Having Good Competitive Intelligence About Rivals' Strategies and Moves to Improve

question 59

Multiple Choice

Having good competitive intelligence about rivals' strategies and moves to improve their situation is important because

• A) it identifies who the industry's current market share leaders are.
• B) it helps a company to anticipate what moves rivals are likely to make next and to craft its own strategic moves with some confidence about what market maneuvers to expect from its rivals.
• C) good scouting reports help identify which rival is in which strategic group.
• D) it enables company managers to determine which rival has the worst strategy and how to avoid making the same strategy mistakes.
• E) it enables more accurate predictions about how long it will take a particular rival to copy most of what the strategy leader is doing.

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Definitions:

Marginal Benefit

The extra value or contentment obtained when one more unit of a good or service is consumed or produced.

Positive Externality

A benefit that is enjoyed by a third-party as a result of an economic transaction.

Spillover Benefit

An advantage that results from an activity or product but benefits those who are not directly involved in its production or consumption.

Pollution Abatement

The reduction or elimination of pollution to protect the environment, typically involving strategies and technologies to control emissions and contaminants.