Chapter 5

Question 1

Competitors

Answer 1

firms operating in the same market, offering similar products, and targeting similar customers

Question 2

Competitive Rivalry

Answer 2

the ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantageous market position

Question 3

Competitive Behavior

Answer 3

the set of competitive actions and responses a firm takes to build or defend its competitive advantages and to improve its market position

Question 4

Multi-market Competition

Answer 4

occurs when firms compete against each other in several product or geographic markets

Question 5

Competitive Dynamics

Answer 5

refer to all competitive behaviors – that is, the total set of actions and responses taken by all firms competing within a market

Question 6

Market Commonality

Answer 6

concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each

Question 7

Resource Similarity

Answer 7

the extent to which the firm’s tangible and intangible resources are comparable to a competitor’s in terms of both type and amount

Question 8

Competitive Action

Answer 8

a strategic or tactical action the firm takes to build or defend its competitive advantages or improve its market position

Question 9

Competitive Response

Answer 9

a strategic or tactical action the firm takes to counter the effects of a competitor’s competitive action

Question 10

Strategic Action/Strategic Response

Answer 10

a market-based move that involves a significant commitment of organizational resources and is difficult to implement and reverse

Question 11

Tactical Action/Tactical Response

Answer 11

a market-based move that is taken to fine-tune a strategy; it involves fewer resources and is relatively easy to implement and reverse

Question 12

First Mover

Answer 12

a firm that takes an initial competitive action in order to build or defend its competitive advantages or to improve its market position

Question 13

Second Mover

Answer 13

a firm that responds to the first mover’s competitive action, typically through imitation

Question 14

Late Mover

Answer 14

a firm that responds to a competitive action a significant amount of time after the first mover’s action and the second mover’s response

Question 15

Quality

Answer 15

when the firm’s goods or services meet or exceed customers’ expectations

Question 16

Slow-Cycle Markets

Answer 16

markets in which the firm’s competitive advantages are shielded from imitation, commonly for long periods of time, and where imitation is costly

Question 17

Fast-Cycle Markets

Answer 17

markets in which the firm’s capabilities that contribute to competitive advantages aren’t shielded from imitation and where imitation is often rapid and inexpensive

Question 18

Standard-Cycle Markets

Answer 18

markets in which the firm’s competitive advantages are partially shielded from imitation and imitation is moderately costly