Question 1

The Savvy Entrepreneurial Firm feature in Chapter 5 focuses on three firms that are doing well in crowded industries as ________.

Accepted Answer

The Savvy Entrepreneurial Firm feature in Chapter 5 focuses on three firms that are doing well in crowded industries by creating meaningful value for customers at a fair price and differentiating themselves from their competitors. Option A is partially correct, but the first-mover advantage is not mentioned as a key factor in their success. Option B is incorrect as passionate leaders and savvy promotional campaigns are not the only factors contributing to their success. Option C is similar to option A, but unique business models are not mentioned as a key factor. Option E is incorrect as low-cost leadership is not mentioned as a key factor in their success.

Question 2

In the context of competitor analysis, ________ competitors offer close substitutes to the product sold by the firm completing the analysis.

Accepted Answer

The answer of In the context of competitor analysis, ________...

Question 3

A firm's future competitors are its most important ones.

Accepted Answer

A firm's most important competitors include both current and potential future competitors, as well as substitutes for its products or services. The importance of competitors can vary over time based on market dynamics, technological advancements, and changes in consumer preferences.

Question 4

What is competitive intelligence? What are some of the ways that a firm can ethically obtain information about its competitors?

Accepted Answer

The answer of What is competitive intelligence? What are some...

Question 5

In the context of competitor analysis, ________ competitors are companies that are not yet direct or indirect competitors but could move into one of these roles at any time.

Accepted Answer

The answer of In the context of competitor analysis, ________...

Question 6

A competitive analysis grid is a tool for organizing the information a firm collects about its competitors.

Accepted Answer

A competitive analysis grid is a commonly used tool for organizing and comparing data on a firm's competitors, including their strengths and weaknesses, market share, pricing strategies, and marketing efforts. By using this tool, firms can gain a better understanding of their position in the market and identify potential opportunities and threats in order to develop effective strategies for growth and success.

Question 7

The three types of competitors a business will face are direct competitors, indirect competitors, and future competitors.

Accepted Answer

This statement is true. Direct competitors are businesses that offer similar products or services and target the same customer base. Indirect competitors are businesses that offer similar products or services but target different customer bases. Future competitors are businesses that may enter the market in the future and offer similar products or services.

Question 8

The first step in a competitor analysis is to determine who the competition is.

Accepted Answer

The first step in a competitor analysis is indeed to identify and determine who the competition is.

Question 9

In the context of competitor analysis, businesses that offer identical or similar products are referred to as ________ competitors.

Accepted Answer

Direct competitors are businesses that offer identical or similar products, and thus compete in the same market space. Option A) immediate, option C) indirect, option D) straight, and option E) urgent are not commonly used terms in the context of competitor analysis.

Question 10

The What Went Wrong? feature in Chapter 5 focused on Digg, a Web site that was once one of the hottest sites on the Internet but eventually failed. According to the feature, through a series of missteps Digg ________.

Accepted Answer

The feature states that Digg "lost its way and its place in its industry" due to a series of missteps, indicating that it failed to adapt to changes in the industry and lost its relevance.

Question 11

Aquafina operates in the bottled water industry. The companies that offer identical or similar products and go after the same customers that Aquafina does are Dasani and Zephyrhills. Dasani and Zephyrhills are Aquafina's ________ competitors.

Accepted Answer

Direct competitors are companies that offer identical or similar products and target the same customers. Dasani and Zephyrhills offer bottled water, just like Aquafina, and compete for the same customers, making them direct competitors. Indirect competitors are companies that offer substitutes or alternatives to a product, and potential or future competitors may not currently be in the market but could potentially enter in the future. Impending is not a relevant term in this context. Potential is a close choice, but direct is a more accurate description of the relationship between the three companies.

Question 12

In the beverage industry, soda, fruit juice, and sports drinks are ________ competitors of bottled water.

Accepted Answer

The answer of In the beverage industry, soda, fruit juice,...

Question 13

The information that is gathered by a firm to learn about its competitors is referred to as ________.

Accepted Answer

The term used to describe the information gathered by a firm to learn about its competitors is competitive intelligence. The other answer choices do not accurately describe this concept.

Question 14

The information that is gathered by a firm to learn about its competitors is referred to as tactical intelligence.

Accepted Answer

The answer of The information that is gathered by a...

Question 15

Amy has just launched a firm in the sports drink industry. She has decided to complete a grid to see how she stacks up against her competitors. Along the horizontal axis of the grid she lists her firm along with her major competitors. Along the vertical axis of the grid she lists the main competitive factors in her industry. Amy is completing a ________.

Accepted Answer

Amy is completing a competitive analysis grid, which compares her firm to her major competitors along various competitive factors. This is a common tool used in strategic analysis to identify areas of strength and weakness relative to the competition. Option A is not specific enough, option B is not a commonly used term, Option D is similar but uses the term "strategic analysis" in the wrong place, and Option E does not make sense in this context.

Quiz 5: Industry and Competitor Analysis