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

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

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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.

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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.

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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

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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

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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

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