A) increasing a company's ability to strongly differentiate its product and be successful with either a broad differentiation strategy or a focused differentiation strategy.
B) obtaining higher quality and/or cheaper components or services, improving a company's ability to innovate, and reducing its risk exposure.
C) speeding a company's entry into foreign markets.
D) permitting greater use of strategic alliances and collaborative partnerships.
E) giving a firm more direct control over the costs of value chain activities.
G) B) and E)
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A) eBay's online auction industry
B) NetJets' fractional jet ownership
C) Drybar's hair blowouts
D) Cirque de Soleil's live entertainment
E) Walmart's logistics and distribution
G) B) and D)
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Strategic alliances suffer from some dra...View Answer
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A) a joint venture.
B) a limited liability company.
C) a partnership.
D) sole proprietorship.
E) an S corporation.
G) D) and E)
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A) a merger involves one company purchasing the assets of another company with cash, whereas an acquisition involves a company acquiring another company by buying all of the shares of its common stock.
B) a merger is the combining of two or more companies into a single corporate entity, whereas an acquisition involves one company (the acquirer) purchasing and absorbing the operations of another company (the acquired) .
C) in a merger, the companies retain their original names, whereas in an acquisition the name of the company being acquired is changed to be the name of the acquiring company.
D) a merger is a combination of three or more companies, whereas an acquisition is a pooling of interests of just two companies.
E) a merger involves two or more companies deciding to adopt the same strategy, whereas an acquisition involves one company taking over the strategy-making function of another company.
G) A) and E)
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A) Remain steadfast to current product features and models to ensure resources are not diverted toward unproductive efforts.
B) Exclude volume discounts or better financing terms from the strategic response in order to maintain current profitability levels.
C) Gain product line exclusivity to force competitors to use other distributors.
D) Trimming the length of warranties to save money.
E) Stay away from competitor's clients since their loyalty will not allow them to switch.
G) B) and D)
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A) horizontal scale.
B) vertical scope.
C) outsourcing scope.
D) cooperative scaled scope.
E) focal scope.
G) D) and E)
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A) When the costs of pioneering are much higher than being a follower and only negligible learning/experience benefits accrue to the pioneer
B) When the marketplace is skeptical about the benefits of a new technology or product being pioneered by a first-mover
C) When the pioneer's products are somewhat primitive and are easily bested by late movers
D) When opportunities exist for a blue-ocean strategy to invent a new industry or distinctive market segment that creates altogether new demand
E) When technological change is rapid and fast-following rivals find it easy to leapfrog the pioneer with next-generation products of their own
G) All of the above
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A) Lower the risk of being attacked
B) Weaken the impact of any attack that occurs
C) Pressure challengers to aim their efforts at other rivals
D) Help protect a competitive advantage
E) Harm the firm's competitive position
G) B) and D)
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A) must first be a proficient manufacturer.
B) must be able to achieve the same scale economies as outside suppliers and match or beat suppliers' production efficiency with no drop-off in quality.
C) must have excess production capacity so that it has an ample in-house ability to undertake additional production activities.
D) needs to have a wide product line, so it can supply parts and components for many products.
E) should have a distinctive competence in production process technology and at least a core competence in manufacturing R&D.
G) A) and D)
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Forward integration can lower costs by i...View Answer
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A) being sensitive to cultural differences
B) managing the learning process and allowing for emerging circumstances
C) picking a good partner with good chemistry
D) recognizing that the alliance must benefit both sides
E) ensuring the division of work is directly apportioned to appropriate skill sets
G) C) and D)
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A) expand into foreign markets and/or control more of the industry value chain.
B) broaden the firm's product line and/or avoid the need for outsourcing.
C) gain a first-mover advantage over rivals in revamping the industry value chain.
D) add materially to a company's technological capabilities, strengthen the company's competitive position, and/or boost its profitability.
E) achieve product differentiation and/or lengthen the company's value chain to include more activities performed in-house and thereby gain a greater ability to reduce internal operating costs.
G) All of the above
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A) pioneering helps build up a firm's image and reputation and creates strong brand loyalty.
B) buyers remain strongly loyal to pioneering firms because of incentives and switching costs barriers.
C) there is a steep learning curve and when learning can be kept proprietary.
D) moving first can constitute a preemptive strike, making imitation extra hard or unlikely.
E) market uncertainties make it difficult to ascertain what will eventually succeed.
G) A) and D)
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A) Reduced vulnerability to powerful suppliers (who may be inclined to raise prices at every opportunity)
B) Reduced risks of disruptions in obtaining crucial components or support services
C) Reduced costs
D) Reduced business risk because of controlling a bigger portion of the overall industry value chain
E) Increase in a company's differentiation capabilities and perhaps achieving a differentiation-based competitive advantage
G) B) and E)
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A) are nearly always superior alternatives to forming alliances or partnerships with these same companies.
B) may offer considerable cost-saving opportunities and can also be beneficial in helping a company try to invent a new industry.
C) are a particularly effective way of pursuing a blue-ocean strategy and an outsourcing strategy.
D) seldom are superior alternatives to forming alliances with these same companies because of the financial drain of using the company's cash resources to accomplish the merger or acquisition.
E) are one of the best ways for helping a company strongly differentiate its product offering and use a differentiation strategy to strengthen its market position.
G) All of the above
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A) buyers respond immediately (to a dramatic cost-based price cut or imaginative ad campaign) .
B) competition creates an appealing new product.
C) the technology needs debugging.
D) new production capacity needs to be installed.
E) consumer acceptance of an innovative product takes time.
G) A) and C)
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A) builds, sustains, or enhances a core competence or competitive advantage.
B) blocks a competitive threat.
C) increases the bargaining power of alliance members over suppliers or buyers.
D) opens up important new market opportunities.
E) contracts out certain value chain activities that are normally performed in-house to outside vendors.
G) A) and D)
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A) are generally successful.
B) work well in cooperatively developing new technologies and new products but seldom work well in promoting greater supply chain efficiency.
C) work best when they are aimed at achieving a mutually beneficial competitive advantage for the allies.
D) can suffer culture clash and integration problems due to different management styles and business practices.
E) are rarely useful in helping a company win the race for global industry leadership.
G) All of the above
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A) resource pooling and risk sharing, more adaptive response capabilities, and greater speed of deployment.
B) potential profitability of the alliance and related experience-curve economics.
C) the facilitation of best practices, more production capacity, and relevant synergistic savings.
D) the transactional and relational concept of operating practices and competencies.
E) E) material additions to a company's technological capabilities, strengthening of the firm's competitive position, and boosting of its profitability.
G) A) and B)
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