A) focusing relentlessly on building a competitive advantage.
B) applying resources where rivals are least able to defend themselves.
C) using a strategic offensive to allow the company to leverage its weaknesses to strengthen operating vulnerabilities.
D) employing the elements of surprise as opposed to doing what rivals expect and are prepared for.
E) displaying a strong bias for swift, decisive, and overwhelming actions to overpower rivals.
G) B) and E)
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A) are highly selective, focusing on particular value chain activities and on obtaining a particular competitive benefit.
B) are those whose purpose is to create an industry key success factor.
C) are those which help a company move quickly from one strategic group to another.
D) involve joining forces in R&D to develop new technologies cheaper than a company could develop the technology on its own.
E) aim at raising an industry's barriers to entry.
G) None of the above
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A) Remain steadfast to current product features and models to ensure resources are not diverted toward unproductive efforts.
B) Exclude volume discounts or better financing terms from the strategic response in order to maintain current profitability levels.
C) Gain product line exclusivity to force competitors to use other distributors.
D) Trim the length of warranties to save money.
E) Stay away from competitor's clients since their loyalty will not allow them to switch.
G) A) and D)
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Strategic alliances suffer from some dra...View Answer
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A) combat the bargaining power of foreign suppliers and help defend against the competitive threat of substitute products produced by foreign rivals.
B) help raise needed financial capital from foreign banks and use the brand names of their partners to make sales to foreign buyers.
C) get into critical country markets quickly, gain inside knowledge about unfamiliar markets and cultures, and access valuable skills and competencies that are concentrated in particular geographic locations.
D) help wage price wars against foreign competitors.
E) exercise better control over efforts to revamp the global industry value chain.
G) None of the above
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A) expand into foreign markets and/or control more of the industry value chain.
B) broaden the firm's product line and/or avoid the need for outsourcing.
C) gain a first-mover advantage over rivals in revamping the industry value chain.
D) add materially to a company's technological capabilities, strengthen the company's competitive position, and/or boost its profitability.
E) achieve product differentiation and/or lengthen the company's value chain to include more activities performed in-house and thereby gain a greater ability to reduce internal operating costs.
G) A) and B)
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A) Anticipated gains may fail to materialize due to an overly optimistic view of the synergies.
B) Anticipated gains may fail to materialize due to a poor fit in terms of the combination of resources and capabilities.
C) A partner can gain access to a company's proprietary knowledge base, technologies, or trade secrets.
D) The partners may disagree over how to divide the profits gained from joint collaboration.
E) There is a risk of becoming dependent on other companies.
G) A) and B)
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A) Gilt Groupe in the luxury flash sale industry
B) Starbucks in the coffee shop industry
C) FedEx in the overnight package delivery industry
D) Cirque de Soleil in the live entertainment industry
E) Walmart's logistics and distribution in the retail industry
G) A) and E)
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A) firms with weaknesses in areas where the challenger is strong
B) companies that are financially strong and possess favorable competitive market positioning
C) large national firms with vast capabilities and intermittent trivial resource deficiencies
D) strong and financially secure market leaders
E) small local and regional firms with unrestrained capabilities
G) C) and E)
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A) are nearly always a more attractive strategic option than merger and acquisition strategies.
B) carry the substantial risk of raising a company's costs.
C) carry the substantial risk of making a company overly dependent on its suppliers.
D) increase a company's risk exposure to changing technology and/or changing buyer preferences.
E) involve farming out value chain activities presently performed in-house to outside specialists and strategic allies.
G) A) and B)
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A) incorporated contractual safeguards.
B) made opportunities for learning a routine management process.
C) created a system to manage alliances in a systematic fashion.
D) established strong interpersonal relationships and established trust.
E) refrained from making commitments to its partners and ensured they do the same.
G) A) and E)
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Strategic alliances and cooperative part...View Answer
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Strategic assets are a company's most va...View Answer
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A) a market penetration curve, and this typically has an inflection point where the business model falls into place.
B) an opportunity to achieve first-mover status, which depends on analyzing the competitive status curve where all the potential rivals are encoded.
C) an emerging pitfall that is a counterpoint to the intended growth.
D) a normal curve scenario which signifies the average growth curve will be opportunistic.
E) an intense competition that constrains the company's prospects for rapid growth and superior profitability.
G) A) and C)
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A) new industry or market segments are yet to be developed and create altogether new consumer demand.
B) fast followers find it easy to leapfrog the pioneer with even better next-generation products of their own.
C) the market depends on the development of complementary products or services that are currently not available, buyers have high switching costs, and influential rivals are in position to derail the efforts of a first-mover.
D) entry barriers are high, substitute products or services are readily available, and buyers are prone to negotiate aggressively for better terms and lower prices.
E) there are nearly always big advantages to being a slow mover rather than an early mover, especially in regards to avoiding the "mistakes" of first or early movers.
G) B) and E)
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A) is an offensive strike employed by a market leader that is directed at pilfering customers away from unsuspecting rivals to boost profitability.
B) involves an unexpected (out-of-the-blue) preemptive strike to secure an advantageous position in a fast-growing market segment.
C) works best when a company is the industry's low-cost leader.
D) involves abandoning efforts to beat out competitors in existing markets and instead invent a new industry or new market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand.
E) involves the use of highly creative, never-used-before strategic moves to attack the competitive weaknesses of rivals.
G) B) and E)
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A) Vertical integration boosts a firm's capital investment in the industry, thus increasing business risk if the industry becomes unattractive later.
B) Vertical integration backward into parts and components manufacturing can impair a company's operating flexibility when it comes to changing out the use of certain parts and components.
C) Vertical integration reduces the opportunity for achieving greater product differentiation.
D) Forward or backward integration often calls for radically different skills and business capabilities than the firm possesses.
E) Vertical integration poses all kinds of capacity-matching problems.
G) C) and D)
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A) causing the company to become partially integrated instead of being fully integrated.
B) hollowing out a firm's own capabilities and losing touch with activities and expertise that contribute fundamentally to the firm's competitiveness and market success.
C) hurting a company's R&D capability.
D) putting the company in the position of being a late mover instead of an early mover.
E) increasing the firm's risk exposure to both supply chain management failures and shifts in the composition of the industry value chain.
G) A) and D)
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A) resource pooling and risk sharing, more adaptive response capabilities, and greater speed of deployment.
B) potential profitability of the alliance and related experience-curve economics.
C) the facilitation of best practices, more production capacity, and relevant synergistic savings.
D) the transactional and relational concept of operating practices and competencies.
E) material additions to a company's technological capabilities, strengthening of the firm's competitive position, and boosting of its profitability.
G) A) and C)
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A) discourage rival companies from merging with or acquiring the very companies that it is partnering with.
B) reduce overall business risk and raise entry barriers into the newly emerging industry.
C) help master new technologies and build new expertise and competencies, establish a stronger beachhead for participating in the target industry, and open up broader opportunities in the target industry.
D) help defeat competitors that are employing broad differentiation strategies.
E) enhance its chances of achieving global low-cost leadership.
G) C) and E)
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