BUSA 4980 CHAPTER 5 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

BUSA 4980 CHAPTER 5 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 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): market commonality and resource similarity - Answers ? and ? influence the drivers (awareness, motivation, and ability) of competitive behavior. competitive behavior - Answers the drivers influence the firm's ? Awareness - Answers refers to the extent to which competitors recognize the degree of their mutual interdependence that results from market commonality and resource similarity Awareness - Answers tends to be greatest when firms have highly similar resources (in terms of types and amounts) to use while competing against each other in multiple markets awareness - Answers affects the extent to which the firm understands the consequences of its competitive actions and responses. motivation - Answers which concerns the firm's incentive to take action or to respond to a competitor's attack, relates to perceived gains and losses Ability - Answers relates to each firm's resources and the flexibility they provide. ability to attack a competitor or respond to its actions - Answers Without available resources (such as financial capital and people), the firm lacks the ? first movers - Answers those taking an initial competitive action, often earn above-average returns until competitors can successfully respond to their action and gain loyal customers awareness, motivation, or ability required to engage in this type of competitive behavior. - Answers Not all firms can be first movers in that they may lack the ? second mover - Answers the firm responding to the first mover's action avoid the early entrant's mistakes and find ways to improve upon the value created for customers by the first mover's good or service - Answers By studying the first mover's product, customers' reactions to it, and the responses of other competitors to the first mover, the second mover can late movers - Answers those that respond a long time after the original action was taken) often are lower performers and much less competitive. Organizational size - Answers tends to reduce the number of different types of competitive actions that large firms launch while it results in smaller competitors' using a wide variety of actions. product quality - Answers ? is a base denominator to successful competition in the global economy. 1. The type of competitive action (strategic or tactical) the firm took, 2. the competitor's reputation for the nature of its competitor behavior 3. its dependence on the market in which the action was - Answers what 3 things are studied to predict a competitor's response to the firm's action strategic responses - Answers In general, the number of tactical responses taken exceeds the number of ? launch a strong response - Answers In most cases, the firm can anticipate that when its competitor is highly dependent for its revenue and profitability in the market in which the firm took a competitive action, that competitor is likely to ? to respond to a particular action that affects only one of the markets in which they compete. - Answers firms that are more diversified across markets are less likely to ? Market characteristics - Answers ? affect the set of actions and responses firms take while competing in a given market as well as the sustainability of firms' competitive advantages Standard-cycle markets - Answers are between slow-cycle and fast-cycle markets, in that firms are moderately shielded from competition in these markets as they use competitive advantages that are moderately sustainable. differs by type of market. - Answers Firms should recognize that the set of competitive actions and responses taken by all firms ? -to launch competitive actions -to be quicker -to be nimble and flexible competitors -to rely on speed and surprised to defend their competitive advantage -to have flexibility needed to launch a greater variety of competitive actions - Answers small firms are more likely to (5): large firms - Answers -more likely to initiate competitive as well as strategic actions over time large firms - Answers -often have greater slack resources large firms - Answers -tend to rely on a limited variety of competitive actions, which can ultimately reduce their competitive success quality - Answers exists when the firm's goods or services meet or exceed customers' expectations quality - Answers may be the most critical component in satisfying the firm's customer eliminate response or increase response time - Answers to outcompete your rival, you should ?