BSG Exam 3
Strategic Offensive - Answer-called for when a company spots opportunities to gain profitable market
share at its rival's expense or when a company has no choice but to try to whittle away at a strong rival's
competitive advantage
Blue Ocean Strategy - Answer-offers growth in revenues and profits by discovering or inventing new
industry segments that create altogether new demand
Offensive Strategies - Answer-sometimes a company's best strategic option is to seize the initiative, go
on the attack, and launch a strategic offensive to improve its market position
Principal Offensive Strategy Options - Answer-1. Offer an equally good or better product at a lower
price.
2. Leapfrog competitors by being first to market with next-generation products.
3. Pursue continuous product innovation to draw sales and market share away from less innovative
rivals.
4. Pursue disruptive product innovations to create new markets.
5. Adopt and improve on the good ideas of other companies (rivals or otherwise).
6. Use hit-and-run or guerrilla marketing tactics to grab market share from complacent or distracted
rivals.
, 7. Launch a preemptive strike to secure an industry's limited resources or capture a rare opportunity
Defensive Strategies - Answer-Can help protect a competitive advantage but rarely are the basis for
creating one
First Mover Advantages - Answer-If market responds well to its initial move, the pioneer will benefit
from a monopoly position that enables it to recover its investment costs and make an attractive profit
First Mover Disadvantages - Answer-1. When costs are high relative to the benefits accrued and
imitative followers can achieve similar benefits with far lower costs.
2. When an innovator's products are somewhat primitive and do not live up to a buyer expectations
3. When rapid market evolution gives second movers the opening to leapfrog a first mover's products
with more attractive next-version products
4. When market uncertainties make it difficult to ascertain what will eventually succeed, allowing late
movers to wait until these needs are clarified
5. When customer loyalty to the pioneer is low and first mover's skills, know-how, what actions are
easily copied or even surpassed
Scope of the Firm - Answer-refers to the range of activities that the form performs internally, the
breadth of its product and service offerings, the extent of its geographic market presence, and its mix of
businesses.
Horizontal Scope - Answer-the range of product and service segments that a firm serves within its focal
market
Vertical Scope - Answer-the extent to which a firm's internal activities encompass the range of activities
that make up and industry's entire value chain system, from raw-material production to final sales and
service activities
Threat Analysis - Answer-the awareness of close competitors and the kinds of actions they make
Strategic Offensive - Answer-called for when a company spots opportunities to gain profitable market
share at its rival's expense or when a company has no choice but to try to whittle away at a strong rival's
competitive advantage
Blue Ocean Strategy - Answer-offers growth in revenues and profits by discovering or inventing new
industry segments that create altogether new demand
Offensive Strategies - Answer-sometimes a company's best strategic option is to seize the initiative, go
on the attack, and launch a strategic offensive to improve its market position
Principal Offensive Strategy Options - Answer-1. Offer an equally good or better product at a lower
price.
2. Leapfrog competitors by being first to market with next-generation products.
3. Pursue continuous product innovation to draw sales and market share away from less innovative
rivals.
4. Pursue disruptive product innovations to create new markets.
5. Adopt and improve on the good ideas of other companies (rivals or otherwise).
6. Use hit-and-run or guerrilla marketing tactics to grab market share from complacent or distracted
rivals.
, 7. Launch a preemptive strike to secure an industry's limited resources or capture a rare opportunity
Defensive Strategies - Answer-Can help protect a competitive advantage but rarely are the basis for
creating one
First Mover Advantages - Answer-If market responds well to its initial move, the pioneer will benefit
from a monopoly position that enables it to recover its investment costs and make an attractive profit
First Mover Disadvantages - Answer-1. When costs are high relative to the benefits accrued and
imitative followers can achieve similar benefits with far lower costs.
2. When an innovator's products are somewhat primitive and do not live up to a buyer expectations
3. When rapid market evolution gives second movers the opening to leapfrog a first mover's products
with more attractive next-version products
4. When market uncertainties make it difficult to ascertain what will eventually succeed, allowing late
movers to wait until these needs are clarified
5. When customer loyalty to the pioneer is low and first mover's skills, know-how, what actions are
easily copied or even surpassed
Scope of the Firm - Answer-refers to the range of activities that the form performs internally, the
breadth of its product and service offerings, the extent of its geographic market presence, and its mix of
businesses.
Horizontal Scope - Answer-the range of product and service segments that a firm serves within its focal
market
Vertical Scope - Answer-the extent to which a firm's internal activities encompass the range of activities
that make up and industry's entire value chain system, from raw-material production to final sales and
service activities
Threat Analysis - Answer-the awareness of close competitors and the kinds of actions they make
