CMA CMA Competitive Intelligence & Analysis 1 — Questions and Answers
Question 1: Porter's Five Forces framework assesses competitive intensity by analyzing which five forces?
- Rivalry, Threat of New Entrants, Buyer Power, Supplier Power, Threat of Substitutes (Correct answer)
- Price, Product, Place, Promotion, People
- Market Share, Growth Rate, Profitability, Size, Loyalty
- Cost, Quality, Speed, Flexibility, Reliability
Correct answer: Rivalry, Threat of New Entrants, Buyer Power, Supplier Power, Threat of Substitutes
Porter's Five Forces model evaluates industry attractiveness through competitive rivalry, threat of new entrants, bargaining power of buyers, bargaining power of suppliers, and threat of substitute products.
Question 2: What is the primary goal of competitive intelligence (CI) for a market analyst?
- To gather and analyze information about competitors to make better strategic decisions (Correct answer)
- To expose competitors' illegal activities to regulatory bodies
- To copy competitor products and reduce R&D costs
- To monitor competitor social media accounts for PR insights
Correct answer: To gather and analyze information about competitors to make better strategic decisions
Competitive intelligence involves systematically collecting and analyzing public and ethical information about competitors to improve strategic decision-making.
Question 3: A 'perceptual map' is used in competitive analysis to:
- Visualize how customers perceive competing brands along key attributes (Correct answer)
- Plot the geographic distribution of competitors
- Track competitors' pricing changes over time
- Map the organizational hierarchy of competing firms
Correct answer: Visualize how customers perceive competing brands along key attributes
A perceptual map plots brands or products on a two-dimensional grid based on consumer perceptions of key attributes, revealing competitive positioning gaps.
Question 4: Which metric measures the proportion of total category sales captured by a specific brand?
- Market share (Correct answer)
- Share of voice
- Customer lifetime value
- Net promoter score
Correct answer: Market share
Market share is calculated as a brand's sales divided by total category sales, expressed as a percentage, indicating competitive position.
Question 5: A company conducts a 'win/loss analysis.' What is the primary purpose of this analysis?
- To understand why prospects chose or rejected the company versus competitors (Correct answer)
- To evaluate the financial performance of product lines
- To assess employee satisfaction with sales processes
- To determine the best advertising channels to use
Correct answer: To understand why prospects chose or rejected the company versus competitors
Win/loss analysis involves interviewing prospects who chose your company (wins) or a competitor (losses) to understand the deciding factors in purchase decisions.
Question 6: In competitive analysis, a 'first-mover advantage' refers to:
- The benefit gained by being the first company to enter a new market or develop a new product (Correct answer)
- The advantage of observing competitors' mistakes before entering a market
- A legal protection given to the company that files a patent first
- The price premium a market leader can charge over new entrants
Correct answer: The benefit gained by being the first company to enter a new market or develop a new product
First-mover advantage gives early entrants benefits like brand recognition, customer loyalty, and resource control before competitors can establish themselves.
CMA CMA Competitive Intelligence & Analysis 1
Porter's Five Forces framework assesses competitive intensity by analyzing which five forces?