Question 1

Competitive responses to strategic threats, in contrast with those for tactical moves, include containment, shaping, and neutralization among others.

Accepted Answer

Strategic threats require comprehensive responses that address long-term implications, such as containment, shaping, and neutralization, to ensure sustained competitive advantage.

Question 2

The containment competitive response to a strategic threat involves forming a strategic alliance with the threatening organization or forming a group to influence the threatening organization by setting broad standards for accepted and acceptable practices in the industry.

Accepted Answer

The answer of The containment competitive response to a strategic...

Question 3

The annulment competitive response to a strategic threat often involves aggressive actions such as legal maneuvers, giving away benefits offered by a new competitor for free, or engaging in a process of continuously improving existing products.

Accepted Answer

The answer of The annulment competitive response to a strategic...

Question 4

Two occasions when cooperation between competitors may be useful are when competition is unusually destructive or when collaboration can lead to developments that exceed the capacity of any one company.

Accepted Answer

Cooperation between competitors can mitigate destructive competition and enable joint developments that are beyond the reach of individual companies, benefiting all parties involved.

Question 5

A strategic alliance is a joint venture or partnership formed with other companies (sometimes competitors) to develop a new technology, process, or other type of strategically important resource.

Accepted Answer

A strategic alliance involves collaboration between companies, including competitors, to achieve mutual goals such as developing new technologies or resources.

Question 6

According to the opening vignette for the chapter, which of the following is one of the major players in the video game industry?

Accepted Answer

Microsoft, Sony, and Nintendo are all major players in the video game industry, known for their gaming consoles and contributions to gaming technology and content.

Question 7

Short-term competitive moves and countermoves are known as

Accepted Answer

Tactics refer to short-term actions and maneuvers that companies use to gain an advantage over competitors, often in response to competitive moves.

Question 8

Which of the following is one of the characteristics of a benign industry environment?

Accepted Answer

In a benign industry environment, market demand exceeding supply indicates favorable conditions for businesses, as they can sell more products or services without intense competition.

Question 9

Which of the following is not one of the characteristics of a hostile industry environment?

Accepted Answer

In a hostile industry environment, companies are typically very responsive to new entrants to protect their market position, not unwilling to respond.

Question 10

Richard D'Aveni's concept of hypercompetition suggests that the only real source of competitive advantage is

Accepted Answer

Hypercompetition emphasizes the importance of speed and agility in gaining competitive advantage, as markets and technologies rapidly change.

Question 11

_______________ is a process through which a company compares its own processes and structure to that of other organizations, especially targeting direct competitors for the comparison.

Accepted Answer

Benchmarking is the process of comparing a company's own processes and structure to that of other organizations, especially targeting direct competitors for the comparison.

Question 12

This famous technology prediction claimed that the number of transistors placed on an integrated circuit would double about every two years.

Accepted Answer

Moore's law is a famous technology prediction that claims that the number of transistors placed on an integrated circuit would double about every two years.

Question 13

We can classify organizations as Prospectors, Defenders, Analyzers or Reactors based on their ________, which may very well predict what they will do in the future.

Accepted Answer

Organizations can be classified based on their past behaviors, which can provide insights into their future actions and strategies.

Question 14

This type of company tends to view the industry from its own perspective and that of customers rather than being concerned with the competition and is often a leader of industry change.

Accepted Answer

A Prospector company is characterized by its focus on innovation and market opportunities, often leading industry change by prioritizing its own perspective and customer needs over competition.

Question 15

This type of company is intensive rather than extensive; it usually focuses on a limited number of key criteria, analyzes their costs, and vigorously defends its competitive position against all competitors.

Accepted Answer

A Defender company focuses on maintaining a secure niche in a stable product or service area, emphasizing efficiency and cost control to defend its competitive position.

Question 16

This type of company responds--often very slowly--to conditions in the competitive environment and is an unstable form of organization.

Accepted Answer

Reactors are organizations that respond to environmental changes only when forced to do so, often slowly and inefficiently, making them unstable.

Question 17

This type of company either has parts that behave like a Defender and parts that behave like a Prospector or is a firm that can switch between those two "personalities" without a significant negative impact on the organization.

Accepted Answer

An Analyzer is a type of company that combines elements of both Defenders and Prospectors, or can switch between these strategies effectively.

Question 18

Which of the following is a technique, described in the text, for gathering competitive intelligence?

Accepted Answer

The answer of Which of the following is a technique,...

Question 19

This is a company that provides a complete, detailed record of all available public information about any particular organization, area, person or situation.

Accepted Answer

A clipping service collects and provides detailed records of public information about organizations, areas, people, or situations.

Question 20

Which of the following is not a method described in the text for gathering competitive intelligence?

Accepted Answer

Joining fitness centers to which competitors' CEOs belong is not a standard or ethical method for gathering competitive intelligence, as it involves personal intrusion rather than professional information gathering.

Quiz 9: Competitive Dynamics