Chapter 3 – Competitor Analysis
3.1
One way to identify competitors is to group competitors according to the degree they compete for a buyer’s
choice.
3.2
A strategic group is a customer segment that is strategically important to the business.
3.3
One of the benefits of competitor analysis is that an understanding of the current strategy and the strengths
and weaknesses of a competitor can suggest opportunities and threats that will merit a response.
3.4
According to the book, mobility barriers are barriers inhibiting the movement of a person from one social
class to another.
3.5
The competitive strength grid lists the product-markets served by each competitor and identifies for each
product market the strengths of each competitor.
3.6
The value chain analysis is based upon the cost-benefit of the product as perceived by the customer.
3.7
The eight dimensions of competitor analysis include: current and past strategies; cost structure; exit
barriers; objectives and commitment; size, growth and profitability; ______ and ______, ________, and
________; and _____ and _________.
3.8
In conducting a competitor analysis, which of the following is not relevant:
a. Accounting methodologies
b. Market share
c. Image
d. Positioning strategy
e. Objectives and commitments
3.9
Exit barriers are crucial to a firm’s ability to exercise an exit alternative. Which of the following is not an exit
barrier?
a. Managerial pride
b. Government or social barriers
c. Specialized assets
d. High market growth rate
e. Fixed costs
3.10
In completing a checklist on competitor assets and competencies, some of the areas to be considered
include all but one of the following:
a. Company culture
b. Innovation
c. Manufacturing
d. Management
e. Strategic programming
3.11
In addition to current competitors, it is important to consider potential market entrants such as firms that
might engage in all but one of the following:
a. Retaliatory or defensive strategies
b. Market expansion
c. Forward integration
d. Low-cost strategies
e. Backward integration
3.12
The competitor analysis in almost all cases will benefit from considering both direct and indirect
competitors.
3.13
Potential market entrants might use all but one of the following to enter a market:
a. Market expansion
b. Market penetration
c. Product expansion
d. Backward/forward integration
e. Export assets or competencies
3.14
Nintendo did not try to compete with Sony’s in terms of high tech digital graphics.
3.15
Some of the benefits of strategic groups include all but one of the following:
a. Makes the process of competitor analysis more manageable.
b. Refines the strategic investment decision.
c. Includes a set of mobility barriers.
d. They will be affected by and react to industry developments in similar ways.
e. They produce strategic options.