Question 1

If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ strategy.

Accepted Answer

Microsoft is attempting to discourage potential competitors from entering the market by announcing its plans for a new product, which is an example of preemptive defense.

Question 2

For a market challenger, attacking ________ is a high risk but potentially high payoff strategy, which also allows it to distance itself from other challengers.

Accepted Answer

Attacking the market leader is a high-risk strategy but has the potential for high payoff. By successfully taking on the market leader, the challenger can establish itself as a dominant player in the market and distance itself from other challengers. However, it is important for the challenger to have a strong and differentiated value proposition to successfully compete with the market leader.

Question 3

A marketing manager has planned a strategy that will require the organization to erect outposts to protect its weak front-running brands. In this ________ defense, the outposts will be central to the organization's new competitive strategy.

Accepted Answer

Flank defense involves protecting weaker brands by creating new products or outposts to secure the flank, or weaker side, of the organization. This strategy protects against attacks from competitors targeting the weaker brands.

Question 4

Diageo acquired most of Seagram's brands in 2001 and spun off Pillsbury and Burger King so it could concentrate on powerhouse alcoholic beverage brands such as Smirnoff vodka, J&B scotch, and Tanqueray gin. In this example, Diageo is employing a ________ strategy.

Accepted Answer

Diageo's strategy of spinning off non-core businesses (Pillsbury and Burger King) and focusing on core alcoholic beverage brands (Smirnoff, J&B, Tanqueray) is an example of a contraction defense strategy. This involves reducing the scope and scale of a company's operations by divesting non-core businesses in order to focus on core strengths and improve overall performance.

Question 5

The ________ attack attempts to capture a significant share of the consumer market by launching a grand offensive on several fronts.

Accepted Answer

Encirclement attack attempts to capture a significant share of the consumer market by attacking the competitor's position from all sides. It involves targeting multiple markets, products, and distribution channels simultaneously.

Question 6

Market broadening and market diversification are likely tactics employed in ________ strategies.

Accepted Answer

The answer of Market broadening and market diversification are likely...

Question 7

Apple attacked RIM, the maker of Blackberry, through flanking. The next powerful innovation was not technological but the amazing ease of use and range of applications offered. This is an example of a(n) ________ attack.

Accepted Answer

The statement describes a flank attack, where Apple targeted RIM's weaknesses in ease of use and range of applications, rather than competing directly on technological innovation.

Question 8

When "petroleum" companies such as BP sought to recast themselves as "energy" companies, increasing their research into the oil, coal, nuclear, hydroelectric, and chemical industries, these companies were employing a ________ strategy.

Accepted Answer

A mobile defense strategy involves shifting resources and efforts to adapt to changing market conditions or challenges. The shift in focus from solely petroleum to various forms of energy suggests a mobile defense strategy. The other types of defenses listed (preemptive, counteroffensive, flank, contraction) do not accurately describe the strategy employed by these companies.

Question 9

A firm that is willing to maintain its market share, and not attack the leader and other competitors in an aggressive bid for further market share, is known as a ________.

Accepted Answer

A market follower is a firm that maintains its market share but does not aggressively attack the leader or competitors for further market share. Market challengers seek to gain market share from the leader, while market leaders aim to maintain their dominant position in the market. Market nichers focus on serving a specific segment of the market, while market entrants are new companies entering the market.

Question 10

The defensive marketing strategy wherein a stream of new products are introduced by a firm and are announced in advance are referred to as ________ defense.

Accepted Answer

The definition describes preemptive defense, which involves introducing a steady stream of new products and announcing them in advance to preempt competitors from gaining market share.

Question 11

Sally Sim is an up-and-coming marketing manager for a large department store chain. Ms. Sim has distinguished herself with bold strategies such as launching attacks on her primary competitor from several fronts, including advertising, new store openings, and new distributor alliances. Which of the following market challenger attack strategies is Ms. Sim using to attack her competition?

Accepted Answer

Ms. Sim is using an encirclement attack strategy, as indicated by her comprehensive approach of launching attacks on her primary competitor from several fronts, including advertising, new store openings, and new distributor alliances. This strategy involves attacking the competitor from all sides with the aim of gaining a significant market share.

Question 12

________ is an aggressive maneuver where the firm attacks first, perhaps with guerrilla action across the market and keeping everyone off balance.

Accepted Answer

Preemptive defense is the only option that describes an aggressive maneuver where a firm attacks first. Option A, Position defense, describes a strategy of holding onto a specific market position. Option B, Flank defense, describes a strategy of protecting a weak point in the market. Option C, Contraction defense, describes a strategy of reducing the scope of a business to protect core activities. Option E, Lateral defense, describes a strategy of diversifying into related markets to spread risk.

Question 13

In a ________ defense strategy, the market leader can meet the attacker frontally and hit its flank, or launch a pincer movement so that it's forced to pull back to defend itself.

Accepted Answer

A counteroffensive defense strategy involves attacking the attacker in order to push it back and defend the market leadership. This can be done either by meeting the attacker head-on or by flanking it with a pincer movement, forcing it to retreat and defend itself. It is the most effective strategy when the market leader has significant resources and is able to take on the attacker directly.

Question 14

In a pure ________ attack, the attacker matches its opponent's product, advertising, price, and distribution.

Accepted Answer

In a frontal attack, the attacker goes head-to-head with the competitor, matching every aspect of their marketing mix including product, advertising, price, and distribution.

Question 15

When large companies can no longer defend all their territory, they launch a ________ defense where they give up weaker markets and reassign resources to stronger ones.

Accepted Answer

Contraction defense refers to the strategy of giving up weaker markets and focusing resources on stronger ones. This allows a company to solidify its position in the remaining markets and defend them more effectively. The other options (preemptive, flank, mobile, and position) do not accurately describe this specific defensive strategy.

Question 16

After Olay entered and took over the Indian market with its anti-aging lotion, Ponds decided to defend its home turf by investing heavily in a similar product, but that which used only natural ingredients. This is an example of a ________.

Accepted Answer

The answer of After Olay entered and took over the...

Question 17

Epic Inc., a firm that produces chairs for offices, uses comparative advertising to inform the consumers that its products offer the same features and quality as the competitor's. This is an example of a(n) ________ attack.

Accepted Answer

This is an example of frontal attack, where Epic Inc. is directly comparing its products with the competitors' in terms of features and quality.

Question 18

The ________ can be used when the challenger spots areas where the opponent is underperforming.

Accepted Answer

The flank-geographic attack targets a specific area where the opponent is underperforming. It involves attacking from the side or rear, which allows the challenger to surprise the opponent and take advantage of their vulnerability. The other options are not as effective in targeting a specific weakness in the opponent's performance.

Question 19

A(n) ________ is another name for identifying shifts in market segments that are causing gaps to develop, then rushing in to fill the gaps and developing them into strong segments.

Accepted Answer

The flanking strategy refers to identifying gaps in market segments and quickly developing them into strong segments. The other options listed do not specifically refer to this approach.

Question 20

In ________, the market leader stretches its domain over new territories that can serve as future centers for defense and offense.

Accepted Answer

The answer of In ________, the market leader stretches its...

Quiz 11: Competitive Dynamics