Question 1

Walt Disney's focus on ____ is typical of a slow-cycle market.
A) innovation
B) total quality
C) proprietary rights
D) economies of scale

Accepted Answer

In a slow-cycle market, companies typically focus on building and protecting their proprietary rights, such as trademarks, patents, and copyrights. This is because competition is limited and there are barriers to entry, so companies can establish a dominant position by controlling their intellectual property. Walt Disney was known for continuously investing in and protecting his company's proprietary rights, including creating a team of lawyers to fight for his trademarks and copyrights.

Question 2

Goods or services in standard-cycle markets reflect
A) organizations that serve a mass market.
B) numerous first mover advantages.
C) an inability to sustain a competitive advantage except for brief periods of time.
D) competitive advantages that are shielded from imitation.

Accepted Answer

The answer of Goods or services in standard-cycle markets reflect
A)...

Question 3

Companies in fast-cycle markets need to profit quickly from an innovative product for all of the following reasons EXCEPT
A) the technology used is not proprietary.
B) the prices of component parts tends to rise rapidly.
C) product prices fall quickly in fast-cycle markets.
D) counterattacks from rivals come quickly.

Accepted Answer

The answer of Companies in fast-cycle markets need to profit...

Question 4

What is market commonality? What is resource similarity? How are these concepts combined to identify the level of competition between two firms?

Accepted Answer

The answer of What is market commonality? What is resource...

Question 5

Folger's Coffee recently instituted a change to a plastic container with a handgrip from its traditional metal can. This is
A) an indication that Folger's is competing in a fast-cycle market.
B) an incremental innovation typical of a standard-cycle market.
C) a strategic action directed at coffee house chains such as Starbucks.
D) evidence that Folger's has little loyalty to its products.

Accepted Answer

An incremental innovation of a traditional product would typically occur in a standard-cycle market, as opposed to a fast-cycle market where more radical innovations occur quickly. The change from metal cans to plastic containers with a handgrip is not a strategic action directed at coffee house chains or evidence of disloyalty, but rather a small change to improve convenience and functionality for consumers.

Question 6

Reverse engineering is characteristic of
A) first movers.
B) fast-cycle markets.
C) market leaders.
D) price predators.

Accepted Answer

Reverse engineering involves disassembling a product to understand and replicate its design and functionality. This is typically done in fast-cycle markets where speed to market and innovation are crucial. First movers may not require reverse engineering as they are creating something new, market leaders may not need to reverse engineer their own products, and price predators are focused on undercutting competitors rather than replicating their products.

Question 7

Which industry can be LEAST described as a slow cycle market?
A) Freight railroads
B) Pharmaceuticals
C) Cell phone provider
D) Private ownership of highways and bridges

Accepted Answer

The cell phone provider industry is constantly evolving and changing, with new technology and competition frequenting the market. This makes it least likely to be described as a slow cycle market. Freight railroads, pharmaceuticals, and private ownership of highways and bridges are all industries that have slower rates of change and innovation.

Question 8

The success of HP's launch of a laptop computer sold through Best Buy with a main differentiating feature of the case being silver and white instead of the standard black is an indication of what?
A) The laptop industry is becoming a standard cycle market.
B) The laptop industry is becoming a slow cycle market.
C) The laptop industry is becoming a fast cycle market.
D) HP is lacking slack resources.

Accepted Answer

The answer of The success of HP's launch of a...

Question 9

Sustained competitive advantage is most achievable in a ____ market.
A) slow-cycle
B) medium-cycle
C) standard-cycle
D) fast-cycle

Accepted Answer

Slow-cycle markets are characterized by stable and predictable environments with long product life cycles, high barriers to entry, and slow technological change. This allows firms to invest in and develop resources and capabilities that can lead to sustained competitive advantage. In contrast, fast-cycle markets are characterized by rapid technological change, short product life cycles, and low barriers to entry, making it difficult for firms to maintain a competitive advantage over time. Medium and standard cycle markets are somewhere in between, but also do not provide the level of stability and predictability needed for sustained competitive advantage.

Question 10

An organization's loyalty to its own product is a competitive disadvantage in a ____ market.
A) slow-cycle
B) standard cycle
C) intermediate cycle
D) fast-cycle

Accepted Answer

In a fast-cycle market, products have a short life cycle and rapid innovation is necessary to keep pace with competitors. An organization's loyalty to its own product can limit its ability to quickly adapt to changes and innovate, which is a competitive disadvantage. Slow-cycle, standard cycle, and intermediate cycle markets have longer product life cycles and slower rates of innovation, so loyalty to a product may not be as detrimental to competitiveness in those markets.

Question 11

Lawsuits over patent and copyright infringements are more common and intense in
A) fast-cycle markets because the market is innovation-driven.
B) standard-cycle markets because the firm's brand name is such an important competitive advantage.
C) slow-cycle markets, because of the ability to shelter the company from imitation of its competitive advantage.
D) standard-cycle markets because innovation is rare, and so gives the innovating firm a significant competitive advantage.

Accepted Answer

The answer of Lawsuits over patent and copyright infringements are...

Question 12

Because Coca-Cola, Nestle, and PepsiCo all sell a product (bottled water) that is essentially the same and all three giant companies are engaged in battles for market share using incremental changes in their products and seeking loyalty to brand names, it is most likely that the bottled water market is a(an)
A) slow-cycle market
B) standard cycle market.
C) fast-cycle market.
D) intermediate-cycle market.

Accepted Answer

The answer of Because Coca-Cola, Nestle, and PepsiCo all sell...

Question 13

The CEO of the Wholesome Food retail grocery chain, which specializes in organic and natural produce and meat, has stated, "The key to success is to find your niche and focus on it, regardless of what any one else does." The CEO
A) realizes that he must understand competitors in order to predict their competitive actions and responses.
B) understands that he is the market leader in his niche and thus has a sustainable competitive advantage.
C) believes he has placed his firm in a slow-cycle industry where concerns about protecting unique competencies dominate concerns about market share.
D) realizes his firm has such lower resources than other competitors that his chain is "competitively invisible" to them.

Accepted Answer

The answer of The CEO of the Wholesome Food retail...

Question 14

Which organization has the highest market dependence?
A) a chain of rapid-service oil change shops
B) a manufacturer of chemicals for the international pharmaceutical industry
C) a regional department store having 26 locations in the Northwest
D) a company that specializes in making replacement tiles for the space shuttle

Accepted Answer

The answer of Which organization has the highest market dependence?
A)...

Question 15

In order to compete effectively, standard-cycle firms need
A) organizational slack.
B) economies of scale.
C) first mover capability.
D) innovative products.

Accepted Answer

Standard-cycle firms compete on cost and rely on economies of scale to achieve low costs. Organizational slack may be beneficial for flexibility, but it is not essential for competition in a standard-cycle industry. First mover capability and innovative products are also not critical in standard-cycle industries, as these firms typically focus on producing existing products efficiently rather than creating something entirely new.

Question 16

____ markets are often described as volatile and innovative.
A) Slow-cycle
B) Fast-cycle
C) Standard-cycle
D) Sheltered

Accepted Answer

Fast-cycle markets are characterized by rapid technological advancements and changes, leading to frequent product innovation and high volatility in demand and supply. This can be seen in industries such as technology and fashion. Slow-cycle markets, on the other hand, have stable technologies and demand, leading to slower innovation and less volatility. Standard-cycle markets fall in between these two extremes, with moderate technological change and fluctuation in demand. Sheltered markets, also known as protected or regulated markets, refer to industries that are heavily regulated by the government, such as healthcare or utilities, where entry barriers are high and innovation is limited.

Question 17

A company in a ____ industry is LEAST likely to make heavy use of patents and copyrights.
A) slow-cycle
B) medium-cycle
C) standard-cycle
D) fast-cycle

Accepted Answer

The answer of A company in a ____ industry is...

Question 18

Define competitors, competitive rivalry, competitive behavior, and competitive dynamics.

Accepted Answer

The answer of Define competitors, competitive rivalry, competitive behavior, and...

Question 19

The ability of Disney to maintain its competitive advantage through proprietary rights to its characters would be severely weakened if
A) theme parks with alternative cartoon characters were built in large numbers.
B) numerous lawsuits against copyright thieves tainted the reputation of the company.
C) Disney attempted to move beyond its traditional industry.
D) Disney's cartoon characters became widely perceived as old-fashioned and unappealing.

Accepted Answer

Disney's competitive advantage relies on the popularity and appeal of its cartoon characters. If they were seen as old-fashioned and unappealing, this could significantly weaken the company's competitive advantage. The other choices may pose some challenges for Disney, but they would not necessarily undermine its proprietary rights over its characters.

Question 20

Traditionally, the music industry signed multi-year contracts with artists and sold copyright protected music through established distribution channels. A shift to the digital format and the rise of Internet technology has resulted in the sharing of music over peer-to-peer networks, a practice the industry called "piracy." In recent years, the music industry has seen a rapid decline in the number of CDs sold. At the same time, the ownership of the distribution rights of musical content under copyright laws remains clear. Attempts at innovation by individual record labels to offer music as direct downloads to consumer are quickly copied by other labels. Based on these factors, the best assessment is that the music industry has shifted from a ____ to a ____ cycle market.
A) slow; fast
B) slow; standard
C) standard; slow
D) standard; fast

Accepted Answer

The decline in CD sales, rise of digital format, and easy access to music via peer-to-peer networks indicate that the music industry has shifted from a traditional, standard cycle market to a fast cycle market.

Quiz 5: Competitive Rivalry and Competitive Dynamics

Walt Disney's focus on ____ is typical of a slow-cycle market.

Goods or services in standard-cycle markets reflect

Companies in fast-cycle markets need to profit quickly from an innovative product for all of the following reasons EXCEPT

What is market commonality? What is resource similarity? How are these concepts combined to identify the level of competition between two firms?

Folger's Coffee recently instituted a change to a plastic container with a handgrip from its traditional metal can. This is

Reverse engineering is characteristic of

Which industry can be LEAST described as a slow cycle market?

The success of HP's launch of a laptop computer sold through Best Buy with a main differentiating feature of the case being silver and white instead of the standard black is an indication of what?

Sustained competitive advantage is most achievable in a ____ market.

An organization's loyalty to its own product is a competitive disadvantage in a ____ market.

Lawsuits over patent and copyright infringements are more common and intense in

The CEO of the Wholesome Food retail grocery chain, which specializes in organic and natural produce and meat, has stated, "The key to success is to find your niche and focus on it, regardless of what any one else does." The CEO

Which organization has the highest market dependence?

In order to compete effectively, standard-cycle firms need

____ markets are often described as volatile and innovative.

A company in a ____ industry is LEAST likely to make heavy use of patents and copyrights.

Define competitors, competitive rivalry, competitive behavior, and competitive dynamics.

The ability of Disney to maintain its competitive advantage through proprietary rights to its characters would be severely weakened if