Question 1

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

Organizations in standard-cycle markets typically serve a mass market, where products or services are standardized and widely available, allowing them to reach a broad audience.

Question 2

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

Accepted Answer

In a slow-cycle market, changes occur less frequently, allowing firms to maintain their competitive advantages for longer periods without the threat of rapid imitation or innovation by competitors.

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 tend to rise rapidly.
C) product prices fall quickly in fast-cycle markets.
D) counterattacks from rivals come quickly.

Accepted Answer

In fast-cycle markets, the prices of component parts do not necessarily rise rapidly; rather, the focus is on the rapid obsolescence and competitive pressures that require quick profitability.

Question 4

The competitive actions and responses in __________ markets are designed to seek large market shares, to gain customer loyalty through brand names, and to carefully control the firm's operations in order to consistently provide the same positive experience for customers.
A) standard-cycle
B) fast-cycle
C) slow-cycle
D) intermediate-cycle

Accepted Answer

Standard-cycle markets are characterized by moderate levels of competition and predictable market conditions, where firms focus on gaining large market shares, building customer loyalty, and maintaining consistent operations to ensure a positive customer experience.

Question 5

Economies of scale are critical to success in what type of market?
A) Slow-cycle
B) Standard-cycle
C) Fast-cycle
D) Volatile-cycle

Accepted Answer

Economies of scale are critical in standard-cycle markets where firms compete on the basis of cost efficiency and large-scale production to maintain competitive pricing and market share.

Question 6

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

In a fast-cycle industry, the competitive advantage is not sustainable for long, so companies focus on speed and innovation rather than relying heavily on patents and copyrights.

Question 7

Because Coca-Cola, Nestlé, 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(n):
A) slow-cycle market.
B) standard-cycle market.
C) fast-cycle market.
D) intermediate-cycle market.

Accepted Answer

The bottled water market is a standard-cycle market because the products are similar, and companies compete through brand differentiation and incremental changes rather than rapid innovation or obsolescence.

Question 8

In order to compete effectively, standard-cycle firms need all of the following EXCEPT:
A) large market share.
B) customer loyalty through brand name.
C) careful control of operations to preserve consistency for customers.
D) rapid and continuous product introductions.

Accepted Answer

Standard-cycle firms do not necessarily need rapid and continuous product introductions; this is more characteristic of fast-cycle markets. Instead, they focus on maintaining market share, customer loyalty, and operational consistency.

Question 9

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

Accepted Answer

Reverse engineering is often used in fast-cycle markets where companies need to quickly imitate and improve upon competitors' products to stay competitive.

Question 10

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 desire to shelter the company from imitation of its competitive advantage.
D) standard-cycle markets because innovation is rare, which gives the innovating firm a significant competitive advantage.

Accepted Answer

In slow-cycle markets, firms rely on their competitive advantages for longer periods, making them more protective of their intellectual property to prevent imitation and maintain their market position.

Question 11

The flat-panel television market where prices have come down and competition has become more stable is best characterized as:
A) standard-cycle.
B) fast-cycle.
C) slow-cycle.
D) competitive rivalry.

Accepted Answer

The flat-panel television market is best characterized as a standard-cycle market because prices have stabilized and competition is more predictable, indicating a mature market with moderate innovation and change.

Question 12

Competition between candy makers (e.g., Hershey, Mars, Cadbury, Nestlé, and Godiva) where firms compete in package design (including package downsizing) and ease of availability is characteristic of a(n):
A) slow-cycle market.
B) standard-cycle market.
C) fast-cycle market.
D) intermediate-cycle market.

Accepted Answer

In a standard-cycle market, firms compete on factors like brand loyalty, packaging, and distribution, which aligns with the competition in package design and availability among candy makers.

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 anyone 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 that he has placed his firm in a slow-cycle industry where concerns about protecting unique competencies dominate concerns about market share.
D) realizes that 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 of the following industries can be LEAST described as a slow-cycle market?
A) Freight railroads
B) Pharmaceuticals
C) Cell phone providers
D) Private ownership of highways and bridges

Accepted Answer

Cell phone providers operate in a fast-cycle market due to rapid technological advancements and frequent product updates, unlike the other industries listed.

Question 15

Describe a model of competitive rivalry and explain how companies can use it.

Accepted Answer

The answer of Describe a model of competitive rivalry and...

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 changes and innovation, leading to volatility.

Question 17

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

If Disney's cartoon characters became widely perceived as old-fashioned and unappealing, it would weaken their competitive advantage as the appeal and uniqueness of their characters are central to their proprietary rights and brand strength.

Question 18

An organization's loyalty to its own product would be a competitive disadvantage in a(n) __________ market.
A) slow-cycle
B) standard cycle
C) intermediate-cycle
D) fast-cycle

Accepted Answer

In a fast-cycle market, products and technologies change rapidly, and sticking to one's own product can hinder adaptation and innovation, leading to a competitive disadvantage.

Question 19

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 focus on protecting their competitive advantages, such as proprietary rights, to maintain their market position over time.

Question 20

Consumer goods producers are innovating in terms of healthy products.This type of incremental innovation is typical of:
A) fast-cycle markets.
B) standard-cycle markets.
C) incremental-cycle markets.
D) slow-cycle markets.

Accepted Answer

Standard-cycle markets are characterized by moderate levels of competition and innovation, where firms focus on incremental improvements to products, such as enhancing health benefits in consumer goods.

Quiz 5: Competitive Rivalry and Competitive Dynamics

Goods or services in standard-cycle markets reflect:

Sustained competitive advantage is most achievable in a __________ market.

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

The competitive actions and responses in __________ markets are designed to seek large market shares, to gain customer loyalty through brand names, and to carefully control the firm's operations in order to consistently provide the same positive experience for customers.

Economies of scale are critical to success in what type of market?

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

In order to compete effectively, standard-cycle firms need all of the following EXCEPT:

Reverse engineering is characteristic of:

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

The flat-panel television market where prices have come down and competition has become more stable is best characterized as:

Competition between candy makers (e.g., Hershey, Mars, Cadbury, Nestlé, and Godiva) where firms compete in package design (including package downsizing) and ease of availability is characteristic of a(n) :

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 anyone else does." The CEO:

Which of the following industries can be LEAST described as a slow-cycle market?

Describe a model of competitive rivalry and explain how companies can use it.

__________ markets are often described as volatile and innovative.

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

An organization's loyalty to its own product would be a competitive disadvantage in a(n) __________ market.

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

Consumer goods producers are innovating in terms of healthy products.This type of incremental innovation is typical of: