Question 1

How do chance events play a role in shaping the competitive environment?

Accepted Answer

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Question 2

According to the hypercompetition model of competitive advantage,which of the following allows the firm to create an entirely new product or market?

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Question 3

A firm that has the skills to be a "first mover" and arrive first in the market has achieved a know-how advantage.

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Question 4

Which of the following is not an element of Rugman and D'Cruz's flagship model?

Accepted Answer

The flagship model by Rugman and D'Cruz includes key suppliers, key customers, key consumers, and selected competitors, but not focused differentiation.

Question 5

The characteristics of home demand for a firm's products or services include all of the following except:

Accepted Answer

The size of the competitors' share of the home demand is not a characteristic of the home demand itself, but rather an aspect of market competition.

Question 6

According to D'Aveni,in today's business environment,short product life cycles,short product design cycles,new technologies,and globalization undermine market stability;thereby an acceleration of competitive forces takes place.

Accepted Answer

D'Aveni argues that in the modern business environment, factors such as short product life cycles, rapid product design cycles, the introduction of new technologies, and the effects of globalization contribute to a decrease in market stability. This instability accelerates competitive forces, making markets more dynamic and competitive.

Question 7

According to the model developed by Rugman and D'Cruz,the flagship firm is at the center of a collection of three partners.

Accepted Answer

According to the model developed by Rugman and D'Cruz, the flagship firm is at the center of a collection of five partners: key suppliers, key customers, competitors, non-business infrastructure, and the firm itself.

Question 8

According to strategy expert Richard D'Aveni,the actions taken by Swatch in the global watch industry illustrate hypercompetitive dynamic maneuvering in which arena?

Accepted Answer

Swatch's actions in the global watch industry are an example of hypercompetitive dynamic maneuvering in the cost/quality arena, as they focused on producing high-quality watches at lower costs to gain a competitive advantage.

Question 9

The Rugman and D'Cruz's flagship model is evident in the strategies of all but one of the following businesses:

Accepted Answer

Rugman and D'Cruz's flagship model primarily focuses on firms that operate in a network of interrelated businesses, including suppliers, competitors, and non-business infrastructure, which is characteristic of manufacturing and retail companies like Ford, Volkswagen, IKEA, and Benetton. Microsoft, being a technology and software company, does not fit as neatly into this model, which is more aligned with traditional manufacturing and retail sectors.

Question 10

The leading country among the "World's Most Competitive Countries" is:

Accepted Answer

The United States often ranks as one of the world's most competitive countries due to its large economy, advanced technological infrastructure, and highly developed financial markets.

Question 11

"Hypercompetition" refers to companies that are successful and find sustainable competitive advantages.

Accepted Answer

Hypercompetition refers to an environment where competitive advantages are quickly eroded due to the rapid pace of innovation and change, making it difficult for companies to maintain sustainable competitive advantages.

Question 12

"Hypercompetition" is a term that describes a business environment of escalating rivalry characterized by rapid product innovation and short product life cycles.

Accepted Answer

Hypercompetition refers to an environment where there is intense and rapid competitive moves, with firms constantly innovating and shortening product life cycles to gain competitive advantage.

Question 13

In the global watch industry,the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland.In the strategic framework known as hypercompetition,Swatch's success is an example of interactions in which arena?

Accepted Answer

Swatch's success in the global watch industry is an example of interactions in the cost/quality arena, as they were able to produce high-quality watches at a lower cost, which revitalized the Swiss watch industry.

Question 14

The rivalry between Dell,Hewlett-Packard,Gateway,Compaq,and Apple forces all the players to undertake all of the following except:

Accepted Answer

The rivalry among companies like Dell, Hewlett-Packard, Gateway, Compaq, and Apple typically involves developing new products, improving existing ones, lowering costs and prices, and developing new technologies to stay competitive. However, "changing the rules of engagement" is not a common strategy directly related to competition in the technology and computer industry. This phrase could imply altering the fundamental ways companies compete, which is less about direct competition strategies and more about changing industry standards or practices, which is not a direct result of rivalry.

Question 15

Mitsubishi Heavy Industries Ltd.and other Japanese companies manufacture airplanes under license to U.S.firms,and also work as subcontractors for aircraft parts and systems.This type of effort is known as:

Accepted Answer

Collaborating involves working jointly with others or together especially in an intellectual endeavor, which is what Mitsubishi Heavy Industries Ltd. and other Japanese companies are doing by manufacturing airplanes and parts under license and as subcontractors for U.S. firms.

Question 16

Chance events play a role in shaping the competitive environment.Chance events are occurrences which include all of the following except:

Accepted Answer

Annual business meetings are planned events that organizations hold to discuss their operations, strategies, and future plans. They are not considered chance events because they are predictable and scheduled, unlike the other options which are unexpected and can significantly impact the competitive environment in unforeseen ways.

Question 17

Describe how Japanese companies added layers of advantage realizing that the cost advantage may be temporary.

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Question 18

The Swatch Group is the world's second largest watchmaker.This shows that in the low-cost segment,brands compete on price and value.

Accepted Answer

The given statement does not mention anything about the low-cost segment or how brands compete in that segment.

Question 19

The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces.

Accepted Answer

The hypercompetition framework, developed by Professor Richard D'Aveni, describes a business environment characterized by rapid and unpredictable changes in competitive advantages, where companies must continuously adapt to survive.

Question 20

Which of the following is not one of the four arenas in which dynamic strategic interactions are played out in hypercompetitive industries?

Accepted Answer

In the context of dynamic strategic interactions in hypercompetitive industries, the four arenas typically include cost/quality, timing and know-how, entry barriers, and deep pockets. Buyer and supplier power, while important in strategic management and competitive analysis, is not listed among these specific arenas focused on dynamic interactions.

Quiz 16: Strategic Elements of Competitive Advantage