MNGT 4800 Final Exam (A+ Guaranteed)

Competitors (*Chapter 6*) correct answers Firms operating in the same market, offering similar products and targeting similar customers. Competitive Rivalry correct answers Ongoing set of competitive actions and competitive responses occurring between *two competitors* as they contend with each other for an advantageous market position (Coke vs. Pepsi). Competitive Dynamics correct answers Total set of actions and responses of all firms competing within a market. Significant commitment of resources, difficult to implement, difficult to reverse, and has long time horizon. Multimarket competition correct answers Firms competing against one another in several product or geographic markets. Overlapping between multiple competitors. First Mover Advantage correct answers -*Sun Tzu argued that those who occupied a battlefield first were at ease compared to those that arrive later. * -First Mover Successes -First Mover Failures **Footholds** correct answers -*A small position that a firm intentionally establishes within a market in which it does not yet compete.* -Company with small market -Share within a market -Introduce firm to new region-"get your feet wet" (as an experiment) -to diversify product line/risk (as a real option) -to defer competition (as a competitive threat) -to launch activities (as a base) -Establishing a small position and then expanding from it is a classic war tactic that was used in the Normandy invasion in World War II. Ex: IKEA takes a foothold by opening a single store to highlight their products when entering a new market. Disruptive Innovations correct answers -An improvement that conflicts with, and threatens to replace, traditional approaches to competing with an industry. -*Sun Tzu noted that disrupting an enemy's alliances is an effective alternative to war. In business, disruptive innovations occur when offerings emerge that are so superior that they threaten to replace traditional approaches.* -*Tablet computers* have the potential to disrupt laptop sales due to their versatility and portability. Reading books can be awkward on traditional computers, but user-friendly devices such as iPad, Nook, and Kindle are popular platforms for aggressive textbook publishers. -Many stores that relied on *compact disc sales* went under when downloadable digital media disrupted the music industry. Years earlier, CDs supplanted vinyl albums and cassette tapes due to their superior durability and quality. Will the cycle continue with a new technology replacing downloads?