CHAPTER 6 GLO-BUS EXAM
QUESTIONS & ACTUAL CORRECT
ANSWERS
Strategic offensive principles - Correct Answer ✔✔ -Focusing relentlessly on building
competitive advantage and then striving to convert it into sustainable advantage
-Applying resources where rivals are least able to defend themselves
-Employing the element of surprise as opposed to doing what rivals expect and are
prepared for
-Displaying a capacity for swift, decisive, and overwhelming actions to overpower rivals.
Choosing The Basis for Competitive Attack - Correct Answer ✔✔ - avoid directly
challenging a targeted competitor where it is strongest
- use the firm's strongest strategic assets to attack a competitor's weaknesses
- the offensive may not yield immediate results if market rivals are strong competitors
- be prepared for the threatened competitor's counter-response
Principal Offensive Strategy Options - Correct 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
Blue Ocean Strategy - Correct Answer ✔✔ offers growth in revenuesand profits by
discovering or inventing new industrysegments that create altogether new demand
Defensive Strategies - Correct Answer ✔✔ Good defensive strategies can help protect
competitive advantage but rarely are the basis for creating one.
Defensive strategies can take either of two forms
Actions to block challengers
Actions to signal the likelihood of strong retaliation
Blocking The Avenues Open to Challengers - Correct Answer ✔✔ •Introduce new
features and models to broaden product lines to close off gaps and vacant niches.
•Maintain economy-pricing to thwart lower price attacks.
•Discourage buyers from trying competitors' brands.
QUESTIONS & ACTUAL CORRECT
ANSWERS
Strategic offensive principles - Correct Answer ✔✔ -Focusing relentlessly on building
competitive advantage and then striving to convert it into sustainable advantage
-Applying resources where rivals are least able to defend themselves
-Employing the element of surprise as opposed to doing what rivals expect and are
prepared for
-Displaying a capacity for swift, decisive, and overwhelming actions to overpower rivals.
Choosing The Basis for Competitive Attack - Correct Answer ✔✔ - avoid directly
challenging a targeted competitor where it is strongest
- use the firm's strongest strategic assets to attack a competitor's weaknesses
- the offensive may not yield immediate results if market rivals are strong competitors
- be prepared for the threatened competitor's counter-response
Principal Offensive Strategy Options - Correct 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
Blue Ocean Strategy - Correct Answer ✔✔ offers growth in revenuesand profits by
discovering or inventing new industrysegments that create altogether new demand
Defensive Strategies - Correct Answer ✔✔ Good defensive strategies can help protect
competitive advantage but rarely are the basis for creating one.
Defensive strategies can take either of two forms
Actions to block challengers
Actions to signal the likelihood of strong retaliation
Blocking The Avenues Open to Challengers - Correct Answer ✔✔ •Introduce new
features and models to broaden product lines to close off gaps and vacant niches.
•Maintain economy-pricing to thwart lower price attacks.
•Discourage buyers from trying competitors' brands.
