CMA CMA Competitive Intelligence & Analysis 2

Question 1

What is 'benchmarking' in a competitive intelligence context?

Accepted Answer

Comparing a company's performance metrics against industry leaders or competitors

Answer

Benchmarking involves systematically measuring a company's processes, products, or performance against best-in-class competitors to identify improvement opportunities.

Question 2

Which analytical approach segments competitors into 'strategic groups' based on similar strategies and resources?

Accepted Answer

Strategic Group Analysis

Answer

Strategic Group Analysis clusters competitors that follow similar strategies within an industry, helping analysts identify the most direct competitive threats.

Question 3

A market analyst tracking a competitor's 'share of voice' is measuring:

Accepted Answer

The competitor's advertising spend as a percentage of total category advertising

Answer

Share of voice (SOV) measures how much of total category advertising or media presence belongs to a specific brand, often used as a proxy for brand strength.

Question 4

The 'competitive response matrix' helps analysts predict how competitors will react to strategic moves by assessing their:

Accepted Answer

Awareness, motivation, and capability to respond

Answer

A competitive response matrix evaluates whether a competitor is aware of the strategic move, is motivated to respond, and has the capability to react effectively.

Question 5

What does the term 'competitive moat' refer to in market analysis?

Accepted Answer

A sustainable competitive advantage that protects a company from rivals

Answer

A competitive moat, popularized by Warren Buffett, is a durable competitive advantage—such as brand, network effects, or cost advantages—that protects a company's market position.

(CMA) Certified Market Analyst Practice Test

(CMA) Certified Market Analyst Practice Test

CMA CMA Competitive Intelligence & Analysis 2