Capstone Chapter 6 TEST SOLUTIONS

Capstone Chapter 6 TEST SOLUTIONS Sometimes it makes sense for a company to go on the offensive to improve its market position and business performance. The best offensives tend to incorporate the following EXCEPT: - ANSWER focusing relentlessly on building a competitive advantage. Once a company has decided to employ a particular generic competitive strategy, then it must make such additional strategic choices, such as: - ANSWER All of these. Which one of the following is NOT a strategic choice that a company must make to complement and supplement its choice of one of the five generic competitive strategies? - ANSWER Whether to employ a market share leadership strategy. Strategic offensives should, as a general rule, be based on: - ANSWER exploiting a company's strongest competitive assets—its most valuable resources and capabilities. The principal offensive strategy options include all of the following EXCEPT: - ANSWER initiating a market threat and counterattack simultaneously to effect a distraction. Which of the following is NOT a principal offensive strategy option? - ANSWER Being the final competitor to market a next-generation product so as to guarantee the product is operationally sound. An offensive to yield good results can be short if: - ANSWER buyers respond immediately (to a dramatic cost-based price cut or imaginative ad campaign). Which of the following rivals make the best targets for an offensive attack? - ANSWER Firms with weaknesses in areas where the challenger is strong. When challenging a struggling rival, it can: - ANSWER All of these. A blue-ocean strategy: - ANSWER involves abandoning efforts to beat out competitors in existing markets and instead invent a new industry or new market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand. Which of the following is NOT a prime example of a blue-ocean market strategy? - ANSWER Walmart's logistics and distribution. All firms are subject to offensive challenges from rivals. The intent of the best defensive move is to: - ANSWER All of these. Which of the following is NOT a purpose of a defensive strategy? - ANSWER To increase the risk of having to defend an attack. Which of the following ways are employed by defending companies to fend off a competitive attack? - ANSWER Gain product line exclusivity to force competitors to use other distributors. What is the goal of signaling a challenger that strong retaliation is likely in the event of an attack? - ANSWER To dissuade challengers from attacking or diverting them into using less threatening options. Which of the following signals would NOT warn challengers that strong retaliation is likely? - ANSWER Announcing strong quarterly earnings potential to financial analysts. Being first to initiate a particular strategic move can have a high payoff in all of the following EXCEPT when: - ANSWER market uncertainties make it difficult to ascertain what will eventually succeed.