BSG MIDTERM COMPREHENSIVE STUDY
GUIDE 2026 COMPETITIVE STRATEGY
SOLUTIONS VERIFIED A+
◉ Which of the following is typically the most compelling strategic
reason from pursuing forward vertical integration?
Answer: To gain better access to end users, improve market
visibility, and enhance brand name awareness.
◉ In which of the following instances is being a first-mover not
particularly advantageous?
Answer: When first-time customers do not remain strongly loyal to
pioneering firms in making repeat purchases
◉ The purposes of defensive strategies are to
Answer: lower the risk of being attacked by rivals, weaken the
impact of any attack that occurs, and influence challengers to aim
their offensive efforts at other rivals
◉ Which of the following is not among the potential benefits that a
company can gain by outsourcing value chain activities presently
preformed in-house?
,Answer: Improving a company's ability to strongly differentiate its
product, lowering the costs of integrating both forward and
backward, and transferring the risk of adverse changes in buyer
demand for the company's product to outside vendors
◉ Mergers and acquisitions typically aim at achieving such
objectives as
Answer: expanding a compay's geographic coverage, creating a more
cost-efficient operation out of the combined companies, and/or
extending the company's business into new product categories
◉ Based on Figure 6.1, which one of the following is not a strategic
action that a company can take to complement its choice of one of
the five generic competitive strategy options and maximize the
power of its overall strategy
Answer: -Initiating actions to compete globally instead of nationally
-Exerting additional efforts to achieve strong product differentiation
◉ Which of the following is not one of the strategic options that
companies have for using their websites?
Answer: Creating as much channel conflict as possible so as to
quickly learn weather all customer-realted transactions should be
conducted at the company's website or whether the company needs
to continue selling through traditional wholesales, distributors, and
retailers
, ◉ A strategic alliance
Answer: is a collaborative arrangement where two or more
companies join forces to achieve mutually beneficial outcomes
◉ Which of the following is not a potential advantage of backward
vertical integration?
Answer: Reduced business risk because of controlling a bigger
portion of the overall industry value chain
◉ A company racing for global market leadership often finds it
useful to enter into strategic alliances with firms in foreign countries
in order to
Answer: get into critical country markets more quickly and gain
inside knowledge from local partners about unfamiliar
markets/cultures
◉ Which one of the following is an example of an offensive strategy?
Answer: Pursuing disruptive product innovation to create new
markets
◉ Which one of the following is not a good type of rival for an
offensive-minded company to target?
GUIDE 2026 COMPETITIVE STRATEGY
SOLUTIONS VERIFIED A+
◉ Which of the following is typically the most compelling strategic
reason from pursuing forward vertical integration?
Answer: To gain better access to end users, improve market
visibility, and enhance brand name awareness.
◉ In which of the following instances is being a first-mover not
particularly advantageous?
Answer: When first-time customers do not remain strongly loyal to
pioneering firms in making repeat purchases
◉ The purposes of defensive strategies are to
Answer: lower the risk of being attacked by rivals, weaken the
impact of any attack that occurs, and influence challengers to aim
their offensive efforts at other rivals
◉ Which of the following is not among the potential benefits that a
company can gain by outsourcing value chain activities presently
preformed in-house?
,Answer: Improving a company's ability to strongly differentiate its
product, lowering the costs of integrating both forward and
backward, and transferring the risk of adverse changes in buyer
demand for the company's product to outside vendors
◉ Mergers and acquisitions typically aim at achieving such
objectives as
Answer: expanding a compay's geographic coverage, creating a more
cost-efficient operation out of the combined companies, and/or
extending the company's business into new product categories
◉ Based on Figure 6.1, which one of the following is not a strategic
action that a company can take to complement its choice of one of
the five generic competitive strategy options and maximize the
power of its overall strategy
Answer: -Initiating actions to compete globally instead of nationally
-Exerting additional efforts to achieve strong product differentiation
◉ Which of the following is not one of the strategic options that
companies have for using their websites?
Answer: Creating as much channel conflict as possible so as to
quickly learn weather all customer-realted transactions should be
conducted at the company's website or whether the company needs
to continue selling through traditional wholesales, distributors, and
retailers
, ◉ A strategic alliance
Answer: is a collaborative arrangement where two or more
companies join forces to achieve mutually beneficial outcomes
◉ Which of the following is not a potential advantage of backward
vertical integration?
Answer: Reduced business risk because of controlling a bigger
portion of the overall industry value chain
◉ A company racing for global market leadership often finds it
useful to enter into strategic alliances with firms in foreign countries
in order to
Answer: get into critical country markets more quickly and gain
inside knowledge from local partners about unfamiliar
markets/cultures
◉ Which one of the following is an example of an offensive strategy?
Answer: Pursuing disruptive product innovation to create new
markets
◉ Which one of the following is not a good type of rival for an
offensive-minded company to target?
