Question 1

According to Richard D'Aveni's model of "hypercompetition," successful companies are the ones that find sustainable competitive advantages.

Accepted Answer

According to Richard D'Aveni's model of hypercompetition, sustainable competitive advantages are becoming increasingly difficult to achieve and maintain. Instead, companies should focus on creating temporary advantages and constantly adapting to new challenges and opportunities.

Question 2

The central concept of the strategic intent model of competitive advantage is an obsession of winning.

Accepted Answer

The strategic intent model of competitive advantage is based on the idea that an organization must be obsessed with winning in order to gain a sustainable competitive advantage over its rivals. This requires a long-term commitment to achieving specific goals and objectives that are aligned with the organization's core values, vision and mission.

Question 3

The strong rivalry in the U.S.market between Dell, Gateway, Hewlett-Packard, Apple, and other computer companies has helped make the United States a world leader in personal computers.

Accepted Answer

The strong competition among computer companies in the U.S. market has led to innovation and advancement in technology, making the United States a leading producer and supplier of personal computers in the global market.

Question 4

Research by Morgan Stanley indicates that the United States is home to more companies with global competitive advantage than any other country.

Accepted Answer

According to research by Morgan Stanley, the United States is home to more companies with global competitive advantage than any other country.

Question 5

According to Michael Porter, chance plays no role in determining the competitive advantage of nations.

Accepted Answer

Michael Porter stresses that chance can play a role in determining a nation's competitive advantage. He argues that the four broad attributes of a nation — factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry — determine its ability to achieve global competitiveness, but chance events such as technological breakthroughs, natural disasters, and political shocks can also impact a nation's competitiveness.

Question 6

A major difference between the flagship model and Porter's is that Porter's is based on the notion of corporate individualism and individual business transactions.

Accepted Answer

The flagship model is based on the notion of interdependence and the coordinated activities of multiple business units within a larger organization, while Porter's model focuses on individual businesses and their competitive advantage. Additionally, the flagship model emphasizes long-term strategic planning and organizational culture, while Porter's model has a more short-term, market-driven focus.

Question 7

In the strategic intent model of competitive advantage, Canon's successful entry into the photocopier market is an example of changing the rules of engagement.

Accepted Answer

The strategic intent model of competitive advantage suggests that changing the rules of engagement can lead to competitive advantage. Canon's successful entry into the photocopier market is an example of this, as they introduced a new technology (plain paper copiers) which disrupted the prevailing industry norms and enabled them to gain a foothold in the market.

Question 8

Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices.In the strategic intent model of competitive advantage, this is an example of "loose bricks."

Accepted Answer

This statement accurately describes the concept of "loose bricks" in the strategic intent model, where a company's focus on one aspect of its business allows competitors to develop advantages in other areas. In this case, Intel's focus on high-end PC microprocessors left room for competitors to develop cheaper chip sets for other electronic devices.

Question 9

Benetton's success in the global fashion industry illustrates the flagship model.

Accepted Answer

The statement is true. Benetton has been successful in implementing the flagship model in the fashion industry.

Question 10

The "layers of advantage" approach to global competitive innovation is based on using know-how developed by other companies.

Accepted Answer

The answer of The "layers of advantage" approach to global...

Question 11

"Active competition for demanding customers in the home market keeps companies under pressure to constantly innovate." This statement is an integral part of Hamel and Prahalad's concept of "strategic intent."

Accepted Answer

This statement is more aligned with Michael Porter's concept of "competitive advantage" rather than Hamel and Prahalad's "strategic intent," which focuses on long-term goals and aspirations.

Question 12

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 these factors in today's business environment lead to an acceleration of competitive forces and undermine market stability.

Question 13

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 Swatch Group is known for its affordable, mass-market watches under various brands such as Swatch, Tissot, and Hamilton. Therefore, this supports the idea that in the low-cost segment, brands compete on price and value.

Question 14

In 1989, Jollibee, the most popular fast-food operator in the Philippines, got an unexpected boost when the threat of a military coup prompted McDonald's to temporarily suspend operations.

Accepted Answer

This is a true statement. Jollibee did receive an unexpected boost in 1989 when McDonald's temporarily suspended operations due to the threat of a military coup. This allowed Jollibee to gain even more popularity and market share in the Philippines.

Question 15

The Komatsu-Caterpillar saga is just one example of how more than the pursuit of generic strategies can shape global competitive battles.

Accepted Answer

The statement accurately describes how the Komatsu-Caterpillar saga illustrates that more factors than just pursuing generic strategies can impact global competition.

Question 16

Rugman and D'Cruz cite Benetton as an example of a flagship firm that excels at building partnerships.

Accepted Answer

Rugman and D'Cruz mention Benetton as an example of a flagship firm that excels at building partnerships.

Question 17

Key suppliers, key customers, and key consumers are all elements of a flagship company's partner network.

Accepted Answer

Key suppliers, key customers, and key consumers are all important components of a flagship company's partner network, as they play a significant role in the company's success and growth. These partners provide essential products, services, and support to the company, helping it to meet the diverse needs of its customers and achieve its business objectives. Therefore, it is important for a flagship company to build strong relationships with these partners and collaborate with them effectively to achieve mutual benefits.

Question 18

The digital revolution rendered Sony's core competencies in analog audio technology obsolete.

Accepted Answer

The digital revolution made analog audio technology less relevant, causing Sony's expertise in it to become less important.

Question 19

"Active competition for demanding customers in the home market keeps companies under pressure to constantly innovate." This statement is consistent with Michael Porter's thesis regarding the competitive advantage of nations.

Accepted Answer

Michael Porter's thesis states that competitive advantage of nations is achieved through constant innovation and improvement, and that domestic competition plays a vital role in this process. Therefore, the statement is consistent with his thesis.

Question 20

"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" is indeed a term that describes an intense, rapidly changing business environment where companies must constantly innovate and adapt to stay competitive.

Quiz 16: Strategic Elements of Competitive Advantage