Question 1

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).

Accepted Answer

The answer of One of the chief advantages held by...

Question 2

As a market follower strategy,the adapter emulates the leader's products,name,and packaging with slight variations.

Accepted Answer

The answer of As a market follower strategy,the adapter emulates...

Question 3

A customer-centered company focuses on competitors' efforts to win customers and devises strategies to thwart these efforts.

Accepted Answer

A customer-centered company focuses on understanding and meeting the needs and preferences of its customers, rather than primarily focusing on competitors' actions.

Question 4

A preemptive defense is basically a strategic retreat until resources can be assembled for a more advantageous attack.

Accepted Answer

A preemptive defense is actually a strategy where one attacks their enemy before they can attack, in order to gain the advantage. It is not a strategic retreat.

Question 5

As a niche specialist role,a channel specialist specializes in serving only one channel of distribution.

Accepted Answer

A channel specialist focuses on serving only one channel of distribution, making them a niche specialist in that particular domain. They have a deep understanding of that particular channel's nuances and are skilled in developing strategies to effectively market products or services through that channel.

Question 6

The market follower typically earns less than the market leader.

Accepted Answer

A market follower is typically a company that imitates the products, services, or strategies of the market leader. As a result, they usually earn less than the market leader due to the higher competition and lower market share.

Question 7

A good way of describing a contraction defense would be to label it a strategic withdrawal.

Accepted Answer

A contraction defense involves strategically withdrawing from certain areas or positions in order to defend a more concentrated and defensible position. This is akin to a fallback plan or a partial retreat, with the intention of consolidating forces and resources for a stronger defense.

Question 8

As a proven strategy for meeting competitors,almost all companies spend the majority of their time focusing on competitors exclusively.

Accepted Answer

While keeping an eye on competitors is important, successful companies also focus on innovation, customer needs, market trends, and internal improvements to maintain and grow their market position.

Question 9

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).

Accepted Answer

The answer of A typical market challenger strategy is that...

Question 10

The first step that a market challenger must take in establishing its stance against competitors is to define its strategic objective.

Accepted Answer

Defining a strategic objective is essential for a market challenger to clearly understand its goals and establish a positioning strategy against competitors.

Question 11

The frontal attack by a market challenger looks for weak spots on the fringe of the opponent's defenses because these are natural targets.

Accepted Answer

A frontal attack by a market challenger typically targets the opponent's strengths rather than their weaknesses, aiming to compete directly with them on those fronts, unlike strategies that look for weak spots which would be more characteristic of a flanking or guerrilla marketing strategy.

Question 12

The encirclement attack by a market challenger consists of waging small,intermittent attacks to harass and demoralize the opponent and eventually secure permanent footholds.

Accepted Answer

An encirclement attack by a market challenger involves launching a broad, comprehensive effort targeting several fronts simultaneously, aiming to establish a strong presence and compete directly with the market leader across a wide range of areas, rather than through small, intermittent attacks.

Question 13

Hewlett-Packard specializes in the high-quality,high-price end of the handheld calculator market,qualifying the company to be called a quality-price specialist.

Accepted Answer

The statement is true as Hewlett-Packard specializes in high-quality, high-price handheld calculators, making them a quality-price specialist.

Question 14

Because market followers avoid stealing competitors' customers and instead copy the leader and present similar offers to buyers,market followers do not need to develop strategies.

Accepted Answer

Market followers still need to develop strategies in order to effectively copy the leader and present similar offers. They may need to differentiate themselves in some way or find ways to offer a better value to customers. Simply copying the leader without a strategy is unlikely to be successful.

Question 15

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.

Accepted Answer

Counterfeiting is a strategy where the follower duplicates the leader's product and package and sells it on the black market or through disreputable dealers.

Question 16

Position defense involves occupying the most desirable market space in the minds of consumers,making the brand almost impregnable.

Accepted Answer

Position defense is about establishing a strong position in the minds of consumers, making it difficult for competitors to displace the brand from that position. This makes the brand almost impregnable, hence the statement is true.

Question 17

After the market leader position,firms that occupy second,third,and lower ranks in an industry are often called fledgling leaders.

Accepted Answer

Firms that occupy second, third, and lower ranks in an industry are not called fledgling leaders, but rather they are referred to as followers or challengers.

Question 18

As a result of a competitor-centered company orientation,the company develops a fighter orientation.

Accepted Answer

A competitor-centered orientation means the company is focused on outperforming their competitors. This often results in a fighter orientation where the company is more aggressive and proactive in their approach to business.

Question 19

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.

Accepted Answer

This statement is true as a bypass attack is a strategy where a market challenger avoids direct confrontation with the market leader and instead targets easier markets to grow its resource base and ultimately challenge the market leader indirectly.

Question 20

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.

Accepted Answer

Increased market share can potentially lead to a decrease in actual and perceived quality if the company expands too quickly and is unable to maintain the same level of quality control. Therefore, the market leader should carefully consider the impact on quality before pursuing increased market share.

Quiz 11: Dealing with Competition