Deck 2: Markets and Competitive Space

Question 1

 The purpose of _____ is to target new opportunities where buyers' value requirements are not being satisfied by existing products.

A) disruptive innovation
B) commoditization of products
C) benchmarking
D) creating new market space

Answer 1

 creating new market space

Question 2

In the final phase of competition,companies involve in partnering with the objective of controlling industry standards.

Answer 2

False

Question 3

A new competitor entering a market is likely to come from companies competing in other geographical regions with similar products.

Answer 3

True

Question 4

It is important to focus on the distributor of a product when defining the market,since the distributor drives demand for the product.

Question 5

Customer function considers the role or purpose of the good or service.

Question 6

The product-variant product-market structure includes a broad group of products that satisfy a general,yet similar,need.

Question 7

_____ changes products into commodities,making it difficult for companies to earn anything more than subsistence returns from those products.

A) Disruptive innovation
B) Modularization
C) Cannibalization
D) Segmentation

Question 8

Which of the following is the final step in analyzing the competition?

A) Anticipating actions by competitors
B) Evaluating key competitors
C) Identifying and evaluating potential competitors
D) Identifying key competitors

Question 9

_____ refers to firms using simpler and less costly ways to match the value requirements offered by the products of incumbent firms serving the market.

A) Modularization
B) Commoditization of product designs
C) Disruptive innovation
D) Creating new market space

Question 10

Sales forecasts,typically,fall short of market potential.

Question 11

In the initial stage of competition,the competitors concentrate on market share for end products and profits.

Question 12

 When modularization occurs,products become commodities.

Question 13

Which of the following is the first step in defining and analyzing product-markets?

A) Forecasting market size
B) Determining the boundaries of the market
C) Analyzing competition
D) Predicting rate of change of the market

Question 14

The influence of competing brands becomes weaker with closer substitutability and more direct competition.

Question 15

 Which of the following is the second step in analyzing product-markets? 

A) Analyze competition
B) Form the product-market
C) Forecast market size and rate of change
D) Analyze end users

Question 16

Which of the following is the most direct type of competition?

A) Budget competition
B) Generic competition
C) Product-category competition
D) Product-variant competition

Question 17

 According to Porter's five competitive forces,_____ recognizes that active competition among industry members helps determine industry performance and it is the most direct and intense form of competition. 

A) rivalry among existing firms
B) threat of new entrants
C) threat of substitute products
D) bargaining power of suppliers

Question 18

 _____ analysis is horizontal and only covers similar types of firms and operating practices of the firms. 

A) Value chain
B) Industry
C) Market segmentation
D) Customer profile

Question 19

The value chain analysis considers the vertical network of firms involved in production.

Question 20

 The _____ product-market includes a broad group of products that satisfy a larger common need.

A) generic
B) product-type
C) product-variant
D) larger-type

Question 21

 Explain the competitive box.Why is there a need for strategic thinkers to "think outside the competitive box"? 

Question 22

_____ is the maximum amount of product sales that can be obtained from a defined product-market during a specified time period.

A) Market potential
B) Sales forecast
C) Market share
D) Modularization

Question 23

 Which of the following is the final phase of competition?

A) Partnering of companies with the objective of controlling industry standards
B) Companies competing in identifying product concepts
C) Competitors concentrating on market share for end products and profits
D) Firms focusing on building competencies

Question 24

Which of the following is an advantage of using the time-series analysis in sales forecasting?

A) It utilizes historical data when forecasting.
B) It consumes the least amount of time in forecasting.
C) It is a very subjective type of analysis.
D) It is most effective when forecasting new or innovative products.

Question 25

 Explain how buyers make choices in products and brands. 

Question 26

_____ is the upper limit of sales that can be achieved by all firms for a specified product-market over an indicated time period.

A) Market potential
B) Market share
C) Differential pressure
D) Absolute threshold

Question 27

If critical inputs are in jeopardy or prices of those inputs are extraordinarily high,companies may pursue vertical integration strategies or develop collaborative relationships to reduce the:

A) rivalry among existing firms.
B) bargaining power of buyers.
C) threat of substitute products.
D) bargaining power of suppliers.

Question 28

Which of the following is a major source for new competitors?

A) Companies already targeting similar customer groups with other products.
B) Companies competing in the same regions with different products.
C) Companies competing in a different product-market.
D) Companies with advanced unrelated technologies.

Question 29

 _____ refers to the expected sales for a defined product-market during a specified time period.

A) Market potential
B) Sales forecast
C) Market share
D) Modularization

Question 30

Company sales divided by the total sales of all firms for a specified product-market determines the _____ of a particular firm.

A) market potential
B) absolute threshold
C) relative market position
D) market share

Question 31

_____ is measured by comparing the share of the firm against the competitor with the highest market share in the segment.

A) Market segmentation
B) Relative market position
C) Product differentiation
D) Customer segment

Question 32

 Discuss the differences between a generic product-market and a product-type product-market. 

Question 33

Market entry by a new competitor is likely under which of the following conditions?

A) When markets have matured and growth is slow
B) When major market-entry barriers are present
C) When competition is limited to one or a few competitors
D) When market incumbents' profit margins have declined

Question 34

 Identify Porter's five competitive forces that impact industry performance. 

Question 35

 Identify the three guidelines for defining a product-market.