
-product innovation and development
-aggressive advertising
-advanced research and development - Answers - first movers allocate funds for : (3)
-the loyalty of customers who may become committed to the firm's goods or services
-market share that can be difficult for competitors to take during future competitive
rivalry - Answers - first movers can gain: (2)
-have high propensity to take risk
-have slack resources
-are aggressive
-possess superior R&D compentency - Answers - first movers characteristics (4):
ANSWERS
Competitive rivalry - Answers - competitors engage in ?
to gain an advantageous market position - Answers - why do competitors engage in
competitive rivalry?
through competitive behavior - Answers - how do competitors engage in competitive
rivalry?
competitive dynamics - Answers - what are the results of competitive rivalry?
competitors - Answers - are firms competing in the same market, offering similar
products, and targeting similar customers.
Competitive rivalry - Answers - is the ongoing set of competitive actions and competitive
responses occurring between competitors as they compete against each other for an
advantageous market position
ability to sustain its competitive advantages as well as the level (average, below-
average, or above-average) of its financial returns - Answers - The outcomes of
competitive rivalry influence the firm's ?
competitive behavior - Answers - For the individual firm, the set of competitive actions
and responses it takes while engaged in competitive rivalry is called
Competitive dynamics - Answers - is the set of actions taken by all firms that are
competitors within a particular market.
multimarket competition - Answers - firms competing against each other in several
product or geographic markets are engaged in ?
competitive rivalry - Answers - has the strongest influence on the firm's business-level
strategies
-the firm's initial competitive actions
-how well it anticipates competitors' responses to them
-how well the firm anticipates and responds to its competitors' initial actions - Answers -
success of a strategy is determined by: (3)
competitive rivalry - Answers - affects all types of strategies
, competitor analysis - Answers - used to help a firm understand its competitors by
studying their future objectives, strategies, assumptions, and capabilities
Market commonality - Answers - refers to the number of markets with which competitors
are jointly involved and their importance to each
Resource similarity - Answers - refers to how comparable competitors' resources are in
terms of type and amount.
market commonality and resource similarity - Answers - the building blocks of a
competitor analysis because they are foundational to this understanding (2)
prediction - Answers - understanding precedes
acknowledge that they are direct competitors - Answers - in general, the greater the
market commonality and resource similarity, the more firms ?
awareness, motivation, and ability - Answers - market commonality and resource
similarity shape the firm's ? , ?, and ?
awareness - Answers - the degree to which it and its competitors understand their
mutual interdependence
motivation - Answers - the firm's incentive to attack or respond
ability - Answers - the quality of the resources available to the firm to attack and
respond
awareness, motivation, and ability - Answers - what are the 3 drives of competitive
behavior
first mover - Answers - a firm that takes an initial competitive action in order to build or
defend its competitive advantages or to improve its market position
-product innovation and development
-aggressive advertising
-advanced research and development - Answers - first movers allocate funds for : (3)
-the loyalty of customers who may become committed to the firm's goods or services
-market share that can be difficult for competitors to take during future competitive
rivalry - Answers - first movers can gain: (2)
-have high propensity to take risk
-have slack resources
-are aggressive
-possess superior R&D compentency - Answers - first movers characteristics (4):
