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Competitive Analysis & Market Intelligence Flashcards

7 cards from real CSM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Competitive Analysis & Market Intelligence flashcards as text

  1. The BCG Growth-Share Matrix classifies business units into four categories. A unit with HIGH market share but LOW growth is called a:

    Answer: Cash Cow

    Cash Cows have dominant market share in slow-growth markets, generating steady cash flow with minimal investment needed.

  2. A firm performs a SWOT analysis before entering a new market. Which of the following would be classified as an OPPORTUNITY?

    Answer: Emerging demand for eco-friendly products in the target market

    Opportunities are external, favorable conditions in the environment that a firm can exploit to its advantage.

  3. Industry concentration can be measured with the Herfindahl-Hirschman Index (HHI). A very HIGH HHI score indicates:

    Answer: A near-monopoly or highly concentrated market

    A high HHI score means a few firms control most of the market, indicating high concentration and less competitive rivalry.

  4. Benchmarking against the best-in-class company outside your industry is specifically called:

    Answer: Generic benchmarking

    Generic benchmarking compares processes against best practices from entirely different industries to find transferable innovations.

  5. A first-mover advantage is most sustainable when:

    Answer: The pioneer builds strong customer loyalty and proprietary technology before rivals enter

    First-mover advantages are durable when the pioneer locks in customers through loyalty programs, patents, or proprietary assets before competitors arrive.

  6. In competitive intelligence, which source is considered SECONDARY data?

    Answer: Published industry analyst reports

    Secondary data is information already collected and published by others, such as analyst reports, press releases, and industry databases.

  7. When a strategic manager evaluates the 'bargaining power of buyers' in Porter's model, HIGH buyer power is indicated by:

    Answer: Buyers purchasing in large volumes with low switching costs

    When buyers purchase in large volumes and can easily switch suppliers, they can demand lower prices or better terms, giving them high bargaining power.