Test Bank – Essentials of Strategic Management: The
Quest for Competitive Advantage |
Chapter 6
Bonobos’s Guideshop store concept allows men to have a personalized shopping experience, where they
can try on clothing in any size or color, and then have it delivered the next day to their home or office. This
fashion retail concept is a good example of
a defensive strategy to capture occupied territory by maneuvering around rivals.
a defensive strategy to minimize the competitive advantages of rivals.
an offensive strategy to offer an equally good or better product at a lower price.
an offensive strategy to leapfrog competitors by being the first adopter of next-generation
technologies or being first to market with next-generation products.
,2. Award: 10.00 po ints
an offensive strategy to seek uncharted waters and compete in blue oceans.
The principal offensive strategy options include: (1) offering an equally good or better product at a lower
price; (2) leapfrogging competitors by being the first to market with next-generation technology or
products; (3) pursuing continuous product innovation to draw sales and market share away from less
innovative rivals; (4) pursuing disruptive product innovations to create new markets; (5) adopting and
improving on the good ideas of other companies; (6) using hit-and-run or guerrilla warfare tactics to grab
sales and market share from complacent or distracted rivals; and (7) launching a preemptive strike to
capture a rare opportunity or secure an industry’s limited resources. Blocking the avenues open to
challengers is considered a defensive strategy.
References
Multiple Choice Difficulty: 2 Medium Learning
Objective: 06-01 Understand whether and
when to pursue offensive or defensive
strategic moves to improve a company's
market position.
A company’s menu of strategic choices to supplement its decision to employ one of the five basic
competitive strategies does not include
whether and when to employ defensive strategies to protect the company’s market position.
whether to integrate backward or forward into more stages of the industry value chain.
whether to employ a preemptive strike type of green ocean strategy.
whether and when to go on the offensive and initiate aggressive strategic moves to improve the
company’s market position.
whether to bolster the company’s market position via acquisition or merger and/or whether to
enter into strategic alliances or partnership arrangements with other enterprises.
Four of the six options for strengthening a company’s competitive position, discussed in Chapter 6, are
listed in the answer choices. The principal offensive strategy options include: (1) offering an equally good
or better product at a lower price, (2) leapfrogging competitors by being the first to market with next-
,3. Award: 10.00 po ints
generation technology or products, (3) pursuing continuous product innovation to draw sales and market
share away from less innovative rivals, (4) pursuing disruptive product innovations to create new markets,
(5) adopting and improving on the good ideas of other companies, (6) using hit-and-run or guerrilla warfare
tactics to grab sales and market share from complacent or distracted rivals, and (7) launching a preemptive
strike to capture a rare opportunity or secure an industry’s limited resources. While the chapter discusses
blue ocean strategy, there is no such thing as a “green ocean strategy.”
References
Multiple Choice Difficulty: 2 Medium Learning
Objective: 06-01 Understand whether and
when to pursue offensive or defensive
strategic moves to improve a company's
market position.
Companies like Amazon, Apple, Facebook, and Google employ all but one of the following offensive actions
to complement and supplement the choice of one of the five generic competitive strategies. Which is not
an example of an offensive move?
focusing on building competitive advantages
employing the element of surprise as opposed to doing what rivals expect and are prepared for
pursuing a market share leadership strategy
displaying a strong bias for swift, decisive, and overwhelming actions to overpower
creating and deploying company resources to cause rivals to defend themselves
The offensive moves that these four companies pursue incorporate: (1) focusing relentlessly on building
competitive advantage and then striving to convert it into a sustainable advantage, (2) applying resources
where rivals are least able to defend themselves, (3) employing the element of surprise as opposed to
doing what rivals expect and are prepared for, and (4) displaying a capacity for swift and decisive actions to
overwhelm rivals. Pursuing a market share leadership strategy is not among those moves.
, 4. Award: 10.00 po ints
References
Multiple Choice Difficulty: 2 Medium Learning
Objective: 06-01 Understand whether and
when to pursue offensive or defensive
strategic moves to improve a company's
market position.
Which one of the following is an example of an offensive strategy?
blocking the avenues open to challengers
signaling challengers that retaliation is likely
pursuing continuous product innovation to draw sales and market share away from less innovative
rivals
introducing new features or models to fill vacant niches in its overall product offering and better
match the product offerings of key rivals
maintaining a war chest of cash and marketable securities
The principal offensive strategy options include pursuing continuous product innovation to draw sales and
market share away from less innovative rivals. All of the other choices are not considered offensive
strategies.
References
Multiple Choice Difficulty: 2 Medium Learning
Objective: 06-01 Understand whether and
when to pursue offensive or defensive
strategic moves to improve a company's
market position.
A hit-and-run or guerrilla warfare type offensive strategy
involves random offensive attacks used by a market leader to steal customers away from
unsuspecting smaller rivals.
Quest for Competitive Advantage |
Chapter 6
Bonobos’s Guideshop store concept allows men to have a personalized shopping experience, where they
can try on clothing in any size or color, and then have it delivered the next day to their home or office. This
fashion retail concept is a good example of
a defensive strategy to capture occupied territory by maneuvering around rivals.
a defensive strategy to minimize the competitive advantages of rivals.
an offensive strategy to offer an equally good or better product at a lower price.
an offensive strategy to leapfrog competitors by being the first adopter of next-generation
technologies or being first to market with next-generation products.
,2. Award: 10.00 po ints
an offensive strategy to seek uncharted waters and compete in blue oceans.
The principal offensive strategy options include: (1) offering an equally good or better product at a lower
price; (2) leapfrogging competitors by being the first to market with next-generation technology or
products; (3) pursuing continuous product innovation to draw sales and market share away from less
innovative rivals; (4) pursuing disruptive product innovations to create new markets; (5) adopting and
improving on the good ideas of other companies; (6) using hit-and-run or guerrilla warfare tactics to grab
sales and market share from complacent or distracted rivals; and (7) launching a preemptive strike to
capture a rare opportunity or secure an industry’s limited resources. Blocking the avenues open to
challengers is considered a defensive strategy.
References
Multiple Choice Difficulty: 2 Medium Learning
Objective: 06-01 Understand whether and
when to pursue offensive or defensive
strategic moves to improve a company's
market position.
A company’s menu of strategic choices to supplement its decision to employ one of the five basic
competitive strategies does not include
whether and when to employ defensive strategies to protect the company’s market position.
whether to integrate backward or forward into more stages of the industry value chain.
whether to employ a preemptive strike type of green ocean strategy.
whether and when to go on the offensive and initiate aggressive strategic moves to improve the
company’s market position.
whether to bolster the company’s market position via acquisition or merger and/or whether to
enter into strategic alliances or partnership arrangements with other enterprises.
Four of the six options for strengthening a company’s competitive position, discussed in Chapter 6, are
listed in the answer choices. The principal offensive strategy options include: (1) offering an equally good
or better product at a lower price, (2) leapfrogging competitors by being the first to market with next-
,3. Award: 10.00 po ints
generation technology or products, (3) pursuing continuous product innovation to draw sales and market
share away from less innovative rivals, (4) pursuing disruptive product innovations to create new markets,
(5) adopting and improving on the good ideas of other companies, (6) using hit-and-run or guerrilla warfare
tactics to grab sales and market share from complacent or distracted rivals, and (7) launching a preemptive
strike to capture a rare opportunity or secure an industry’s limited resources. While the chapter discusses
blue ocean strategy, there is no such thing as a “green ocean strategy.”
References
Multiple Choice Difficulty: 2 Medium Learning
Objective: 06-01 Understand whether and
when to pursue offensive or defensive
strategic moves to improve a company's
market position.
Companies like Amazon, Apple, Facebook, and Google employ all but one of the following offensive actions
to complement and supplement the choice of one of the five generic competitive strategies. Which is not
an example of an offensive move?
focusing on building competitive advantages
employing the element of surprise as opposed to doing what rivals expect and are prepared for
pursuing a market share leadership strategy
displaying a strong bias for swift, decisive, and overwhelming actions to overpower
creating and deploying company resources to cause rivals to defend themselves
The offensive moves that these four companies pursue incorporate: (1) focusing relentlessly on building
competitive advantage and then striving to convert it into a sustainable advantage, (2) applying resources
where rivals are least able to defend themselves, (3) employing the element of surprise as opposed to
doing what rivals expect and are prepared for, and (4) displaying a capacity for swift and decisive actions to
overwhelm rivals. Pursuing a market share leadership strategy is not among those moves.
, 4. Award: 10.00 po ints
References
Multiple Choice Difficulty: 2 Medium Learning
Objective: 06-01 Understand whether and
when to pursue offensive or defensive
strategic moves to improve a company's
market position.
Which one of the following is an example of an offensive strategy?
blocking the avenues open to challengers
signaling challengers that retaliation is likely
pursuing continuous product innovation to draw sales and market share away from less innovative
rivals
introducing new features or models to fill vacant niches in its overall product offering and better
match the product offerings of key rivals
maintaining a war chest of cash and marketable securities
The principal offensive strategy options include pursuing continuous product innovation to draw sales and
market share away from less innovative rivals. All of the other choices are not considered offensive
strategies.
References
Multiple Choice Difficulty: 2 Medium Learning
Objective: 06-01 Understand whether and
when to pursue offensive or defensive
strategic moves to improve a company's
market position.
A hit-and-run or guerrilla warfare type offensive strategy
involves random offensive attacks used by a market leader to steal customers away from
unsuspecting smaller rivals.
