1⟩ When discussing the 8Cs framework for mergers and acquisitions, which of the following is not a component of the criteria-
1. Competitors
2. Challengers
3. Collaborators
4. Customers
5. Commodities
Answer: Collaborators
Competitive Strategy
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“Competitive Strategy Marketing Interview Questions And Answers will Guide you that five forces analysis is a framework for the industry analysis and business strategy development. It uses concepts developed in Industrial Organization (IO) economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market. Learn more about Competitive Marketing Strategy or get preparation of Competitive Marketing Strategy Job Interview with this Guide.”
34 Competitive Strategy Questions And Answers
2⟩ Competitive advantage is gained through the offering customers greater value. How can this be achieved?
1. Offering lower prices
2. Improving the quality of the product or service
3. Offering innovative qualities to the product
4. Providing more benefits that will justify higher prices
5. All of the above
Answer: All of the above
3⟩ The first approach of any competitor analysis is to establish is what?
1. Who are the competitors?
2. Evaluate and qualify the threat posed by each of the competitors.
3. How many competitors there are?
4. All of the above
5. None of the above
Answer: Who are the competitors?
4⟩ Most companies will compete with those competitors that resemble them the most, for example, Peugeot/Citroen competes against Renault rather than against Ferrari. There are several strategic benefits to the existence of competitors. What are these benefits?
1. May assist in the legitimization of new technology
2. May share cost of market and product development
3. May help increase total demand from the market
4. May lead to the development of more product differentiation
5. All of the above
Answer: All of the above
5⟩ When adopting a market perspective, the competition is defined as task competition whereby companies are trying to satisfy customer or customer group, needs and wants. Which of the following illustrate a company adopting a market perspective identification of competitors?
1. Heineken views Coors as its competition.
2. Heineken views the entire social drinking market to identify its competitors.
3. Heineken views Carlsberg as its competition.
4. Heineken views Smirnoff Ice as its competition.
Answer: Heineken views the entire social drinking market to identify its competitors.
6⟩ A runner-up firm in an industry that is fighting hard to increase market share, is referred to as?
1. Market leader
2. Market follower
3. Market nicher
4. Market challenger
Answer: Market challenger
7⟩ Which of the following are mechanisms to expanding the total market?
1. New uses for existing products
2. More over all general usage of product
3. New users for existing products
4. All of the above
5. None of the above
Answer: All of the above
8⟩ The Boston consulting Group estimates that ______ of recent US acquisitions have destroyed value for the acquirers shareholders.
1. 75%
2. 56%
3. 64%
4. 43%
5. 20%
6. 80%
Answer: 64%
9⟩ What is competitor myopia?
1. Company is focused only on the one major competitor.
2. Company is too focused on the major competitors.
3. Immediate competition blinds a company to latent competitors who can destroy the old ways of doing business.
4. All of the above
5. None of the above
Answer: Immediate competition blinds a company to latent competitors who can destroy the old ways of doing business.
10⟩ Which of the following competitive positioning strategies is a losing strategy?
1. Middle-of-the-roader
2. Dissemination
3. Overall cost leadership
4. Differentiation
Answer: Middle-of-the-roader
11⟩ Marketers would use which pricing strategy to overcome a competitor that they felt did not have sufficient resources to sustain a price war.
1. Market skimming
2. Market penetration
3. Discounts and allowances
4. Product line pricing
5. Optional-product pricing
6. By-product pricing
Answer: Market penetration
12⟩ Retail and wholesale markets take a far more rational approach to price interpretation than do consumer groups. Intermediaries must look in which two directions when deciding what price they can charge- ► 1) The banks ► 2) The manufacturers ► 3) The environment ► 4) The consumers ► 5) The authorities
1. 2, 3
2. 4, 5
3. 1, 2
4. 2, 4
5. 3, 4
Answer: 2, 4
13⟩ Price sensitivity can be a meaningful way of doing which of the following between groups of customers.
1. Diffusing
2. Differentiating
3. Dividing
4. Distributing
5. Diverging
Answer: Differentiating
14⟩ Market challengers use a range of offensive strategies to attack the market leaders and other competitors. Which of the following is a market challenger strategy that uses a diversification approach, often into new technological and geographical areas and unrelated areas to overcome the opposition?
1. Flanking attack
2. Encirclement attack
3. Guerilla attack
4. Bypass attack
5. Frontal attack
Answer: Bypass attack
15⟩ For some products, competitive pressure may keep margins tight. To increase profit the organization may do which of the following-
1. Reduce marketing expenditure; reduce costs.
2. Reduce marketing expenditure; increase the price.
3. Reduce marketing expenditure; increase the price.
4. Reduce costs; increase output.
5. Increase the price; reduce costs.
Answer: Reduce costs; increase output
16⟩ Defense strategies are utilized by market leaders against their attackers. When competitors attack the market leaders weaknesses, such as Japanese care manufacturers entering the USA market with smaller and cheaper cars, this is referred to as what type of defense strategy?
1. Flanking defence
2. Contraction defence
3. Position defence
4. Pre-emptive defence
5. Counter-offensive defence
6. Mobile defence
Answer: Flanking defence
17⟩ A runner up in an industry that is fighting hard to increase its market share is referred to as.
1. Market challenger
2. Market leader
3. Market follower
4. Market nicher
5. None of the above
Answer: Market challenger
18⟩ A group of firms following the same or similar strategy is referred to as what-
1. A collusive group
2. A strategic group
3. A competitive group
4. An associative group
Answer: A strategic group
19⟩ Improving productivity means squeezing more profits out of the same volume of sales. Which of the following are not specifically productivity enhancing tactics?
1. Win customer loyalty by implementing customer-relationship management programs.
2. Reduce fixed costs, especially wages, through outsourcing.
3. Reduce variable costs through lean production mechanisms of Total Quality Management (TQM).
4. Reduce capital cost by implementing JIT and improving stock-holding and work in progress inventory levels.
Answer: Win customer loyalty by implementing customer-relationship management programs
20⟩ Based upon rationality and mutual respect competitors can often exist harmoniously, however various predatory or retaliatory acts can disrupt this harmony. Which of the following are market disruptive strategies?
1. The use of product dumping tactics
2. The seeking of subsidies
3. Investment in over-capacity
4. Buying market share rather than earning it
5. All of the above
Answer: All of the above
