STR 581: Ch 6: Strengthening a Company's Competitive Position Questions With Complete Solutions, Graded A+

The best strategic offensives for companies involve which of the following? - Answer-1. striving to convert a competitive advantage into a sustainable advantage 2. overwhelming rivals with swift and decisive action A company's strategic offensive should be based on ____ - Answer-the company's strengths as well as its rivals strengths and weaknesses Lowering prices can be a successful competitive strategy for a company if _____ - Answer-1. the company convinces buyers that its products are as good as its competitors' products 2. its competitors maintain product prices at higher levels The introduction of disruptive product innovations _____ - Answer-is a risky business strategy that has the potential to earn a company a majority of the market share Guerrilla warfare tactic in business competition include which of the following? - Answer-1. catching rivals off guard with intense burst of promotional activity 2. launching special campaigns to weaken a rival that is undergoing a period of internal discord When should a company undertake a strategic offensive? - Answer-1. when the company has no option other than to try to lessen a strong rival's competitive advantage 2. when the company identifies a chance to improve its market share at a competitor's expense True or false: A company's strategic offensive is usually based on brand-name recognition. - Answer-false What are examples of preemptive strikes? - Answer-1. obtaining the best retail location in a mall 2. entering into exclusive, long-term contracts with the best suppliersPrice cutting can be an effective strategy from companies that _____. - Answer-have already achieved a cost advantage Which of the following companies have used disruptive produce innovations to create new markets? - Answer-1. bumble 2. venmo A business guerrilla offensive is best suited for ___ - Answer-small companies that lack the capacity to launch a full strategic offensive against better established rivals Which two firms would be the best targets for an offensive strategic attack by a company? - Answer-1. regional firms with limited capabilities 2. firms in danger of going out of business in order to be successful, a preemptive strike by a company needs to ____ - Answer-give the company a prime position in the market that rivals cannot easily bypass A blue-ocean strategy is a strategy that seeks to gain a competitive advantage by _____ - Answerinventing a new segment of the market that makes existing competitors no longer relevant What is a sign that a leading firm may be vulnerable to an offensive strategic attack? - Answer-the firm's use of aging technology and outdated equipment When should a company undertake a strategic offensive? - Answer-1. when the company has no option other than to try to lessen a strong rival's competitive advantage 2. when the company identifies a chance to improve its market share at a competitor's expense What are some reasons that companies adopt defensive strategies? - Answer-1. to minimize the impact of any competitive attack that occurs 2. to lower the risk of being attacked by competitorsPrice cutting can be an effective strategy for companies that _____ - Answer-have already achieved a cost advantage The term "blue ocean" refers to a market space in which ____ - Answer-an industry does not yet exist and the market space is untainted by competition. The defensive approach that companies use most frequently to defend their market position is _______. - Answer-to block avenues that competitors might use to launch a strategic offensive the best strategic offensives for companies involve which of the following? - Answer-1. striving to convert a competitive advantage into a sustainable advantage 2. overwhelming rivals with swift and decisive action What are examples of ways that companies signal would be challengers that retaliation is likely? - Answer-1. maintaining cash reserves and marketable securities to func countermeasures 2. publicly announcing a commitment to maintaining market share The benefits of defensive strategies include which of the following? - Answer-1. protecting a firm's resources 2. strengthening. affirms position in the market What is the soundest approach for timing a company's offensive or defensive strategic moves? - Answerto be aware of first-mover advantages and disadvantages Which statement about establishing the technical standard in an industry is true? - Answer-establishing a technical stand is an experience-based advantage that can grow over time A blue ocean strategy is a strategy that seeks to gain a competitive advantage by ____ - Answer-inventing a new segment of the market that makes existing competitors no longer relevant What are typical obstacles that a company might create to deter the strategic offensive of a would-be challenger? - Answer-1. offering lower prices by maintaining a line-up of economy based prices2. introducing new features and adding new models 3. lengthening warranties and offering free support services What can lead to victory in a standard war among early movers? - Answer-1. employing penetration pricing 2. making use of fast-cycle product development capabilities 3. gaining the support of key customers and suppliers