Tomiko is the manager of Davis Freight, a mid-sized trucking company. The owners have assigned Tomiko the task of applying strategic decision making to analyze the competitive environment. Tomiko does an analysis of the competitors currently in the market and how much market share each has. In addition, Tomiko looks at trends in the trucking industry and how Davis has addressed those trends. Tomiko assesses the possibility of new entrants to the market, factoring in barriers to entry in the trucking business. In addition, Tomiko studies substitutes and complements, as well as suppliers and customers. Is Tomiko covering all of her bases in assessing the competitive environment?
A. Tomiko should not consider the impact trends in the industry as part of her assessment.
B. Tomiko needs to include an assessment of the tactics other companies use to compete.
C. Tomiko should look at the impact of both cost disadvantages and distribution channels.
D. Tomiko failed to consider the impact of capital requirements and brand identification.
E. Tomiko has covered the bases necessary for her analysis and is ready to present it.
Answer: B. Tomiko needs to include an assessment of the tactics other companies use to compete.
Explanation: All managers are affected by the components of the macroenvironment. The competitive environment includes rivalries among current competitors and the impact of new entrants, substitute and complementary products, suppliers and customers. After identifying competitors, the next step is to analyze how they compete, but Tomiko neglected this step.
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