Question 1

Starbucks has a multi-pronged approach to growth. The fact that it operates in 44 different countries is reflective of its geographical-expansion strategy, and the fact that Starbucks sells whole-bean coffees in supermarkets is reflect of its

Accepted Answer

The answer of Starbucks has a multi-pronged approach to growth....

Question 2

Some market leaders have increased profitability by selectively ________ market share in weaker areas.

Accepted Answer

Market leaders can increase profitability by selectively decreasing market share in weaker areas, as this allows them to focus resources on more profitable segments or areas of the market.

Question 3

Market broadening and market diversification are likely tactics employed in which of the following market leader defensive strategies?

Accepted Answer

Market broadening and market diversification are key components of a mobile defense strategy, where a company seeks to expand its territory through new markets or products to protect its current market position.

Question 4

Which of the following companies has been characterized as a "runner-up" or "trailing" firm in its industry?

Accepted Answer

Ford has been characterized as a "runner-up" or "trailing" firm in its industry, particularly compared to Toyota and Honda which are often considered leaders in the automotive industry.

Question 5

A marketing manager of a market challenger-type organization has decided to "leapfrog" competition by moving into cutting-edge technologies. This indirect approach to attacking competition can be characterized as being what is called the

Accepted Answer

The marketing manager's decision to move into cutting-edge technologies is an example of a bypass attack. A bypass attack is an indirect approach where a company circumvents its competitors by introducing a new product or technology. In this case, the company is not directly confronting its competitors but rather "leapfrogging" them with a new technology. This approach can be effective in gaining a competitive advantage and attracting customers who are interested in the latest innovations.

Question 6

The "best defense is a good offense" would be a policy under which of the following market leader defensive strategies?

Accepted Answer

The "best defense is a good offense" is a key principle of preemptive defense, which involves taking proactive steps to maintain market leadership by attacking the competition before they can mount a credible challenge.

Question 7

In satisfying customer needs, a ________ marketer discovers and produces solutions customers did not ask for but to which they enthusiastically respond.

Accepted Answer

The answer of In satisfying customer needs, a ________ marketer...

Question 8

________ become market leaders through superior value delivery of unmet and maybe even unknown consumer needs.

Accepted Answer

Market-driving firms become market leaders by identifying and meeting unmet or unknown consumer needs, rather than simply reacting to the market or trying to respond to existing consumer demands. They actively shape consumer preferences and create new markets through innovation and value creation.

Question 9

Market leaders are constantly under attack from large and small competitors alike. What is the most constructive response a market leader can make when defending its terrain?

Accepted Answer

Continuous innovation is the most constructive response a market leader can make when defending its terrain. It allows the company to stay ahead of the competition and keep improving its products or services. Meeting challengers with a swift response may be important, but it should be done in a way that enhances the company's overall strategy, which can be achieved through continuous innovation. Basic cost control is necessary, but not sufficient, as it may lead to sacrificing quality or innovation. Expanding expected benefits and desired benefits are both important, but they are outcomes of continuous innovation rather than strategies in themselves.

Question 10

Firms that occupy second, third, and lower ranks in an industry can adopt two postures in responding to competition. First, they can attack the leader and other competitors in an aggressive bid for further market share. Second, they can

Accepted Answer

The second option, playing ball and not "rocking the boat", is a common strategy for firms that cannot compete with the leader in terms of size or resources. These firms often choose to follow the leader and adopt similar strategies in order to maintain their market share and avoid direct confrontation. This strategy may also involve focusing on niche markets or unique value propositions that the leader cannot easily duplicate.

Question 11

According to attack strategies available to the market challenger, the ________ can be used when the challenger spots areas where the opponent is under performing.

Accepted Answer

Flank-geographic-attack involves targeting and entering into a market where the competitor is weak. By doing this, the challenger will have a foothold in a new market and the competitor will have to split their attention and resources to address the challenge. This can be an effective strategy for a challenger who has identified underperforming areas of their competitor's market.

Question 12

A market challenger strategist must carefully consider all attack options before moving forwards. If the strategist chooses the ________ approach, selective price cuts, intense promotional blitzes, and occasional legal action will probably be commonplace in the strategic design.

Accepted Answer

The guerilla attack strategy involves small, intermittent actions like selective price cuts, intense promotional efforts, and occasional legal actions to challenge the competitor, rather than direct or large-scale approaches. This strategy is characterized by its flexibility and surprise elements, making it distinct from the more direct and broad strategies like frontal, encirclement, or flank attacks.

Question 13

A market challenger must decide who to attack. Which of the following is a high-risk but potentially high-payoff strategy?

Accepted Answer

Attacking the market leader is a high-risk strategy because the leader likely has strong brand recognition, customer loyalty, and resources, but if successful, it can result in a high payoff by capturing a significant share of the market.

Question 14

Harvey's is a market challenger in the highly competitive fast-food marketplace. Harvey's adopted a ________ in order to occupy a different space from the healthy food bandwagon.

Accepted Answer

Harvey's adopted a flank attack strategy by occupying a different space from the healthy food trend, focusing on offering flame-grilled burgers that are made to order, rather than promoting themselves as a healthy fast-food option. This allowed Harvey's to differentiate themselves from their competitors and attract customers who want a more indulgent, customizable burger experience.

Question 15

Because the cost of buying higher market share may far exceed its revenue value, a company should consider four factors before pursuing increased market share. Which of the following involves putting a strain on the firm's resources?

Accepted Answer

The answer of Because the cost of buying higher market...

Question 16

________ defense involves occupying the most desirable market space in the minds of the consumers, making the brand almost impregnable.

Accepted Answer

The term "occupying the most desirable market space in the minds of the consumers" refers to brand positioning. This involves creating a unique and compelling image of the brand in the minds of consumers, in order to make it difficult for competitors to displace the brand from that position. Therefore, the correct answer is position.

Question 17

A marketing manager has planned a strategy that will require that the organization erect outposts to protect its weak front-running brands. Because these outposts will be central to the organization's new competitive strategy, we can say that a ________ defense is being used.

Accepted Answer

The use of outposts to protect weak front-running brands is a classic example of flank defense. Flank defense involves creating defenses (such as outposts or barriers) on the flanks or sides of the organization to protect its weaker areas. In this case, the outposts are being erected to protect the weak brands from attack, and they will play a central role in the organization's new competitive strategy.

Question 18

In which of the following viable attack strategies that can be employed by a market challenger does the attacker match its opponent's product, advertising, price, and distribution?

Accepted Answer

The viable attack strategy that matches its opponent's product, advertising, price, and distribution is a frontal attack. In a frontal attack, the market challenger directly competes with the market leader on the same dimensions such as mimicking product features, advertising message, price points, and distribution channels. It requires significant resources and may not always yield positive results, but can be effective in gaining market share.

Question 19

Jessie Shambra is an up-and-coming marketing manager for a large department store chain. Ms. Shambra has distinguished herself with bold strategies such as launching attacks on her primary competitor from several fronts (including advertising, new store openings, price cuts, new distributor alliances, and creative merchandising). Her "blitz" is comparable to any done by the military in time of war. Which of the following market challenger attack strategies is Ms. Shambra using to attack her competition?

Accepted Answer

Ms. Shambra is using an encirclement attack strategy, which involves launching a comprehensive effort that attacks the competitor from several fronts simultaneously, similar to a military encirclement maneuver.

Question 20

Sony is an unusual market leader. It gives its customers new products that they have never even asked for (e.g., Walkmans, VCRs, video cameras, CDs). This makes Sony a(n) ________ firm.

Accepted Answer

The description of Sony providing new products that customers have never asked for implies that Sony is a market-driving firm. This means that Sony is not simply responding to market demand, but rather is proactively shaping the market by introducing innovative new products.

Quiz 11: Competitive Dynamics