Team 6 - Chapter 6: Strengthening a Company’s Competitive Position

Question 1

A late-mover advantages happens when:

Accepted Answer

Customer loyalty to the pioneer is low

Question 2

A blue-ocean strategy offers growth in revenues and profits by discovering or inventing new industry segments.

Accepted Answer

True

Question 3

This strategy seeks to gain a dramatic competitive advantage by abandoning efforts to beat competitors in markets.

Accepted Answer

Blue-ocean Strategy

Question 4

It is involved in contracting out certain value chainactivities that are performed in-house to outside vendors.

Accepted Answer

Outsourcing

Question 5

Increase business risk and capacity-matching problems are disadvantages of a vertical integration strategy.

Accepted Answer

True

Question 6

Formal agreement between companies in which they agree to work cooperatively toward some common objective.

Accepted Answer

Strategic Alliance

Question 7

The range of product and service segments that the firm serves within its product or service market.

Accepted Answer

Horizontal Scope

Question 8

Acquisition participates in multiple stages of an industry’s value chain system.

Accepted Answer

False

Question 9

Defensive strategies can take either of two forms: actions to...

Accepted Answer

block challengers and signal the likelihood of strong retaliation

Question 10

The worst offensives use a company’s powerful resources to attack in the areas where they are competitively weakest.

Accepted Answer

False

Question 11

Strategic alliances can vary in terms of the duration and the extent of the collaboration.

Accepted Answer

True

Question 12

Good defensive strategies can help protect a competitive advantage but rarely are the basis for creating one.

Accepted Answer

True

Question 13

To match or beat suppliers’ production efficiency is an advantage of a vertical integration strategy.

Accepted Answer

True

Question 14

Integration forward or backward is an advantage of a vertical integration strategy.

Accepted Answer

False

Question 15

When a company spots opportunities to gain profitable market share at its rivals’ expense.

Accepted Answer

Strategic Offensives

Questions 15