CS CS Competitive Intelligence & Positioning 3

Question 1

A 'stuck in the middle' position in Porter's framework describes a firm that:

Accepted Answer

Fails to achieve a clear strategic position and underperforms peers

Answer

Porter argued that firms failing to commit to either cost leadership or differentiation typically earn below-average returns because they offer no clear advantage.

Question 2

Which analytical tool helps strategists identify a firm's most critical strengths to defend against competitive threats?

Accepted Answer

SWOT analysis

Answer

SWOT analysis maps internal strengths and weaknesses against external opportunities and threats, guiding strategy to leverage strengths against competitive pressures.

Question 3

Predatory pricing as a competitive tactic is legally problematic in the US primarily because:

Accepted Answer

It may violate antitrust laws by intentionally driving out competitors

Answer

US antitrust law prohibits pricing below cost with the intent to eliminate competition and later raise prices to recoup losses, harming consumers.

Question 4

The Resource-Based View (RBV) of competitive advantage focuses on:

Accepted Answer

Internal resources and capabilities as the primary source of sustainable advantage

Answer

RBV holds that unique, hard-to-imitate internal resources and capabilities — not just market positioning — are the foundation of sustained competitive advantage.

Question 5

A competitive moat in strategic analysis refers to:

Accepted Answer

Durable advantages that protect a firm's market position and profitability

Answer

A competitive moat encompasses all structural advantages — brand, switching costs, network effects, cost advantages — that protect a firm from competitive erosion.

(CS) Certified Strategist Practice Test

(CS) Certified Strategist Practice Test

CS CS Competitive Intelligence & Positioning 3