SEVI 3013 Exam 2- Uark Latest Update 100% Pass

SEVI 3013 Exam 2- Uark Latest Update 100% Pass Strategic Action a market-based move that involves a significant commitment of organizational resources and is difficult to implement and reverse Tactical action a market-based move that is taken to fine-tune a strategy; it involves fewer resources and is relatively easy to implement and reverse Competitive Action a strategic or tactical action the firm takes to build or defend its competitive advantages or improve its market position Competitive Response a strategic or tactical action the firm takes to counter the effects of a competitor's competitive action Competitors firms operating in the same market, offering similar products, and targeting similar customers Competitive rivalry the ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantageous market position The outcomes of competitive rivalry influence the firms: § Ability to develop and then sustain its competitive advantages § Level (average, below average, or above average) of financial return. Competitive Behavior the set of competitive actions and competitive responses the firm takes to build or defend its competitive advantages and to improve its market position Multimarket Competition occurs when firms compete against each other in several product or geographic markets Competitive dynamics The total set of actions and responses taken by all firms competing within a market. competitor analysis how companies gather and interpret information about their competitors- to understand Competitor analysis studies: Future objectives, current strategies, assumptions, capabilities To complete a competitor analysis, firms study: market commonality and resource similarity market commonality and resource similarity shape the firms: Awareness, motivation, ability Awareness refers to the extent to which competitors recognize the degree of their mutual interdependence Motivation concerns the firms incentive to take action or to respond to a competitors attack Ability refers to the quality of resources available to the firm to attack and respond Resource Dissimilarity the more significant the difference between resources owned by the acting firm and those against whom it has taken action, the longer is the delay by the firm with a resource disadvantage -influences competitive actions and responses firms choose to take Cost the amount of money a firm pays to deliver products or services to the customer Price what the customer pays to obtain the product or service Competitive Dynamics differ in: slow, fast, and standard cycle markets First mover a firm that takes an initial competitive action in order to build or defend its competitive advantages or to improve its market position First-mover benefits are often critical to a firm's success in industries: -experiencing rapid technological developments -with relatively short product life cycles In addition to earning above-average returns until its competitors respond to its successful competitive action, the first mover can gain: -the loyalty of customers -market share First movers tend to: •Be aggressive •Be willing to experiment with innovation •Take higher yet reasonable levels of risk To be a first mover, the firm must have readily available resources to: -Invest significantly in R&D -rapidly and successfully produce and market a stream of innovative products Organizational slack the buffer or cushion provided by actual or obtainable resources that aren't currently in use and are in excess of the minimum resources needed to produce a given level of organizational output -makes it possible for firms to have the ability to be first movers Second Mover a firm that responds to the first mover's