Exam 6: Strengthening a Companys Competitive Position: Strategic Moves, Timing, and Scope of Operations

A) is a collaborative arrangement where companies join forces to defeat mutual competitive rivals.
B) involves two or more companies joining forces to pursue vertical integration.
C) is a formal agreement between two or more companies in which there is strategically relevant collaboration of some sort,joint contribution of resources,shared risk,shared control,and mutual dependence.
D) is a partnership between two companies that is typically intended to eliminate the need to engage in outsourcing.
E) is usually a cheaper and more effective way for companies to join forces than is merger.

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A) cutting prices below a weak rival's costs.
B) moving first to secure an advantageous competitive assets that rivals can't readily match or duplicate.
C) using hit-and-run tactics to grab sales and market share away from complacent or distracted rivals.
D) attacking the competitive weaknesses of rivals.
E) leapfrogging into next-generation products and technologies,thus forcing rivals to play catch-up.

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A) When the costs of pioneering are much higher than being a follower and only negligible buyer loyalty or cost savings accrue to the pioneer
B) When rivals are employing offensive strategies rather than defensive strategies
C) When the products of an innovator are somewhat primitive and do not live up to buyer expectations
D) When buyers are skeptical about the benefits of a new technology or product being pioneered by a first mover
E) When rapid market evolution (due to fast-paced changes in technology or buyer preferences) gives fast followers and maybe even cautious late movers the opening to leapfrog a first mover's products with more attractive next-version products

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A) it is best to be a fast follower rather than a first mover or a slow mover.
B) fast followers find it easy to leapfrog the pioneer with even better next-generation products of their own.
C) a slow mover may not be unduly penalized and first-mover advantages can be fleeting.
D) being a first mover generally entails relatively low risk and carries a potentially big advantage.
E) there are nearly always big advantages to being a slow mover rather than an early mover,especially as concerns avoiding the "mistakes" of first or early movers.

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A) speed entry into foreign markets and/or exercise stronger control over operating costs.
B) broaden the firm's product line and/or enable the company to charge a premium price for its product/service.
C) gain a first-mover advantage in adopting new production technologies and/or employ potent defensive strategies.
D) strengthen the company's competitive position and/or boost its profitability.
E) achieve greater product differentiation and/or gain better access to prospective buyers.

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A) When pioneering helps build a firm's image and reputation with buyers
B) When first-time customers remain strongly loyal to pioneering firms in making repeat purchases
C) When early commitments to new technologies,new-style components,new or emerging distribution channels,and so on can produce an absolute cost advantage over rivals
D) When moving first can constitute a preemptive strike,making imitation extra hard or unlikely
E) When rapid market evolution (due to fast-paced changes in technology or buyer preferences) presents opportunities to leapfrog a first-mover's products with more attractive next-version products

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A) expand a company's geographic coverage,extend its business into new product categories,or gain quick access to new technologies or other resources and capabilities.
B) weaken the bargaining power of either key suppliers or key customers.
C) reduce the company's vulnerability to industry driving forces.
D) facilitate a company's shift from one type of competitive strategy to another.
E) secure a higher credit rating and better access to additional financial capital.

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A) that a merger involves one company purchasing the assets of another company with cash,whereas an acquisition involves one company becoming the owner of another company by buying all of the shares of its common stock.
B) that a merger is the combining of two or more companies into a single corporate entity (with the newly created company often taking on a new name) whereas an acquisition is a combination in which one company,the acquirer,purchases and absorbs the operations of another,the acquired.
C) basically a play on words-in both instances,two companies become one.
D) that the brands of both companies are retained in a merger whereas with an acquisition there is only one surviving brand name.
E) that a merger involves two or more companies deciding to adopt the same strategy whereas an acquisition involves one company becoming the owner of another company but with each company still pursuing its own separate strategy.

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A) in allowing companies to bundle resources and competencies that are more valuable in a joint effort than when kept separate.
B) reducing costs,transferring skills,and expanding the product line.
C) enabling greater vertical integration.
D) in allowing the partners to transfer intellectual property rights and proprietary information.
E) in helping the partners to increase their respective market shares.

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A) extend a company's competitive and operating scope because its operations extend across more parts of the total industry value chain.
B) are one of the best strategic options for helping companies win the race for global market leadership.
C) are a cost effective means of expanding 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) are a good strategy option for improving a company's supply chain management capabilities,pursuing efforts to remodel a company's value chain,achieving direct control over the costs of performing value chain activities,and gaining access to buyers.

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A) backward integration (industry value chain activities performed previously by buyers) .
B) either partial integration (building positions in selected stages of the value chain) or tapered integration,which is a strategy that involves both outsourcing and performing the activity internally.
C) tapered forward (e.g. ,engaged directly in the sales operating activity to end users at the same time selling to third parties) .
D) full integration (participating in all stages of the industry vertical chain) .
E) forward integration (value chain activities performed by distributors) or forward toward end users.

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A) the increased time it takes to respond effectively to the fresh strategic moves of rival firms.
B) hollowing out the competitive capabilities a company needs to be a master of its own destiny.
C) impairing a company's capability to be a leader in product innovation.
D) increased vulnerability to shifts in buyer demand.
E) increased costs of differentiating the company's product/service from those of competitors.

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A) is an offensive attack used by a market leader to steal customers away from unsuspecting smaller rivals.
B) involves a preemptive strike to secure an advantageous position in a fast-growing market segment.
C) works best when a company is the industry's low-cost leader.
D) offers growth in revenues and profits by discovering or inventing a new industry or distinct market segment that allows a company to create and capture altogether new demand.
E) involves the use of highly creative,never-used-before strategic moves to attack the competitive weaknesses of rivals.

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A) raises distribution costs and ignores channel conflicts.
B) provides a relative cost disadvantage over rivals.
C) offers lower margins resulting in higher selling prices to end users.
D) includes partnering rather than competing with existing distributors.
E) All of these.

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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) enable use of offensive strategies and/or gain a first-mover advantage over rivals in revamping the industry value chain.
D) 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 greater ability to reduce internal operating costs.

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