Deck 6: Understanding Competitors: Analysis to Action

Question 1

By studying competitors and implementing change, companies can create strategic advantages that help them to create a better market share.

Answer 1

True

Question 2

Typically, marketing managers have difficulty determining which competitors are direct competitors.

Answer 2

False

Question 3

The movement of raw materials into the manufacturing process and on to the final consumer links many companies through a complex logistics network and is known as the raw goods movement.

Answer 3

False

Question 4

In pure competition environments, profit margins are generally lower, and sellers focus on creating cost efficiencies to increase profitability.

Question 5

The primary issue with researching competitors today is not having too much, but having too little information.

Question 6

Teleconnect, a local telephone company, defines itself as a telecommunications company.In regards to corporate culture this is a problem because they should be more specific and refer to themselves as a telephone company.

Question 7

The use of government quotas, import fees, and a host of other regulations are designed to encourage foreign competitors in a country.

Question 8

When you know the goals and objectives of a competitor, you have a pretty good idea of the company's strategy.

Question 9

The difference between an oligopoly and monopolistic competition is in the number of companies operating in the industry.

Question 10

The government cannot provide you with any useful information related to your competitors.

Question 11

By expanding the numbers of potential competitors based on customer options, companies identify direct competitors.

Question 12

Discovering the competition through the customer's eyes expands a company's knowledge and understanding of the customers and the competition.

Question 13

A company's culture is a critical element in competitor analysis.

Question 14

A key question in any merger of two companies operating in the same basic market space is the definition of the market.

Question 15

Product expansion occurs when a company leverages its existing expertise to create new products for existing or new markets.

Question 16

Knowing the company's corporate culture is a poor indicator of potential future strategy.

Question 17

Companies develop product market combinations based on capabilities in a particular product area that it believes are transferable to new markets.

Question 18

Competitor analysis can only identify old opportunities and/or threats, and shows that it is not always possible to learn from competitors.

Question 19

An underutilized source of competitor information is the company's own customers.

Question 20

Internet search engines can give you enormous amounts of both relevant and irrelevant information when researching competitors.One way to filter through the information is to use fee based search sites like ProQuest.

Question 21

Power Circuit, a utility company that operates in Northeast U.S.is required to get approval from state regulatory agencies before increasing the price of its service because it is a(n)______________ company.

A) Publicly traded
B) State owned
C) Monopoly
D) International
E) Bankrupt

Question 22

A(n)_________________ differs from other industry structures in that there are more companies in the industry manufacturing products that are standardized (steel)or differentiated (automobiles).

A) Monopoly
B) Oligopoly
C) Monopolistic competition
D) Pure competition
E) None of the above

Question 23

When a company creates a new market by understanding its competitors and listening to the market, it is called __________________.

A) International orientation
B) Market share optimization
C) Competitor orientation
D) Customer orientation
E) Operations management

Question 24

When all major airlines were suffering because of environmental and competitive issues, Southwest thrived because __________________.

A) Southwest studied its competitors and implemented new strategies to strengthen its position
B) Southwest copied its competitors' strategies
C) Southwest recognized customers desires for technology and purchased the newest and most sophisticated planes
D) Southwest didn't pay attention to the competitive environment and did what it thought was best
E) Southwest focused on customers only

Question 25

The degree of competition is very high among a small group of major competitors in a ___________.

A) Monopolistic competition
B) Pure competition
C) Monopoly
D) Oligopoly
E) Target market

Question 26

A(n)_____________ exists when a market is controlled by a single company offering one set of products.

A) Monopoly
B) Oligopoly
C) Monopolistic competition
D) Pure competition
E) None of the above

Question 27

In an oligopoly, products that are different allow you to create perceived differences based on all of the following except _____________.

A) Quality
B) Savings
C) Features
D) Service
E) Performance

Question 28

The merger between XM and Sirius Satellite Radios required approval from the Justice Department because it was argued that the merger would create a(n)___________.

A) Market Space
B) Partnership
C) Monopoly
D) Oligopoly
E) Target market

Question 29

Robinson Steelco is a steel company offering standardized products to its customers.Robinson has found it difficult to break out and charge a premium price for its products.This is an example of a(n)______________.

A) Industry slowdown
B) Differentiated company
C) Stagnant market
D) Monopoly
E) Oligopoly

Question 30

In a pure competition, there are ___________ competitors.

A) None
B) Some
C) Many
D) 1-2
E) 2-3

Question 31

Samantha Wilson, Marketing Manager for CHEP U.S.A., described CHEP's direct competitors as other organizations that have similar resources, but pointed out that CHEP's competitive advantages are _________________.

A) Pallet recycling and repair
B) Renting and leasing pallets and containers
C) Global product range and geographical reach
D) Transportation contracts
E) None of the above

Question 32

When a manufacturer starts to open stores to directly reach customers, the manufacturer is integrating _____________ on the supply chain.

A) Backward
B) Forward
C) Left
D) Right
E) None of the above

Question 33

In a monopoly there are _____ competitors.

A) 0
B) 1
C) 2
D) 3
E) 4

Question 34

A(n)_________________ exists when many companies offer unique products in different market segments.

A) Monopoly
B) Oligopoly
C) Monopolistic competition
D) Pure competition
E) None of the above

Question 35

You and your friends want to go to dinner tonight.While texting back and forth you narrow down the choices to Chinese or Italian and then to Italian.Finally you choose Café Romana, because of its authentic dishes and excellent staff.Throughout your decision making process, you were analyzing competitors in a ___________.

A) Monopolistic competition
B) Pure competition
C) Monopoly
D) Oligopoly
E) Target market

Question 36

In an oligopoly there are typically ___________ competitors.

A) 0-1
B) 1-2
C) 2-3
D) 3-4
E) 4-5

Question 37

In a monopolistic competition, there are ___________ competitors.

A) None
B) Some
C) Many
D) 1-2
E) 2-3

Question 38

All of the following are factors that affect an industry EXCEPT _____________.

A) Environmental
B) Process
C) International
D) Managerial
E) Financial

Question 39

Monopolies differ from other market environments in that _____________.

A) There is only a single company offering one set of products.
B) There are no direct competitors
C) They have powerful market positions, which can potentially harm consumers.
D) a & c
E) a, b & c

Question 40

When products in an oligopoly are different, it is possible to have _____________ price variability.

A) Unchanging
B) Sinking
C) Lower
D) Greater
E) Zero

Question 41

________________ offer(s)products that may be substituted based on the customer's need and choice options.

A) Direct competitors
B) Indirect competitors
C) Product use
D) Substitution
E) None of the above

Question 42

In a(n)_____________ many companies offer essentially the same product.

A) Monopoly
B) Oligopoly
C) Monopolistic competition
D) Pure competition
E) None of the above

Question 43

_______________ is a third way of defining competitors.Customers often find new uses that alter the original intent or design of a product.

A) Direct competitors
B) Indirect competitors
C) Product use
D) Substitution
E) None of the above

Question 44

Companies can set the benchmark in a new product area by developing _____________ that are transferable to the new market.

A) Product market combinations, such as brand recognition
B) New advertising strategies
C) Target markets
D) "One size fits all" solutions
E) Organizational behaviors

Question 45

The movement of raw materials into the manufacturing process and on to the final consumer links many companies through a complex logistics network and is known as the ____________.

A) Materials procurement process
B) Manufacturing mix
C) Supply chain
D) Inventory management system
E) None of the above

Question 46

Javier owns a technology company that specializes in personalizing home spaces with wireless technologies.Javier focuses most of his business efforts towards research and development in order to create new innovations; his business investors call him a risk taker.This situation best describes Javier's _____________.

A) Risk tolerance
B) Business structure
C) Company culture
D) Business plan
E) Market strategy

Question 47

The supply chain can be altered if a company _____________.

A) Opens its own stores in order to reach customers directly.
B) Changes office supply stores.
C) Creates its own brands and contracting manufacturers to create the products.
D) A & B
E) A & C

Question 48

In _________________, competitors operating in closely related markets expand into new markets to compete more directly.

A) Market expansion
B) Product expansion
C) Product usage
D) Indirect competition
E) Direct competition

Question 49

It is important to determine whom the __________________ views as your competitor.

A) Organization
B) Investor
C) Customer
D) Market
E) Industry

Question 50

Edward is starting to research for his summer vacation next year.He is trying to decide between a trip to a theme park, a trip to another country or a cruise.All of Edward's options best describe a list of ______________.

A) Market expansion
B) Product use
C) Indirect competition
D) Direct competition
E) Market forecasting

Question 51

_________________ offer(s)products considered very close substitutes for a company's current products and services.They operate in the same industry and are already known and part of a competitor analysis.

A) Direct competitors
B) Indirect competitors
C) Product use
D) Substitution
E) None of the above

Question 52

Deon owns a store in his hometown that sells family sized meals of turkeys, hams, casseroles and side dishes.He would be viewed as a _________________ by the well-known national chain that sells very similar products.

A) Potential partner
B) Non-threatening entity
C) Threat
D) Indirect competitor
E) Direct competitor

Question 53

When looking to purchase an item, customers consider products that __________________, not just products related to a particular industry.

A) Solve a problem
B) Are basically the same
C) Meet a need
D) A & C
E) A, B & C

Question 54

Marketing managers need to be aware of how a customer defines competitors on all of these levels except ___________________.

A) National
B) Global
C) Regional
D) District
E) Local

Question 55

Marketing manager for a world renowned auction house, Christine finds it hard to identify direct competitors from a(n)________________ perspective.

A) National
B) Global
C) Stakeholder's
D) Customer's
E) Organizational

Question 56

The _______________________ seeks to expand trade bilaterally between nations and globally among all nations.

A) World Trade Organization (WTO)
B) United Nations (UN)
C) European Union (EU)
D) North American Free Trade Agreement (NAFTA)
E) Organization for Free Trade (OFT)

Question 57

Walter's Pantry, a high-end grocery store, started offering gourmet made-to-eat meals for customers to take home for lunch or dinner.By doing this, Walter's Pantry expanded its indirect competitors to include ________________.

A) Personal Catering Companies
B) Grocery Stores
C) Fast food chains
D) A & B
E) A & C

Question 58

____________________ plays a critical role in defining a company's view of its own competitive environment.A company's tolerance for risk, attitude toward innovation, and willingness to invest in research and development are among the characteristics that play a part in decisions to enter new markets and create new products.

A) Risk tolerance
B) Business structure
C) Company culture
D) Business plan
E) Market strategy

Question 59

Pure competition is defined by _____________.

A) No differentiation among the products
B) Low marketing communication costs
C) Generally lower profit margins
D) A & B
E) A, B & C

Question 60

A company with the reputation of being leader in innovation tends to be ______________.

A) Internationally owned
B) A low risk taker
C) Focused only on its internal operations
D) A market leader in its industry
E) Too focused on research and less focused on getting products to the market

Question 61

Maxim is researching his competitor's workforce.In order to do this, Maxim should look at _____________________.

A) The number of employees currently working at the company.
B) Current recruiting efforts by the company.
C) The salary ranges of major jobs at the company.
D) The hiring polices of the company.
E) All of the above.

Question 62

When new CEOs enter an organization, it is common for them to _____________ their previous efforts at past companies when implementing new strategies.

A) Integrate
B) Avoid
C) Disregard
D) Merge
E) None of the above

Question 63

Over time, most companies develop a _______________.This _______________ is affected by and, in turn, influences the company culture.

A) Bottom line
B) Reputation
C) Marketing mix
D) Competitive analysis
E) Strategic plan

Question 64

Harold used to sell his teas through multiple teahouses throughout the country.Recently he decided to open storefronts in popular malls to sell his tea directly to the customer.Harold's choice to sell directly to the customer is an example of __________________.

A) Production orientation
B) Selling orientation
C) Marketing orientation
D) Backward integration
E) Forward integration

Question 65

_________________________ enables companies to test competitor reaction to possible strategic scenarios such as product modifications or new advertising campaigns.

A) Research analysis
B) Competitive scenario analysis
C) Situation analysis
D) Environmental survey
E) SWOT analysis

Question 66

Clayton is aware that the ability to access financial resources and a quality workforce represents a significant advantage for a competitor.In order to understand his competitive landscape, Clayton should _____________________.

A) Find out the company's bond rating.
B) Determine the company's investment in plants and equipment.
C) See what the company's stock performance has been over the past twelve months.
D) A, B, & C
E) A & C

Question 67

A company's _______________ is a critical element in competitor analysis.A good way to valuate it is to look at the company's senior management team.

A) Location
B) Culture
C) Customer Orientation
D) Product Mix
E) Marketing Mix

Question 68

The best candidates for acquisitions or merger are candidates that are _________, ____________ competitors with ___________ growth opportunities.

A) Small, successful, good
B) Small, not quite successful, some
C) Large, successful, limited
D) Large, very successful, no
E) International, somewhat successful, few

Question 69

Pain Perdu, a sit-down restaurant popular in France, has begun to freeze and ship its famous dishes to the United States for sale in grocery stores.This is an example of _____________.

A) Market expansion
B) Product expansion
C) Product usage
D) Indirect competition
E) Direct competition

Question 70

Xavier started to grow a garden of fresh herbs and vegetables at his house for use in his restaurant, and reduced his need to purchase these items from his supplier.This is an example of _____________.

A) Production orientation
B) Selling orientation
C) Marketing orientation
D) Backward integration
E) Forward integration

Question 71

Company X lowers prices on its gaming systems two days before the traditional Day after Thanksgiving sales, causing other companies to adjust their pricing strategies accordingly, thereby demonstrating a ______________________.

A) Research analysis
B) Competitive scenario analysis
C) Situation analysis
D) Environmental survey
E) SWOT analysis

Question 72

When GE switched from Jack Welch, to Jeffrey Immelt as CEO, the company experienced a change in culture away from _____________ and towards _____________.

A) Aggression, vulnerability
B) Vulnerability, aggression
C) Innovation, growth
D) Growth, innovation
E) Focus, Creativity

Question 73

Steve Jobs is known for looking at the products that his company is an expert in, recognizing its strengths and using that information to expand into new product lines.This is an example of ____________.

A) Market expansion
B) Product expansion
C) Product usage
D) Indirect competition
E) Direct competition

Question 74

Christo Enterprises just hired new a CEO, Yvonne.Previously Yvonne worked as CEO for a competitor that was known for cutting costs and redirecting the company focus on core business.Yvonne will probably ____________ at Christo Enterprises.

A) Slash prices
B) Raise prices
C) Cut costs
D) A&B
E) A, B & C

Question 75

A company that moves toward the end user is engaged in __________________.

A) Production orientation
B) Selling orientation
C) Marketing orientation
D) Backward integration
E) Forward integration

Question 76

In __________________, companies merge operations back up the supply chain away from the consumer.

A) Production orientation
B) Selling orientation
C) Marketing orientation
D) Backward integration
E) Forward integration

Question 77

Gerry owns the top catering business in Savannah, while Rosalie owns an old mansion popular for rent for private parties and weddings.Fueled by the desire to offer customers a more sophisticated solution, Gerry and Rosalie have decided to partner to offer certain party packages.Gerry and Rosalie are ___________________.

A) Indirect competitors
B) Direct competitors
C) Completing an acquisition
D) Merging
E) Defending market space

Question 78

Companies frequently follow and utilize an established ___________________, which allows competitors to study particular trends in relation to another company.

A) Product allocation plan
B) Marketing mix
C) Sales flow chart
D) Strategic model
E) Business calendar

Question 79

Autumn has run a successful full service spa for the past 10 years.This year she decided to open a nail boutique, which specializes in manicures and pedicures on the go.This is an example of ____________.

A) Market expansion
B) Product expansion
C) Product usage
D) Indirect competition
E) Direct competition

Question 80

____________ occurs when a company leverages its existing expertise (technical product experience or supply chain)to create new products for existing or new markets.

A) Market expansion
B) Product expansion
C) Product usage
D) Indirect competition
E) Direct competition