Market concentration/competitive intensity correct answers extent or degree to which a relatively small number of firms account for a relatively large percentage of the market
An industry in which market share is "concentrated" in the hands of a few firm is likely to be correct answers less comp...
MGMT 449 Exam Review CSUF Heejin Woo || Questions
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Market concentration/competitive intensity correct answers extent or degree to which a relatively
small number of firms account for a relatively large percentage of the market
An industry in which market share is "concentrated" in the hands of a few firm is likely to be
correct answers less competitive than one in which market share is dispersed among many small
firms
HHI correct answers is often used to measure market concentrations
HHI = 1 correct answers Firm is a monoply
Blue ocean is also known as correct answers reconstructionist view
Blue ocean strategy definition correct answers is about doing business where there is no
competitor
o Market boundaries and industries can be reconstructed by correct answers the actions and
beliefs of industry players
Ways to establish blue ocean strategy correct answers Created uncontested market space
Make the competition irrelevant
Create and capture new demand
Break the value/cost trade-off
Align the whole system of a company's activities in pursuit of differentiation and low cost
First-move advantage definition correct answers the ability of pioneering firms to earn positive
economic profits
Primary sources of first-mover advantage correct answers Technological leadership
• Learning curve: costs fall with cumulative output
• R&D and patents: technology = f (R&D expenditure)
Primary sources of first-mover advantage correct answers Preemption of assets
• Preemption of input factors (employees, suppliers, distributors)
• Preemption of locations in geographic and product characteristics space
• Preemptive investment in plant and equipment
Primary sources of first-mover advantage correct answers Buyer switching costs
Primary sources of first-mover advantage correct answers Reputation and brand awareness by
consumers
, Resource-based view definition correct answers This perspective views a company as a
collection of resources
Chacracteristics of resources in a resource-based view correct answers Resources are the
productive assets owned by the firm; capabilities are what the firm can do
Individual resources do not confer competitive advantage alone; they must work together to
create organizational capabilities
Resources are distributed heterogeneously across companies
These productive resources cannot be transferred from company to company without cost
(resources are sticky)
Competitor analysis definition correct answers Is the process by which a firm investigates its
current/potential rivals for the purpose of predict the likely nature and significance of
competitive actions and using these predictions to shape current decision-making (mostly to
formulate strategy)
Razor-blade strategy is also known as correct answers freebie marketing
Razor-blade strategy definition correct answers One item is sold at a low price (or free) in order
to increase sales of a complimentary good
How to challenge razor-blade strategy correct answers Other companies offer supplies that work
for your razor
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