Answer Key
Strategic thinking – Practice 1
Choose the correct answer:
- There is a [cut-throat] competition amongst different TV channels to get an interesting story first and report it first to the viewers.
- A [cartel] is where companies in the same industry collaborate by coordinating prices, sharing out markets, etc., which in many countries is illegal.
- CW and DE decided to start by opening just one coffee shop in Shanghai in order to test the market and to [to establish a foothold in it]
- Business can sustain their performances over the long term by having some competitive [edge] to keep them ahead.
- I receive a [royalty] of 10% on all my books that the publisher sells.
- Freeserve started a(n) [price war] by offering unlimited access to the Internet for $19 a month - about $3 cheaper than America Online, its nearest rival.
- Some monopolies are legal. For example, inventors are granted [patents] that give them monopolistic privileges for a certain length of time.
- The rare situation in which all producers are too small to affect the market price is called [perfect competition]
- He was criticized for being too Eurocentric and failing to pay sufficient attention to the competitive [threat]from South east Asia
- Freeserve was the first Internet service provider to drop upfront charges and, with this [first-mover advantage] , came to dominate the UK market.