Answer Key

Strategic thinking – Practice 1

Choose the correct answer:
  1. There is a  [cut-throat] competition amongst different TV channels to get an interesting story first and report it first to the viewers.
  2. A  [cartel] is where companies in the same industry collaborate by coordinating prices, sharing out markets, etc., which in many countries is illegal.
  3. 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]
  4. Business can sustain their performances over the long term by having some competitive  [edge] to keep them ahead.
  5. I receive a  [royalty] of 10% on all my books that the publisher sells.
  6. 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.
  7. Some monopolies are legal. For example, inventors are granted  [patents] that give them monopolistic privileges for a certain length of time.
  8. The rare situation in which all producers are too small to affect the market price is called [perfect competition]
  9. He was criticized for being too Eurocentric and failing to pay sufficient attention to the competitive  [threat]from South east Asia
  10. Freeserve was the first Internet service provider to drop upfront charges and, with this [first-mover advantage] , came to dominate the UK market.