Competitor Analysis - Anticipating Competitive Action questions with correct answers

What is the objective of strategy CORRECT ANSWER to generate superior returns in the long-term Where do firms operate? CORRECT ANSWER in dynamic environments that include other players all seeking to maximize their returns -no firm operates in a vacuum What does a wise strategist do? CORRECT ANSWER -understands the firm's interdependencies with other players, -anticipates their future actions and responses to the firm's actions and -makes choices in light of these predictions. What is competitor Analysis CORRECT ANSWER The process by which a firm investigates its rivals to predict their future actions and reactions and make choices in light of these predictions is referred to as Competitor Analysis. What is the goal of competitor analysis CORRECT ANSWER The ultimate goal of competitor analysis is favorable competitive outcomes for the firm, both in the short-term and the long-term. e.g. a successful entry into a foreign market. achieving a sustainable competitive advantage in the long-term