BSG Exam Practice -59 Questions with 100% Correct Answers

Strategic Offensive 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 offers growth in revenues and profits by discovering or inventing new industry segments that create altogether new demand Offensive Strategies 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 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 Can help protect a competitive advantage but rarely are the basis for creating one First Mover Advantages 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 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