Ch 11 dealing with competition questions.hao

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Ch 11 dealing with competition questions.hao

  1. 1. TOP 10 Learning Concepts for<br />Chapter 11:<br />Dealing with Competition<br />Lady CharmayneHao<br />April 2011<br />
  2. 2. 1. Which of the following is true?<br />In threat of segment rivalry, a segment is unattractive if it does not contain numerous, strong, or aggressive competitors.<br />In threat of new entrants, a segment is attractive if entry barriers are low and exit are high.<br />In threat of segment rivalry, a segment is unattractive if there are actual potential substitutes for the product.<br />In threat of new entrants, a segment is attractive if entry barriers are high and exit are low.<br />In threat of segment rivalry, a segment is attractive if it places a limit on prices and profit. <br />2<br />
  3. 3. What determines market segment?<br />3<br />Michael Porter’s Five Forces <br />
  4. 4. “Threat of new entrants” refers to the threat existing competitors face upon new competitors<br />4<br />Barriers to entry:<br />Economies of scale<br />Product Differentiation<br />Capital Requirements<br />Switching Cost<br />Distribution Channel Access<br />Government Policies<br />Attractive if entry barriers are high and exit are low!<br />
  5. 5. 1. Which of the following is true?<br />In threat of segment rivalry, a segment is unattractive if it does not contain numerous, strong, or aggressive competitors.<br />In threat of new entrants, a segment is attractive if entry barriers are low and exit are high.<br />In threat of segment rivalry, a segment is unattractive if there are actual potential substitutes for the product.<br />In threat of new entrants, a segment is attractive if entry barriers are high and exit are low.<br />In threat of segment rivalry, a segment is attractive if it places a limit on prices and profit. <br />5<br />
  6. 6. 2. The percentage of customers whose company’s product they prefer to buy pertains to _____.<br />Share of mind<br />Share of heart<br />Share of market<br />Both a and c<br />Both b and c<br />6<br />
  7. 7. What to consider on competitor analysis?<br />7<br />Share of market<br />Variables<br />Share of mind<br />Share of heart<br />
  8. 8. “Share of heart” refers to the percentage of customers whose company’s product they want to buy<br />8<br />“Name the company from which you would prefer to buy!”<br />
  9. 9. 2. The percentage of customers whose company’s product they prefer to buy pertains to _____.<br />Share of mind<br />Share of heart<br />Share of market<br />Both a and c<br />Both b and c<br />9<br />
  10. 10. 3. Forever 21 is an example of<br />Market Leader<br />Market Follower<br />Market Challenger<br />Market Niche<br />Market Rival<br />10<br />
  11. 11. What are the other competitive strategies?<br />11<br />Market<br />Challenger<br />Market <br />Followers<br />Market <br />Nichers<br />Market <br />Leader<br />
  12. 12. “Market follower” is a willing to maintain its market share and not rock the boat.<br />12<br />Market<br />Challenger<br />“Product imitation”<br />Market <br />Followers<br />Market <br />Nichers<br />Market <br />Leader<br />
  13. 13. 3. Forever 21 is an example of<br />Market Leader<br />Market Follower<br />Market Challenger<br />Market Niche<br />Market Rival<br />13<br />
  14. 14. 4. Switching cost is an example barrier to entry of <br />Supplier Power<br />Threat of new entrants<br />Buyer Power<br />All of the above <br />None of the above<br />14<br />
  15. 15. What determines market segment?<br />15<br />Michael Porter’s Five Forces <br />
  16. 16. “Supplier Power” refers to market of inputs<br />16<br />Factors affecting supply power:<br />Supplier Concentration<br />Availability of Substitute Inputs<br />Product Differentiation<br />Buyer Willingness<br />Switching Cost<br />Substitutes place a limit on prices and profit!<br />
  17. 17. “Threat of new entrants” refers to the threat existing competitors face upon new competitors<br />17<br />Barriers to entry:<br />Economies of scale<br />Product Differentiation<br />Capital Requirements<br />Switching Cost<br />Distribution Channel Access<br />Government Policies<br />Attractive if entry barriers are high and exit are low!<br />
  18. 18. “Buyer Power” refers to customer’s price sensitivity and negotiating power<br />18<br />Factors affecting buyer power:<br />Number of customer<br />Size<br />Differences<br />Price Sensitivity<br />Switching Cost<br />Brand Identity<br />Substitutes place a limit on prices and profit!<br />
  19. 19. 4. Switching cost is an example barrier to entry of <br />Supplier Power<br />Threat of new entrants<br />Buyer Power<br />All of the above <br />None of the above<br />19<br />
  20. 20. 5. Define _____ and opponents is one of the strategies of a market niche.<br />Strategic Innovation<br />Strategic Implementation<br />Strategic Objective<br />None of the above<br />All of the above<br />20<br />
  21. 21. How market challengers strategies<br />21<br />Define Strategic Objective and opponents<br />Choose general attack strategy<br />Choose specific attack strategy<br />Market Leader<br />
  22. 22. Most aim to increase market share!<br />22<br />Define Strategic Objective and opponents<br />Decide whom to attack!<br />Choose general attack strategy<br /><ul><li> Market Leader
  23. 23. Firm’s own size </li></ul> underfinanced <br /> and not doing <br /> the job<br /><ul><li> small and local </li></ul> firms<br />Choose specific attack strategy<br />
  24. 24. 5. Define _____ and opponents is one of the strategies of a market Challenger.<br />Strategic Innovation<br />Strategic Implementation<br />Strategic Objective<br />None of the above<br />All of the above<br />23<br />
  25. 25. 6. Leapfrogging to new technologies is an example of<br />Frontal Attack<br />Flank Attack<br />Encirclement Attack<br />Bypass Attack<br />Guerilla Attack<br />24<br />
  26. 26. What attack options are available?<br />25<br />A<br />T<br />T<br />A<br />C<br />K<br />Frontal<br />Bypass<br />Flank<br />Guerrilla<br />Encirclement<br />
  27. 27. Bypass attack offers 3 line approach<br />26<br />Diversify into<br /> unrelated products<br />New geographical markets<br />Leapfrogging to new technologies<br />A<br />T<br />T<br />A<br />C<br />K<br />Frontal<br />Bypass<br />Flank<br />Guerrilla<br />Encirclement<br />Bypass and attack easier markets!<br />
  28. 28. 6. Leapfrogging to new technologies is an example of<br />Frontal Attack<br />Flank Attack<br />Encirclement Attack<br />Bypass Attack<br />Guerilla Attack<br />27<br />
  29. 29. 7. The following are specific attack strategies for competition except<br />Product Launch<br />Lower priced goods<br />Product Discounts<br />Product Innovation<br />Value priced goods<br />28<br />
  30. 30. Determine specific attack strategies for effective competition.<br />29<br />Improved Service<br />Product Discounts<br />Product Innovation<br />Prestige Goods<br />Distribution Innovation<br />Lower Priced Goods<br />Manufacturing –Cost<br />Reduction<br />Product Proliferation<br />Intensive Advertising <br />Promotion<br />Value-priced Goods<br />
  31. 31. Determine specific attack strategies for effective competition.<br />30<br />Improved Service<br />Product Discounts<br />Product Innovation<br />Prestige Goods<br />Distribution Innovation<br />Lower Priced Goods<br />Manufacturing –Cost<br />Reduction<br />Product Proliferation<br />Intensive Advertising <br />Promotion<br />Value-priced Goods<br />
  32. 32. 7. The following are specific attack strategies for competition except<br />Product Launch<br />Lower priced goods<br />Product Discounts<br />Product Innovation<br />Value priced goods<br />31<br />
  33. 33. 8. Which of the following is true?<br />An imitator takes the leader’s product and adapts or improves them.<br />A cloner emulates the leader’s products, name, and packaging but is costs less than the leader’s product.<br />An adapter duplicates the leader’s product and packages and sells it to the black market.<br />A cloner copies some aspects of the leader’s products but maintains a few differentiation.<br />None of the above <br />32<br />
  34. 34. How do market followers strategize?<br />33<br />Counterfeiter<br />Cloner<br />Imitator<br />Adapter<br />
  35. 35. “COUNTERFEITER” duplicates a leader’s product<br />34<br />Where?<br />Why?<br />How?<br />Packages and sells product on the black market through disreputable dealers for financial gain!<br />
  36. 36. “CLONER” emulates the leader’s products with slight variations<br />35<br />What?<br />How?<br />Product, name, and packaging are almost identical but cost less than the leader’s product!<br />
  37. 37. “IMITATOR” copies few things but maintains differentiation<br />36<br />What?<br />How?<br />Packaging, advertising, pricing, or location differs from the leader!<br />
  38. 38. “ADAPTER” adapts or improves leader’s product<br />37<br />What?<br />How?<br />Why?<br />Products might be sold to different markets but often grows into a future challenger!<br />
  39. 39. 8. Which of the following is true?<br />An imitator takes the leader’s product and adapts or improves them.<br />A cloner emulates the leader’s products, name, and packaging but is costs less than the leader’s product.<br />An adapter duplicates the leader’s product and packages and sells it to the black market.<br />A cloner copies some aspects of the leader’s products but maintains a few differentiation.<br />None of the above <br />38<br />
  40. 40. 9. The following is not the meaning of vertical integration except for<br />Number of sellers<br />Degree of differentiation<br />Circumstances to determine when to enter and exit<br />Level of growth to global scale<br />Degree that companies integrate backward or forward<br />39<br />
  41. 41. How to identify primary competitors?<br />40<br />Number of <br />Sellers and <br />Differentiation<br />Degree<br />Entry,<br /> Mobility, and<br /> Exit Barriers<br />Industry<br />Degree <br />of <br />Globalization<br />Cost<br />Structure<br />Degree of <br />Vertical<br />Integration<br />
  42. 42. How to identify primary competitors?<br />41<br />Number of <br />Sellers and <br />Differentiation<br />Degree<br />Entry,<br /> Mobility, and<br /> Exit Barriers<br />How many <br />and <br />how different?<br />Circumstances <br />that determine when<br />To enter and exit<br />Industry<br />Degree <br />of <br />Globalization<br />Cost<br />Structure<br />Level<br />Of <br />growth to a global<br />scale<br />Expenses that a firm<br /> must account when<br /> manufacturing <br />a product or service<br />Degree of <br />Vertical<br />Integration<br />Level<br />Of <br />management control<br />style<br />
  43. 43. 9. The following is not the meaning of vertical integration except for<br />Number of sellers<br />Degree of differentiation<br />Circumstances to determine when to enter and exit<br />Level of growth to global scale<br />Degree that companies integrate backward or forward<br />42<br />
  44. 44. 10. A value added reseller customizes the computer hardware and software for specific customer segments and earns a price premium is an example of<br />Vertical-level specialist<br />End-user specialist<br />Customer-size specialist<br />Product-feature specialist<br />Specific-customer specialist<br />43<br />
  45. 45. Possible Niche roles for successful nichemanship<br />44<br /><ul><li>End-user specialist
  46. 46. Vertical-level specialist
  47. 47. Customer-size specialist
  48. 48. Specific-customer specialist
  49. 49. Geographic specialist
  50. 50. Product specialist
  51. 51. Product-feature specialist
  52. 52. Job-shop specialist
  53. 53. Quality-price specialist
  54. 54. Service specialist
  55. 55. Channel specialist</li></li></ul><li>Possible Niche roles for successful nichemanship<br />45<br />Customer-size specialist<br /><ul><li>End-user specialist</li></ul>Concentrate on selling to either small, medium-sized, or large customers<br />Specializes in serving one type of end-user<br />Geographic specialist<br />Vertical-level specialist<br />Sells only on certain locality, region, or area of the world<br />Specializes at some vertical level of production-distribution value chain<br />
  56. 56. Possible Niche roles for successful nichemanship<br />46<br />Product-line specialist<br />Specific-customer specialist<br />Carries or produces only one product line or product<br />Limits its selling to one or few customers<br />Job-shop specialist<br />Product-feature<br />Specializes in producing a certain type of product or product feature<br />Customizes its products for individual customers<br />
  57. 57. Possible Niche roles for successful nichemanship<br />47<br />Quality-price specialist<br />Channel specialist<br />Operates at the low- or high-quality, high-price end of the handheld calculator market<br />Specializes in serving only one channel of distribution<br />Service specialist<br />Offers one or more services not available from other firms<br />
  58. 58. 10. A value added reseller customizes the computer hardware and software for specific customer segments and earns a price premium is an example of<br />Vertical-level specialist<br />End-user specialist<br />Customer-size specialist<br />Product-feature specialist<br />Specific-customer specialist<br />48<br />
  59. 59. TOP 10 Learning Concepts for<br />Chapter 11:<br />Dealing with Competition<br />Lady CharmayneHao<br />April 2011<br />

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