CMA CMA Competitive Intelligence & Analysis 3

Question 1

Which concept describes the maximum revenue a company could generate if it captured 100% of its target market?

Accepted Answer

Total Addressable Market (TAM)

Answer

Total Addressable Market (TAM) represents the maximum revenue opportunity available if a company achieved 100% market share in its target market.

Question 2

A company's product is in a market with high rivalry, low switching costs, and many substitutes. What does Porter's framework suggest about this industry?

Accepted Answer

It is unattractive with low profit potential

Answer

High rivalry combined with low switching costs and many substitutes indicates strong competitive forces that erode profit margins, making the industry generally unattractive.

Question 3

In competitive intelligence, 'HUMINT' refers to intelligence gathered from:

Accepted Answer

Human sources, such as conversations with customers, suppliers, or industry contacts

Answer

HUMINT (human intelligence) in competitive intelligence refers to information gathered through direct human contact, including customer interviews, trade show conversations, and supplier feedback.

Question 4

What is the purpose of a 'competitive gap analysis'?

Accepted Answer

To identify areas where a company's capabilities fall short compared to competitors

Answer

Competitive gap analysis identifies the difference between a company's current capabilities or performance and those of top competitors, highlighting areas needing improvement.

Question 5

A market analyst notes that a competitor has recently hired 50 engineers specializing in AI. This is an example of which type of competitive signal?

Accepted Answer

Strategic intent signal

Answer

Hiring patterns reveal strategic intentions; a competitor hiring AI engineers signals investment in AI-driven products or capabilities, indicating future competitive moves.

(CMA) Certified Market Analyst Practice Test

(CMA) Certified Market Analyst Practice Test

CMA CMA Competitive Intelligence & Analysis 3