A) the costs of pioneering are much higher than being a follower and only negligible learning/experience curve benefits accrue to the pioneer.
B) rapid market evolution gives fast followers an opening to leapfrog the pioneer with next-generation products of their own.
C) the pioneer's products are somewhat primitive and do not live up to buyer expectations, allowing clever followers to win disenchanted buyers with better-performing products.
D) the marketplace is skeptical about the benefits of a new technology or product being pioneered by a first-mover.
E) the market response is strong and the pioneer gains a monopoly position that enables it to recover its investment.
G) None of the above
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The general strategic objectives of merg...View Answer
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Strategic alliances and cooperative part...View Answer
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A) discourage rival companies from merging with or acquiring the very companies that it is partnering with.
B) reduce overall business risk and raise entry barriers into the newly emerging industry.
C) help master new technologies and build new expertise and competencies, establish a stronger beachhead for participating in the target industry, and open up broader opportunities in the target industry.
D) help defeat competitors that are employing broad differentiation strategies.
E) enhance its chances of achieving global low-cost leadership.
G) A) and B)
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Cost-based strategies involve lowering prices to gain market share.Lower prices can produce market share gains if competitors don't respond with price cuts of their own and if the challenger convinces buyers that its product is just as good or better.Price-cutting offensives should be initiated only by companies that have first achieved a cost advantage.A blue-ocean strategy seeks to gain a dramatic and durable competitive advantage by abandoning efforts to beat out competitors in existing markets and,instead,inventing a new market segment that renders existing competitors irrelevant and allows a company to create and capture altogether new demand.A "blue ocean" is a market space where the industry does not really exist yet,is untainted by competition,and offers wide-open opportunity for profitable and rapid growth if a company can create new demand with a new type of product offering.A terrific example of such blue-ocean market space is the online auction industry that eBay created and now dominates.
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The principal advantages of strategic al...View Answer
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In order to capture the benefits of enga...View Answer
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A) ensuring more costly components or services.
B) improving the company's inability to innovate by allying with "best-in-class" suppliers.
C) reducing the company's risk exposure to changing technology and/or changing buyer preferences.
D) increasing the firm's inability to assemble diverse kinds of expertise speedily and efficiently.
E) reducing its information technology and operational costs so that organizational flexibility is maintained.
G) A) and B)
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A) Whether to focus on building competitive advantages
B) Whether to employ the element of surprise as opposed to doing what rivals expect and are prepared for
C) Whether to employ a market share leadership strategy
D) Whether to display a strong bias for swift, decisive, and overwhelming actions to overpower
E) Whether to create and deploy company resources to cause rivals to defend themselves
G) C) and E)
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A) that partners will not fully cooperate or share all they know, preferring instead to guard their most valuable information and protect their more valuable know-how.
B) becoming dependent on other companies for essential expertise and capabilities.
C) the added time and extra expenses associated with engaging in collaborative efforts.
D) having to compromise the company's own priorities and strategies in reaching agreements with partners.
E) the collaborative arrangements will not live up to expectations.
G) B) and C)
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A) Joint venture
B) Vertical integration
C) Strategic alliance
D) Forward integration
E) Outsourcing
G) B) and D)
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Typically,strategic alliances involve sh...View Answer
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A) sap the rival's financial strength and competitive position.
B) weaken the rival's resolve.
C) accelerate the rival's exit from the market.
D) threaten the rival's overall survival in the market.
E) strengthen the rival's loyal following.
G) D) and E)
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E
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A) Publicly announcing management's commitment to maintain market share
B) Publicly committing to a company policy of matching competitors' terms or pricing
C) Maintaining a war chest of cash and marketable securities
D) Making a strong counter-response to the moves of weak competitors
E) Announcing strong quarterly earnings potential to financial analysts
G) C) and D)
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A) tapered integration.
B) partial integration.
C) full integration.
D) forward integration.
E) backward integration.
G) B) and E)
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Outsourcing strategies narrow the scope ...View Answer
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A) full integration when activities remain the domain of key suppliers.
B) tapered integration if the firm consolidates all activities in-house.
C) differentiation-based competitive advantage when activities enhance the performance of the final product.
D) focused differentiation strategy when the market is broad and the product is a commodity.
E) lower degree of flexibility in accommodating shifting buyer preferences.
G) B) and D)
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A) causing the company to become partially integrated instead of being fully integrated.
B) hollowing out a firm's own capabilities and losing touch with activities and expertise that contribute fundamentally to the firm's competitiveness and market success.
C) hurting a company's R&D capability.
D) putting the company in the position of being a late mover instead of an early mover.
E) increasing the firm's risk exposure to both supply chain management failures and shifts in the composition of the industry value chain.
G) B) and E)
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A) develops over time, out of effort and learning.
B) decreases a company's knowledge assets.
C) creates successful strategic alliances.
D) decreases a company's knowledge capabilities.
E) rapidly transfers assets into the strategic alliance.
G) B) and D)
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A) extend a company's competitive scope within the same industry by expanding its operations across multiple segments or stages of the industry value chain.
B) are one of the best strategic options for helping companies win the race for global market leadership.
C) offer good potential to expand a company's lineup of products and services.
D) are particularly effective in boosting a company's ability to expand into additional geographic markets, particularly the markets of foreign countries.
E) area good strategy option for helping a company revamp its value chain and bypass low value-added activities.
G) B) and D)
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A
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