The Management of Strategy Concepts International Edition 10th Edition – Test Bank

The Management of Strategy Concepts International Edition 10th Edition by R. Duane Ireland – Test Bank

Chapter 5—Competitive Rivalry and Dynamics

TRUE/FALSE

1.Canon’s desktop copiers couldn’t collate, enlarge, or do grayscale replication and as such failed as a disruptive innovation (Chapter 5 Opening Case).

ANS: F PTS: 1 DIF: Medium OBJ: Application

NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing strategy & innovation | Bloom: Application

2.Canon’s desktop copier was a disruptive innovation for the then larger photocopier industry dominated by Xerox (Chapter 5 Opening Case).

ANS: T PTS: 1 DIF: Medium OBJ: Application

NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing strategy & innovation | Bloom: Application

3.Because of the demanding technology development required, disruptive innovations such as the iPhone are usually confined to a single industry where it can focus on competing against a few rivals (Chapter 5 Opening Case).

ANS: F PTS: 1 DIF: Medium OBJ: Application

NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing strategy & innovation | Bloom: Application

4.Firms operating in the same market, offering similar products and targeting similar customers are competitors.

ANS: T PTS: 1 DIF: Easy OBJ: Knowledge

NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing strategy & innovation | Bloom: Knowledge

5.Competitive rivalry is the contest to be the first mover in an international market.

ANS: F PTS: 1 DIF: Easy OBJ: Knowledge

NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Strategic & systems skills | Bloom: Knowledge

6.Competitive rivalry is the set of competitive actions and responses that occur among firms as they maneuver for an advantageous market position.

ANS: T PTS: 1 DIF: Easy OBJ: Knowledge

NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Strategic & systems skills | Bloom: Knowledge

7.“Competitive dynamics” indicates that firms and their strategic actions are independent.

ANS: F PTS: 1 DIF: Medium OBJ: Comprehension

NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Strategic & systems skills | Bloom: Comprehension

8.Competitive dynamics refers to the total set of actions and responses taken by all firms competing within a market.

ANS: T PTS: 1 DIF: Easy OBJ: Knowledge

NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Strategic & systems skills | Bloom: Knowledge

9.A strategy’s success is determined not only by the firm’s initial competitive actions but also by how well it anticipates competitors’ responses to them and by how well the firm anticipates and responds to its competitors initial actions.

ANS: T PTS: 1 DIF: Medium OBJ: Comprehension

NOT:AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing the task environment | Bloom: Comprehension

10.Intensified rivalry within an industry results in decreased average profitability for the firms within it.

ANS: T PTS: 1 DIF: Medium OBJ: Comprehension

NOT:AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing the task environment | Bloom: Comprehension

11.Firms with high market commonality and highly similar resources are direct and mutually acknowledged competitors.

ANS: T PTS: 1 DIF: Medium OBJ: Knowledge

NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing the task environment | Bloom: Knowledge