chapter 11 dealing with competition labrador
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TOP 10 Learning Questions for
Chapter 11: Dealing with Competition
Tanya Marie C. LabradorSeptember 24, 2010
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1. A company is more likely to be hurt by ____________.
A. Current competitorsB. New technologiesC. Emerging competitorsD. World-class businessesE. New technologies & emerging
competitors
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Types of emerging giants
Current competitors
New Technologies
Emerging competitors
World Class Business
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Current competitors
New Technologies
Emerging competitors
World Class Business
In recent years, a no. of new“emerging giants” have arisenfrom developing countries,and these nimble competitorsare not only competing withmultinationals on their hometurf but also becoming globalforces in their own right.
A company is more likely to be hurt by new technologies & emerging competitors.
The range of a company’s actual & potential competitors can be much broader than the obvious.
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1. A company is more likely to be hurt by ____________.
A. Current competitorsB. New technologiesC. Emerging competitorsD. World-class businessesE. New technologies & emerging
competitors
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2. Companies that satisfy the same customer needs are called ______________.
A. Competitive new entrantsB. ChallengerC. CompetitorsD. Market opponentE. Business rival
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Competition can be examined from 2 points of view:
INDUSTRY MARKETERS
group of firms that offer a product that are close substitutes for one another
classify industries according to number of sellers; degree of product differentiation; presence or absence of entry, mobility and exit barriers; cost structure; degree of vertical integration: and degree of globalization
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Using the Market Approach..
INDUSTRY MARKETERS
COMPETITORS are defined as companies that satisfy the same customer need (e.g a customer who buys a word-processing package really wants “writing ability” – a need that can also be satisfied by pencils, pens, or typewriters).
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2. Companies that satisfy the same customer needs are called ______________.
A. Competitive new entrantsB. ChallengerC. CompetitorsD. Market opponentE. Business rival
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3. Many factors shape a competitor’s objectives except
A. Profits B. BehaviorC. Current management & financial
situationD. Size and HistoryE. Growth
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Factors that shape a competitor’s objectives
Size
History
Current Management
Financial Situation
Growth
Profits
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Factors that shape a competitor’s objectives
Once a company has identified its maincompetitors and their strategies, it mustask the ff. questions:
What is each competitor seeking in the marketplace?
What drives each competitor’s behavior?
Knowing what drives a competitor’sbehavior is one step in determiningobjectives of competitor which does notnecessarily mean that BEHAVIOR is afactor that shapes a competitor’s
objectives
Size
History
Current Management
Financial Situation
Growth
Profits
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3. Many factors shape a competitor’s objectives except
A. Profits B. BehaviorC. Current management & financial
situationD. Size and HistoryE. Growth
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4. Steps to competitor analysis are the ff. except
A. Gather information about a competitor’s strengths & weaknesses
B. Identify a company’s main competitorsC. Determine objectives of competitorsD. Selecting competitor & customersE. None of the above
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Steps in Competitor Analysis
Gather information about a competitor’s strengths & weaknesses
Identify a company’s main competitors
Determine objectives of competitors
Selecting competitor & customers
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All choices are part of the competitor’s analysis
Gather competitor’s strengths & weaknesses
Identify a company’s main competitors
Determine objectives of competitors
Selecting competitor & customers
Once a company identifies its primary competitors, it must ascertain their strategies, objectives, strengths and weaknesses
Selecting Competitors & Customers come after analyzing strengths and weaknesses of competitors
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4. Steps to competitor analysis are the ff. except
A. Gather information about a competitor’s strengths & weaknesses
B. Identify a company’s main competitorsC. Determine objectives of competitorsD. Selecting competitor & customersE. None of the above
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5. Which of the following is true?
A. To improve market share, many companies benchmark their most successful competitors, as well as other world-class performers.
B. A business interest so small has the ability to control prices in a given industry.
C. Market nichers are not required to know their customers well.
D. Market challengers should lead the industry in developing new products to overtake the market leader.
E. A company must spend all its time focusing on competitors.
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Benchmarking
Any new business entering the same field will judge
their overall performance against the standards already
in place within the industry to gain more market share
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5. Which of the following is true?
A. To improve market share, many companies benchmark their most successful competitors, as well as other world-class performers.
B. A business interest so small has the ability to control prices in a given industry.
C. Market nichers are not required to know their customers well.
D. Market challengers should lead the industry in developing new products to overtake the market leader.
E. A company must spend all its time focusing on competitors.
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6. Which of the following is false?
A. Expanding the total market demand would suggest more usage from existing customers as one of its strategies.
B. Larger package sizes have shown to increase the amount of product that consumers use at one time resulting to a decrease in frequency of consumption.
C. The usage of impulse consumption products such as snacks increases when the product is made more available.
D. An opportunity arises when consumers’ perceptions of their usage differs from the reality.
E. Market followers should look for new customers or more usage from existing customers.
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Marketers can try the following to increase consumption
Packaging
Product Re-design
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Marketers can try to increase the amount, level, or frequency of consumption
Packaging
Product Re-design
Larger package sizes increase the amount of product that consumers use at one time increasing the frequency of consumption
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6. Which of the following is false?
A. Expanding the total market demand would suggest more usage from existing customers as one of its strategies.
B. Larger package sizes have shown to increase the amount of product that consumers use at one time resulting to a decrease in frequency of consumption.
C. The usage of impulse consumption products such as snacks increases when the product is made more available.
D. An opportunity arises when consumers’ perceptions of their usage differs from the reality.
E. Market followers should look for new customers or more usage from existing customers.
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7. Company V discovers a perfect solution to weight loss . Though target customers were not interested in weight loss, they enthusiastically respond to it when launched. The type of marketer company V is called ________.
A. Creative B. ReactiveC. ResponsiveD. AnticipativeE. Proactive
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Defending market share
Continuous innovation is done by market leaders to defend its terrain
It should keep increasing its competitive strength and value to customers by providing comprehensive solutions
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The ff. are distinction bet. marketers in satisfying customer needs
Responsive
Anticipative
Creative
finds a stated need and fills it
looks ahead into what needs customers may have in the near futurediscovers and produces solutions customers did not ask for but to which they enthusiastically respond
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7. Company V discovers a perfect solution to weight loss . Though target customers were not interested in weight loss, they enthusiastically respond to it when launched. The type of marketer company V is called ________.
A. Creative B. ReactiveC. ResponsiveD. AnticipativeE. Proactive
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8. Company X matches Company Y’s product, advertising, price & distribution
A. Flank attackB. Bypass attackC. Guerilla attackD. Frontal attackE. Encirclement attack
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Six Defense Strategies
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The aim of defensive strategy is to reduce the probability of attack, divert attacks to less-threatening areas, and lessen their intensity
company matches its opponent’s product, advertising, price & distribution
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8. Company X matches Company Y’s product, advertising, price & distribution
A. Flank attackB. Bypass attackC. Guerilla attackD. Frontal attackE. Encirclement attack
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A. Market followerB. Market leaderC. Market nichersD. Market playerE. Market challenger
9. Firm B attacks Firm A for further market share. What is Firm B called?
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Types of “MARKET” that exists in business
Market Leader
Market Challenger
Market Follower
Market Nicher
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Market Leader
Market Challenger
Market Follower
Market Nicher
Market challengers canattack the leader and
othercompetitors in an
aggressivebid for further market
share
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A. Market followerB. Market leaderC. Market nichersD. Market playerE. Market challenger
9. Firm B attacks Firm A for further market share. What is Firm B called?
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10. Chewing gum manufacturers are producing nutraceutical products to strengthen or whiten teeth and launch gums with health and cosmetic benefits.
A. Product innovationB. Product developmentC. Product specializationD. Product re-engineeringE. Product redesigning
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Marketers can try the following to increase consumption
Packaging
Product Re-design
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Marketers can try the following to increase consumption
Packaging
Product Re-design
Product development is creation of products with new or different characteristics that offer new or additional benefits to the customer.
It may involve modification of an existing product or itspresentation.
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10. Chewing gum manufacturers are producing nutraceutical products to strengthen or whiten teeth and launch gums with health and cosmetic benefits.
A. Product innovationB. Product developmentC. Product specializationD. Product re-engineeringE. Product redesigning
TOP 10 Learning Questions for
Chapter 11: Dealing with Competition
Tanya Marie C. LabradorSeptember 24, 2010
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