Bubble-Up, Inc., is a small manufacturer of educational toys for children under age 10. It has co-existed with three other competitors in the educational toy industry for over 20 years, each of them maintaining a stable market share. There is a wide-spread rumor that Mega-Toy, Inc., the market leader in the broad children's toy market, has decided to target educational toys. Which of these statements is most likely TRUE?
a. The owners of Bubble-Up are unconcerned about Mega-Toy's entry to the market because of the resource dissimilarity between the firms.
b. Bubble-Up's greater organizational slack will allow it to aggressively attack Mega-Toy.
c. Bubble-Up's smaller size may make it more flexible in introducing innovations than Mega-Toy.
d. Competitive rivalry will not increase for Bubble-Up because Mega-Toy is not dependent on the educational toy market.
Answer: Bubble-Up's smaller size may make it more flexible in introducing innovations than Mega-Toy.
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Strategic Management Chapter 5
- Consumer goods producers are innovating in terms of healthy products. This type of incremental innovation is typical of
- In order to compete effectively, standard-cycle firms need all of the following EXCEPT
- Competition between candy makers (e.g., Hershey, Mars, Cadbury, Nestle, and Godiva) where firms package design (including package downsizing) and ease of availability is characteristic of a(n)
- Goods or services in standard-cycle markets reflect
- The competitive actions and responses in _____ markets are designed to seek large market shares
- The flat-panel television market where prices have come down and competition has become more stable is best characterized as
- Companies in fast-cycle markets need to profit quickly from an innovative product for all of the following reasons EXCEPT
- A company in a _____ industry is LEAST likely to make heavy use of patents and copyrights.
- ____ markets are often described as volatile and innovative.
- An organization's loyalty to its own product is a competitive disadvantage in a(n) _____ market.
- Because Coca-Cola, Nestle, and PepsiCo all sell a product (bottled water) that is essentially the same and all three giant companies are engaged in battles for market share using incremental changes in their products and seeking loyalty to brand names, it is most likely that the bottled water market is a(n)
- Lawsuits over patent and copyright infringements are more common and intense in
- Traditionally, the music industry signed multi-year contracts with artists and sold copyright protected music through established distribution channels. A shift to the digital format and the rise of Internet technology has resulted in the sharing of music over peer-to-peer networks, a practice the industry called "piracy." In recent years, the music industry has seen a rapid decline in the number of CDs sold. At the same time, the ownership of the distribution rights of musical content under copyright laws remains clear. Attempts at innovation by individual record labels to offer music as direct downloads to consumer are quickly copied by other labels. Based on these factors, the best assessment is that the music industry has shifted from a _____ to a _____ cycle market.
- Which industry can be LEAST described as a slow-cycle market?
- Reverse engineering is characteristic of
- Sustained competitive advantage is most achievable in a _____ market.
- Walt Disney's focus on _____ is typical of a slow-cycle market.
- The CEO of the Wholesome Food retail grocery chain, which specializes in organic and natural produce and meat, has stated, "The key to success is to find your niche and focus on it, regardless of what anyone else does." The CEO
- The ability of Disney to maintain its competitive advantage through proprietary rights to its characters would be severely weakened if
- Which company below committed significant resources to enter the information services market and, given its success, was imitated by other competitors?
- Akamai Technologies is a dominant player in the content delivery network (CDN) market. Akamai is not very diversified (i.e., is dependent on the CDN market). If rival CDN providers such as Limelight Networks and Level 3 Communications lower their basic CDN service prices, what would be Akamai's likely response?
- Lobelia's Nursery and Garden Resource Center has long provided high-quality, typical types of seasonal bedding plants to customers in the Mobile, Alabama, metropolitan area. It has traditionally competed with the other plant nurseries within a 50-mile radius of Mobile. Recently, Lobelia has opened a branch in Fairfax, Virginia. Lobelia's research shows that most Fairfax nurseries have only one location. Lobelia can expect the local Fairfax nurseries to
- Which organization has the highest market dependence?
- Quality is
- Quality affects competitive rivalry because a competitor whose products suffer from poor quality likely will _____________ until: