MGT409EXAM2ReviewSheet

MGT409EXAM2ReviewSheet - Exam II Review Sheet MGT 409...

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Exam II Review Sheet MGT 409 Chapters 5 – 8 60 Questions, 6 T/F, 54 M/C – 100 points Define competitive rivalry. Ongoing set of competitive actions and competitive responses that occur among firms as hey maneuver for an advantageous market position Influences an individual firm’s ability to gain and sustain comp. adv. 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 What is multimarket competition? Competition that firms competing against each other in several product or geographic markets are engaged in If rivalry is intense, what performance implications does that have on an industry? Competitive behavior is the set of competitive actions and competitive responses the firm takes to build or defend its competitive advantages and to improve its market position Through competitive behavior, the firm tries to successfully position itself relative to the Five Forces of Competition, and to defend current competitive advantages while building advantages for the future Understand the competitive dynamics of market commonality / geographic and product – high / low and the response profiles. In addition to this, understand resource similarity as it relates to response / attack profiles. Competitive dynamics - refers to all competitive behaviors, that is, the total set of actions and responses taken by all firms competing within a market Market commonality - is concerned with a number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each When firms produce similar products and compete for the same customers, the competitive rivalry is likely to be high Market segment ex. commercial, consumer Product segment ex. health insurance, life insurance Geographic segments Western Europe, Southeast Asia 1
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The firm and its competitor displayed in quadrant I have similar types and amounts of resources; would use their similar resource portfolios to compete against each other in many markets that are important to each The firm and its competitor shown in quadrant III share few markets and have little similarity in their resources, indicating that they aren’t direct and mutually acknowledged competitors Thus, a small local, family-owned Italian restaurant does not complete directly against Olive Garden nor does it have recourse that are similar to those of Darden Restaurants (Olive Garden’s owner) High/Low and the Response Profile Resource similarity - the extent to which the firm’s tangible and intangible resources are comparable to a competitor's in terms of both types and amount Firms with similar types and amounts of resources are likely to have similar strengths and weaknesses and use similar strategies 2
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MGT409EXAM2ReviewSheet - Exam II Review Sheet MGT 409...

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