Chapter 11: Dealing with Competition
GENERAL CONCEPT QUESTIONS
Multiple Choice
1. Michael Porter has identified five forces that determine the intrinsic long-run
attractiveness of a market or market segment. Which of the following would NOT be
among Porter’s five forces?
a. Industry competitors
b. Technological partners
c. Substitutes
d. Buyers
e. Potential entrants
Michael Porter identificou cinco forces que determinam a atratividade intrínsica de longo
prazo de um mercado ou de um segmento de mercado. Identifique a que não faz parte das
cinco forças.
2. Which of the following would be the most likely threat that is associated with
potential new entrants in Porter’s segment structural attractiveness model?
a. Threat of positioning
b. Threat of response
c. Threat of delayed action
d. Threat of role reversal
e. Threat of mobility
Qual das seguintes é , provavelmente, a mais associada com novos entrantes potenciais
no modelo Porter de atratividade estrutural de um segmento.
3. A segment is unattractive when there are actual or potential ________ for the product.
a. contenders
b. competitors
c. substitutes
d. unclear demand
e. profit fluctuation
Um segmento não é atrativo quando existem potenciais ou reais………………..para o
produto.
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4. Wal-Mart is perhaps one of the best illustrations of the threat of ________ found in
Porter’s model.
a. intense segment rivalry
b. new entrants
c. substitute products
d. buyers’ growing bargaining power
e. suppliers’ growing bargaining power
Wal-Mart é, talvez, uma das melhores
.............................encontrada no Modelo de Porter.
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5. A segment is unattractive if the company’s suppliers are able to raise prices or reduce
quantity supplied. Which of the following is the best illustration of the threat of
suppliers’ growing bargaining power?
a. Wal-Mart has almost no competitors in its market space.
b. Oil companies must purchase a significant amount of their product from OPEC.
c. McDonald’s is the largest fast food franchise and is still growing.
d. The U.S. Post Office has merged package operations with FedEx.
e. Sears unsuccessfully attempted to compete with Wal-Mart and Kmart.
Um segmento não é atrativo se os fornecedores da empresa tem condições de aumentar
preços ou de reduzir a quantidade fornecida. Qual é o melhor exemplo de ameaça de
crescimento do poder de barganha do fornecedor.
6. A(n) ________ is a group of firms that offer a product or class of products that are
close substitutes for one another.
a. industry
b. cartel
c. cooperative
d. monopoly
e. demand field
7. When only one firm provides a certain product or service in a certain country or area
a ________ exists.
a. duopoly
b. monopoly
c. oligopoly
d. monopolistic competition
e. pure competition
8. Which of the following would be the best illustration of a pure oligopoly?
a. Autos
b. Cameras
c. Steel
d. Pharmaceuticals
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e. High fashion clothing
9. Which of the following is often considered to be a good illustration an industry
structure type known as pure competition?
a. Oil
b. Plastics
c. Pharmaceuticals
d. High fashion clothing
e. Stock market
10. All of the following are considered to be major entry barriers in markets EXCEPT
________.
a. high capital requirements
b. economies of scale
c. patents and licensing requirements
d. product or service line
e. reputation requirements
11. If a marketer is facing government restrictions, high vertical integration, emotional
barriers, low asset-salvage value due to obsolescence, and legal obligations to
creditors, the marketer is most likely facing what are called ________ barriers in a
marketplace.
a. exit
b. entrance
c. competitive
d. virtual
e. contrived
12. Major oil producers carry on oil exploration, oil drilling, oil refining, chemical
manufacture, and service-station operation. When an organization does all of these
separate tasks within a distribution channel they can be said to have achieved what is
called ________.
a. vertical integration
b. horizontal integration
c. concentric integration
d. parallel marketing
e. conglomerate marketing
13. Using the market approach, ________ are companies that satisfy the same customer
need.
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a.
b.
c.
d.
e.
partners
competitors
entrepreneurs
innovators
followers
14. A group of firms following the same strategy in a given target market is called
________.
a. cartel
b. cabal
c. cooperative
d. informal alliance
e. strategic group
15. An example of a strategic group in the appliance industry would be one where
________.
a. there was a large franchised dealer system
b. a common promotional theme used
c. competitors had broad lines, medium manufacturing costs, low service
responsibility, and low prices
d. multinational operations are mandated
e. a value orientation rather than a cost orientation
16. Once a company has identified its main competitors and their strategies, it must next
ask: ________?
a. What are the competitors’ objectives
b. What are the competitive brand attributes
c. What are the competitive promotion schemes
d. What is the attrition rate in the market
e. What are the subtle market entrance requirements
17. In general, a company should monitor the following variables when analyzing
competitors: ________, share of mind, and share of market.
a. share of demand
b. share of profits
c. share of promotion
d. share of universe
e. share of heart
18. ________ is the percentage of customers who named the competitor in responding to
the statement, “Name the company from which you would prefer to buy the product.”
a. Share of market
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b.
c.
d.
e.
Share of mind
Share of heart
Share of competitive space
Share of psychological field
19. Most companies aim their competitive shots at ________ competitors, because this
requires fewer resources per share point gained.
a. strong
b. weak
c. distant
d. “good”
e. Unacknowledged
20. ________ competitors try to buy market share rather than earn it; take large risks;
invest in overcapacity; and upset industrial equilibrium.
a. “Bad”
b. “Good”
c. Distant
d. Close
e. Strong
21. In general, a market leader will have about ________ of the total market in relation to
other competitors.
a. 60 percent
b. 50 percent
c. 40 percent
d. 30 percent
e. 75 percent
22. The market nicher serves small market segments not being served by larger firms.
Nichers account for about ________ of the market in relation to other competitors.
a. 30 percent
b. 25 percent
c. 20 percent
d. 15 percent
e. 10 percent
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23. The aim of benchmarking is to copy or improve on ________, either within an
industry or across industries.
a. profitability
b. manufacturing
c. ideation
d. aggressiveness
e. “best practices”
24. Being a market leader is often a difficult position to maintain and defend. The market
leader must protect its current market share through good defensive and offensive
actions. Second, the firm can try to increase its market share, even if the market size
remains constant. What is the third course of action recommended for market leaders?
a. The firm must find be a cost leader.
b. The firm must find new, innovative technologies on a monthly basis.
c. The firm must strive to win promotional awards.
d. The firm must find ways to expand total market demand.
e. The firm must pursue markets others do not want.
25. As a marketing manager, you have decided to pursue new customers with your
established products. Specifically, the new customers that you want are those who
might use the product but do not at present. Which of the following strategies is
recommended to pursue such a customer market?
a. Market-penetration strategy
b. New-market segment strategy
c. Geographical-expansion strategy
d. Needs-assessment strategy
e. Consolidation strategy
26. One of the market leader strategies for expanding the total market is to focus on more
usage. Two avenues are open for doing this: increasing the frequency of consumption
or ________.
a. increasing adherence to everyday low pricing
b. decreasing the number of product returns
c. increasing the level or quantity of consumption
d. increasing the level of promotional expenditures relative to market share
percentage
e. decreasing sales-related expenses
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27. To counter value-based players, it will be necessary to focus on areas where their
business models give other companies room to maneuver. For example, instead of
directly competing with Wal-Mart and other retailers, Walgreen’s emphasizes
convenience across all elements of its business. Which of the following general
strategies is Walgreen’s using as its main competitive focus?
a. Execution
b. Implementation
c. Vertical integration
d. Differentiation
e. Cost leadership
28. Market leaders are constantly under attack from large and small competitors alike.
What is the most constructive response a market leader can make when defending its
terrain?
a. Basic cost control.
b. Expanding expected benefits.
c. Expanding desired benefits.
d. Meet all challengers with a swift response.
e. Continuous innovation.
29. Caterpillar has become dominant in the construction-equipment industry despite
charging a premium price and being challenged by a number of able competitors. All
of the following have been cited as policies used by Caterpillar to meet its
competitors EXCEPT ________.
a. limited-line strategy
b. premium performance
c. superior service
d. extensive and efficient dealership system
e. good financing
30. Sony is an unusual market leader. It gives its customers new products that they have
never even asked for (e.g., Walkmans, VCRs, video cameras, CDs). This makes Sony
a(n) ________ firm.
a. market-driven
b. market-driving
c. operations-driven
d. vision-driven
e. virtually-driven
31. ________ defense involves occupying the most desirable market space in the minds
of the consumers, making the brand almost impregnable.
a. Position
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b.
c.
d.
e.
Flank
Preemptive
Mobile
Contraction
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32. A marketing manager has planned a strategy that will require that the organization
erect outposts to protect its weak front-running brands. Because these outposts will be
central to the organization’s new competitive strategy, we can say that a ________
defense is being used.
a. position
b. flank
c. preemptive
d. counteroffensive
e. mobile
33. The “best defense is a good offense” would be a policy under which of the following
market leader defensive strategies?
a. Position defense
b. Flank defense
c. Contraction defense
d. Preemptive defense
e. Lateral defense
34. Market broadening and market diversification are likely tactics employed in which of
the following market leader defensive strategies?
a. Position defense
b. Flank defense
c. Preemptive defense
d. Counteroffensive defense
e. Mobile defense
35. Because the cost of buying higher market share may far exceed its revenue value, a
company should consider four factors before pursuing increased market share. All of
the following would be among those four factors EXCEPT ________.
a. the possibility of provoking antitrust action
b. economic cost
c. pursuing the wrong marketing-mix strategy
d. the likelihood that an award-winning promotional campaign can be generated
e. the effect of increased market share on actual and perceived quality
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36. Some market leaders have increased profitability by selectively ________ market
share in weaker areas.
a. decreasing
b. increasing
c. protecting
d. sharing
e. trading
37. All of the following companies have been characterized as being market challengers
in their respective fields EXCEPT ________.
a. Toyota
b. British Airways
c. Boeing
d. Honda
e. Proctor & Gamble
38. A market challenger must decide who to attack. All of the following are considered as
likely possible targets (as per information found in the text) EXCEPT ________.
a. it can attack the market leader
b. it can attack firms its own size that are not doing the job
c. it can attack firms its own size that are underfinanced
d. it can attack a global conglomerate that is market hungry
e. it can attack small local firms
39. All of the following are considered to be viable attack strategies that can be employed
by a market challenger EXCEPT ________.
a. counteroffensive attack
b. frontal attack
c. flank attack
d. bypass attack
e. guerilla warfare
40. According to attack strategies available to the market challenger, the ________ can
be used when the challenger spots areas where the opponent is underperforming.
a. encirclement attack
b. frontal attack
c. flank-geographic-attack
d. backwards-flank-attack
e. guerilla warfare
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41. Sally Seabrook is an up-and-coming marketing manager for a large department store
chain. Ms. Seabrook has distinguished herself with bold strategies such as launching
attacks on her primary competitor from several fronts (including advertising, new
store openings, price cuts, new distributor alliances, and creative merchandising).
Her “blitz” is comparable to any done by the military in time of war. Which of the
following market challenger attack strategies is Ms. Seabrook using to attack her
competition?
a. Frontal attack
b. Bypass attack
c. Guerrilla warfare
d. Flank attack
e. Encirclement attack
42. A marketing manager of a market challenger-type organization has decided to
“leapfrog” competition by moving into cutting-edge technologies. This indirect
approach to attacking competition can be characterized as being what is called the
________.
a. flank attack
b. encirclement attack
c. bypass attack
d. guerrilla warfare
e. frontal attack
43. A market challenger strategist must carefully consider all attack options before
moving forwards. If the strategist chooses the ________ approach, selective price
cuts, intense promotional blitzes, and occasional legal action will probably be
commonplace in the strategic design.
a. frontal attack
b. flank attack
c. bypass attack
d. encirclement attack
e. guerilla warfare
Answer: e
Page: 358
Level of difficulty: Hard
44. All of the following are considered to be valid market challenger attack strategies
EXCEPT ________.
a. price discounts
b. lower price goods
c. prestige goods
d. partnerships with rival market leaders
e. product proliferation
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45. Avon became a major cosmetics company by perfecting door-to-door selling instead
of battling other cosmetic firms in conventional stores. This is an example of which
of the following specific market challenger attack strategies?
a. Manufacturing-cost reduction
b. Intensive advertising promotion
c. Distribution innovation
d. Product innovation
e. Product proliferation
46. Which of the following best describes the premise of Theodore Levitt’s “Innovative
Imitation” article?
a. Imitation is wrong and should be punished.
b. Product imitation might be as profitable as a strategy of product innovation.
c. Innovation is not possible without substantial imitation.
d. Innovation cannot begin unless dissatisfaction with imitation occurs.
e. Imitation should be against the law because of the intellectual property decision
involved.
47. Many companies prefer to follow rather than challenge the market leader. Patterns of
________ are common in capital-intensive, homogeneous-product industries, such as
steel, fertilizers, and chemicals. Competitors present similar offers to buyers, usually
by copying the leader. Market shares show high stability.
a. “conscious parallelism”
b. “feature fashion”
c. “covert security analysis”
d. “supply delay”
e. “predatory pricing”
48. All of the following are considered to be viable market follower strategies EXCEPT
________.
a. counterfeiter
b. cloner
c. imitator
d. innovator
e. adapter
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49. As a market follower strategy, the ________ emulates the leader’s products, name,
and packaging, with slight variations.
a. counterfeiter
b. cloner
c. imitator
d. adapter
e. innovator
50. As a market follower strategy, the ________ copies some things from the leader but
maintains differentiation in terms of packaging, advertising, pricing, or location. This
strategy is tolerated by the market leader as long as the follower’s aggressiveness
does not mount.
a. counterfeiter
b. cloner
c. imitator
d. adapter
e. innovator
51. An alternative to being a market follower in a large market is to be a leader in a small
market. This type of competitor is called a(n) ________.
a. marketing knave
b. market nicher
c. segment king
d. guerilla marketer
e. strategic clone
52. Which of the following tennis shoe companies is considered to be a market nicher?
a. New Balance
b. Adidas
c. Reebok
d. Wal-Mart brand tennis shoes
e. Nike
53. In terms of comparisons with a market leader, whereas the market leader achieves
high volume, the market nicher achieves ________.
a. high margin
b. low margin
c. high promotability
d. medium pricing
e. lower demand
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54. The key idea in successful nichemanship is specialization. Which of the following
specialists would most closely be identified with the characterization of being an
organization that limits its selling to one customer?
a. End-user specialist
b. Vertical-level specialist
c. Customer-size specialist
d. Specific-customer specialist
e. Quality-price specialist
55. A market nicher is considered to be a ________ specialist if the firm specializes in
producing a certain type of product or product feature such as Rent-a-Wreck that
rents only “beat-up” cars.
a. end-user
b. vertical-level
c. customer-size
d. channel
e. product-feature
56. Which of the following strategies for entering a market held by incumbent firms
would be best if the desire was to position away from the dominant brand with a
comparable or premium price and heavy advertising spending to establish the new
brand as a credible alternative?
a. Differentiation
b. Challenger
c. Niche
d. Premium
e. Standard
57. Which of the following types of companies is characterized as having a “fighter
orientation”?
a. Customer-centered
b. Competitor-centered
c. Distribution-centered
d. Promotion-centered
e. Niche-centered
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58. Which of the following types of companies is characterized as being “too reactive”?
a. Competitor-centered
b. Customer-centered
c. Service-centered
d. Distribution-centered
e. Niche-centered
59. Which of the following types of companies is felt to be in a better position to identify
new opportunities?
a. Competitor-centered
b. Consumer-centered
c. Nicher-centered
d. Distribution-centered
e. Organization-centered
60. In a ________ company, the obsession of the company is with the customer, not the
competition.
a. niche-centered
b. price-centered
c. cost-centered
d. customer-centered
e. promotion-centered
True/False
61. Markets have become too competitive to just focus on the consumer alone.
62. A market is unattractive if it already contains numerous, strong, or aggressive
competitors.
63. The most attractive segment is one in which the entry barriers are low and exit
barriers are high.
64. Many businesses have failed to look to the Internet for their most formidable
competitors.
65. An industry is a group of firms that offer a product or class of products that are close
substitutes for one another.
66. In a pure monopoly, a small number of large firms produce products that range from
highly differentiated to standardized.
67. In monopolistic competition, competitor’s focus on market segments where they can
meet customers’ needs in a superior way and command a price premium.
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68. Good illustrations of entry barriers into a market might be legal or moral obligations
to customers, creditors, and employees, high vertical integration, and emotional
barriers.
69. Vertical integration means that a product manufacturer enters into an alliance with
another similar manufacturer to achieve volume discounts in storage or shipping from
a third party.
70.
Using a market approach, competitors are companies that satisfy the same
customer need.
71. A competitor map shows the sales volume of various competitors in a market space.
72. A group of firms following the same strategy in a given target market is called a
strategic alliance.
73. The competitor’s share of a target market is called the share of market.
74. Share of heart is the percentage of customers who named the competitor in
responding to the statement, “Name the first company that comes to mind in this
industry.”
75. As a strategy for expanding the total market, a market-penetration strategy is aimed at
consumers who might use the product but do not at present.
76. The most constructive strategy that a market leader can use to defend its terrain is to
follow the path of “attack before they do.”
77. If a market leader follows a strategy of continuous innovation, it keeps increasing its
competitive strength and value to its customers.
78. Position defense involves occupying the most desirable market space in the minds of
consumers, making the brand almost impregnable.
79. A preemptive defense is basically a strategic retreat until resources can be assembled
for a more advantageous attack.
80. A good way of describing a contraction defense would be to label it a strategic
withdrawal.
81. The market leader should consider several factors before pursuing increased market
share. One of the chief factors for consideration is the effect of increased market
share on actual and perceived quality.
82. After the market leader position, firms that occupy second, third, and lower ranks in
an industry are often called fledgling leaders.
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83. The first step that a market challenger must take in establishing its stance against
competitors is to define its strategic objective.
84. The frontal attack by a market challenger looks for weak spots on the fringe of the
opponent’s defenses because these are natural targets.
85. The most indirect assault strategy that can be used by a market challenger is the
bypass attack where the challenger bypasses the enemy and attacks easier markets to
broaden one’s resource base.
86. The encirclement attack by a market challenger consists of waging small, intermittent
attacks to harass and demoralize the opponent and eventually secure permanent
footholds.
87. Prestige goods is a specific attack strategy that a market challenger can launch for a
higher-quality product and charge a higher price than the market leader.
88. According to an article by Theodore Levitt (“Innovative Imitation”), product
innovation is always a more profitable strategy than product imitation.
89. As one of the market follower strategies, counterfeiting duplicates the leader’s
product and package and sells it on the black market or through disreputable dealers.
90. As a market follower strategy, the adapter emulates the leader’s products, name, and
packaging with slight variations.
91. A typical market challenger strategy is that of being an imitator (e.g., copies some
things from the leader but maintains differentiation in terms of packaging,
advertising, pricing, or location).
92. In a study of hundreds of business units, the Strategic Planning Institute found that
the return on investment (ROI) averaged 27 percent in smaller markets, but only 11
percent in larger markets.
93. One of the chief advantages held by a market nicher is the fact that once a niche is
established it tends to be rather stable and can be “milked for profit” for several years
(i.e., single niching is a preferred strategy).
94. As a niche specialist role, a channel specialist specializes in serving only one channel
of distribution.
95. Hewlett-Packard specializes in the high-quality, high-price end of the hand-calculator
market qualifying the company to be called a quality-price specialist.
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96. If you were a marketing manager of a rival brand of Jell-O, one of the strategies that
could be used to overcome your competitor would be called premium.
97. When Pepsi positions close to the dominant brand (Coke) with heavy advertising
spending and comparable or premium price to challenge Coke’s dominant brand in
the soft drink category, it is following a strategy called differentiation.
98. As a proven strategy for meeting competitors, almost all companies spend the
majority of their time focusing on competitors exclusively.
99. As a result of a competitor-centered company orientation, the company develops a
fighter orientation.
100. A customer-centered company focuses on competitors’ efforts to win customers and
devises strategies to thwart these efforts.
APPLICATION QUESTIONS
Multiple Choice
112.
A market segment’s attractiveness varies with the height of its entry and exit
barriers. Which of the following forces as described by Michael Porter would
most likely be the force being examined if the above situation were to be
considered by a marketing manager?
a. Threat of intense segment rivalry.
b. Threat of new entrants.
c. Threat of substitute products.
d. Threat of buyers’ growing bargaining power.
e. Threat of suppliers’ growing bargaining power.
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113.
During the 2004 holiday season ________ from discounters Wal-Mart, Target,
and even electronics vendors such as Best Buy and Circuit City has pummeled the
toy chains and sent some of them into bankruptcy.
a. creative advertising
b. global alliances
c. pricing pressure
d. regulation pressure
e. superior management knowledge
114.
Marketing managers must be keenly aware of ________—a focus on current
competitors rather than latent ones—or risk becoming extinct.
a. marketing myopia
b. channel myopia
c. promotion myopia
d. competitor myopia
e. consumer myopia
115.
Each marketing manager needs to be aware of the industry in which they
compete. Industries can be classified according to all of the following EXCEPT
________.
a. degree of usage of promotion
b. number of sellers
c. degree of product differentiation
d. degree of vertical integration
e. degree of globalization
116.
The oil and steel industries have unique industrial structure. Which of the
following industry structural types is usually associated with the oil and steel
industries?
a. Pure monopoly
b. Monopolistic competition
c. Pure competition
d. Pure oligopoly
e. Differentiated oligopoly
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117.
All of the following are considered to be exit barriers in a marketplace that must
be considered by the marketing manager EXCEPT ________.
a. emotional barriers
b. high vertical integration
c. government restrictions
d. lack of alternative opportunities
e. economies of scale
119.
When a buyer thinks of performance running shoes, the first name that comes to
mind is Nike. Which of the following variables for analyzing competition would
most aptly apply given the statement above?
a. Share of market
b. Share of mind
c. Share of heart
d. Share of pocketbook
e. Share of innovation
120.
Chevrolet competes with Ford, not with Ferrari. Which of the following
statements (characterizations) of competitors most aptly fits with the competitive
situation faced by Chevrolet when it seeks optimum selection of competitors?
a. Compete with strong competitors.
b. Compete with distant competitors.
c. Compete with parallel competitors.
d. Compete with bad competitors.
e. Compete with close competitors.
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a.
122.
When a regional computer-manufacturing firm began to seek out customers who
lived outside of its traditional market boundaries, the firm was employing which
of the following new customer expansion strategies to expand its total market?
a. Market-penetration strategy
b. New-market segment strategy
c. Geographic-expansion strategy
d. Product differentiation strategy
e. Latent demand strategy
123.
When your competitor delivers more for less, two strategies can be employed to
meet this threat. Such a situation was recently faced by Kmart. Which of the
following combinations would be most appropriate to meet the challenge throwndown by the competitor?
a. Market penetration or product innovation
b. Expansion or standardization
c. Adaptation or innovation
d. Differentiation or execution
e. Computerization or implementation
124.
Which of the following methods for defending market share should be employed
by Caterpillar to hold off competitors when Caterpillar learned that many
competitors were lacking in delivering on parts commitments to customers?
a. Full-line strategy
b. Good financing
c. Zero tolerance for production errors
d. Product innovation
e. Superior service
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125.
In satisfying customer needs, a ________ marketer discovers and produces
solutions customers did not ask for but to which they enthusiastically respond.
Sony is a good illustration of such a marketer.
a. responsive
b. anticipative
c. combative
d. manipulative
e. creative
126.
Firms that occupy second, third, and lower ranks in an industry can adopt two
postures in responding to competition. First, they can attack the leader and other
competitors in an aggressive bid for further market share. Second, they can
________.
a. play ball and not “rock the boat” (market followers)
b. relinquish their own share to industry leaders (market capitulators)
c. not worry about the immediate future and focus on long-term results (market
maturation)
d. form alliances with enemies (market organizational constriction)
e. give up and quit (market abandonment)
127.
To industry leader Boeing, European Airbus is a serious market challenger that
has made rapid gains in the commercial aircraft market in the last few years.
Which of the following has been cited as the chief strategy being employed by
Airbus in its battle with Boeing?
a. Styling.
b. Price discounting.
c. Bribery of purchasing agents.
d. An innovative new product line equipped with modern features.
e. Partnerships with Boeing rivals.
128.
When Avis used the campaign theme, “We’re only second. We try harder.” to
battle rival Hertz, Avis was using a market challenger strategy called ________.
a. lower priced goods
b. price discount
c. product innovation
d. intensive advertising promotion
e. improved services
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129.
Tasteeos, Fruit Rings, and Corn Flakes sell for nearly $1 a box less than leading
cereal brands. Which of the following market follower strategies is being
employed by the cereal manufacturer responsive for the above market entries?
a. Counterfeiter
b. Cloner
c. Imitator
d. Adapter
e. Reverse-innovator
130.
All of the following suggestions have been provided by Adam Morgan for
improving small brands success in competing with larger rivals EXCEPT
________.
a. break with your immediate past
b. build a “lighthouse identity”
c. assume thought leadership of the category
d. create symbols of reevaluation
e. deeply discount products and services
Short Answer
131.
According to information provided in Michael Porter’s model that describes
segment structural attractiveness, the threat of mobility can be encountered. In
which of the five forces described by Porter would such a threat occur?
132.
According to information provided in Michael Porter’s model that describes
segment structural attractiveness, the suppliers’ growing bargaining power is a
real threat. What is considered to the best defense for such a threat?
133.
According to information presented in the text, what form of pressure supplied by
Wal-Mart and others forced many toy retailers into bankruptcy in the 2004
holiday season?
134.
Restaurants and beauty parlors are examples of a form of competition known as
monopolistic competition. Characterize monopolistic competition.
135.
Competitors often face entry, exit, and mobility barriers in a market space. If you
were a organization facing an exit barrier in a market, what type of barrier would
you be facing?
136.
Assume that you are required by your manager to construct a competitor map that
has three concentric rings. What would be the names (subjects) of the three
concentric rings in your map?
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Part 4: Building Strong Brands
137.
You have been asked to form a strategic group in your industry. What is a
strategic group? What two important insights should emerge from your
formulation process?
318
Chapter 11: Dealing with Competition
138. If your company monitors competitive “share of mind,” what is your company
monitoring?
139.
Your marketing manager has asked you to develop a new customer strategy for
your company. Additionally, you have been asked to develop, specifically, a
market-penetration strategy to assist in gaining new customers. Describe a
market-penetration strategy in this context.
140.
Considering how Caterpillar has become dominant in the construction-equipment
industry despite charging a premium price and being challenged by a number of
able competitors, several policies combine to explain Caterpillar’s success. What
are those policies?
141.
As a brand manager, you have decided to implement a preemptive defense to
meet an anticipated competitive challenge. Describe the preemptive defense.
142.
If you were asked to develop a mobile defense for your products that are likely to
come under attack from a market challenger, what would you suggest?
143.
Consider that you have been placed in the role of being a market challenger.
Where (toward which opponents) can you attack?
144.
When a market challenger uses a frontal attack, what is the principle of force?
145.
Your marketing manager has chosen the bypass attack as means of responding to
an industry leader. Describe the ideas contained in the bypass attack.
146.
There are several specialized market challenger attack strategies. One of these has
been used successfully by Baskin-Robbins to establish its position in the icecream industry. List and briefly characterize this attack strategy.
147.
If your company was labeled as an imitator (market follower), what would your
primary strategies for meeting competition be?
148.
As a market follower, you have been labeled as a counterfeiter. Characterize your
label.
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Part 4: Building Strong Brands
149.
A marketing manager declares that an end-user specialist is needed by his firm.
What is an end-user specialist?
150.
You are about to change the emphasis of your organization from a competitorcentered company to a customer-centered one. What are the advantages to making
such a switch?
320