Policy - ch 6
The partners in a _____ share decision making authority, control of the operation, and profits earned.
joint venture
Co-location differs from co-opetition in that co-location:
occurs when goods and services offered by two or more organizations under different brands are stationed very close to each other.
multipoint
same rival, different markets
A _____ simply involves two or more firms collaborating as opposed to creating a new entity together.
strategic alliance
_____ is a situation where a firm necessarily faces the same rival in more than one market.
Multipoint competition
Typically, most disruptive innovations are overnight sensations
False
Which of the following is true about a fighting brand?
Firms launch fighting brands to protect their market shares.
Which of the following best describes the foothold strategy?
It involves a firm intentionally establishing a small position within a market in which it does not yet compete.
Which of the following best describes multipoint competition?
It is a situation where a firm faces the same rival in more than one market.
Which of the following best describes mutual forbearance?
It is a situation where rivals do not act aggressively because each recognizes that the other can retaliate in multiple markets.
Which of the following is true about co-opetition?
It views competition and cooperation as two separate and distinct processes.
Which of the following responses of firms to disruptive innovations carries with it the risk of cannibalization of a firm's traditional business?
Matching the competitors' move
Which of the following is true about the first mover strategy?
The first mover bears the costs of developing the product and educating customers.
First moves that build on strategic resources such as patented technology are difficult for rivals to imitate and thus are likely to succeed.
True
Auto malls that contain several different car dealerships are found in many areas. This is an example of _____.
co-location
In many cities theatres and art galleries are clustered together in one neighborhood. This is an example of _____.
co-location
When goods and services offered by two or more organizations under different brands are stationed very close to each other:
co-location occurs.
NEC (a Japanese electronics company) has three different relationships with Hewlett-Packard Co.: customer, supplier, and competitor. Some units of each company work cooperatively with the other company, while other units are direct competitors. This is an example of _____.
co-opetition
Ray Noorda, the founder of software firm Novell, coined the term _____.
co-opetition
The term _____ refers to a blending of competition and cooperation between two firms.
co-opetition
Genentech's early development of biotechnology allowed it to overcome many of the pharmaceutical industry's traditional entry barriers (such as financial capital and distribution networks) and become a profitable firm. This is an example of a _____ strategy.
first mover
A _____ advantage exists when making the initial move into a market allows a firm to establish a dominant position that other firms struggle to overcome.
first-mover
When IKEA enters a new country, it opens just one store. This store is then used as a showcase to establish IKEA's brand. Once IKEA gains brand recognition in a country, more stores are established. This is an example of the _____ strategy.
foothold
A strategic alliance differs from a joint venture in that a strategic alliance:
is a cooperative arrangement between two or more organizations that does not involve the creation of a new entity.
A joint venture:
is a cooperative arrangement that involves two or more organizations each contributing to the creation of a new entity.
A _____ is a cooperative arrangement that involves two or more organizations each contributing to the creaton of a new entity.
joint venture
Exom and Royshe are two oil and natural gas exploration and production companies. They created a new entity, CalEner, for oil exploration in California. The two parent companies remained separate. CalEner is an example of a _____.
joint venture
Cigarette makers R.J. Reynolds (RJR) and Philip Morris square off not only in the United States but in many countries around the world. This is an example of:
multipoint competition.
Kellogg's and General Mills compete fiercely for the breakfast cereal market not only in the United States but in many countries around the world. This is an example of:
multipoint competition.
In the late 1990s, Southwest Airlines and United Airlines competed in some but not all markets. United's announcement of plans to move into some of Southwest's other routes caused Southwest to publicly threaten retaliation. United then backed down and Southwest had no reason to attack. The result was better performance for both firms. This is an example of _____.
mutual forbearance
Blue Ocean Strategy
new untapped market
disruptive innovation
new ways that threaten the old ways
mutual forbearance
no aggression
foothold
position that is intentional
A _____ is a cooperative arrangement between two or more organizations that does not involve the creation of a new entity.
strategic alliance
In June 2011, Twitter and Yahoo! Japan entered into a cooperative arrangement that involves relevant Tweets appearing within various functions offered by Yahoo! Japan. This arrangement did not involve creation of a new entity. Such a cooperative arrangement is an example of a _____.
strategic alliance
In January 2011, Merck and PAREXEL International Corporation announced a cooperative arrangement for collaboration on biotechnology efforts known as biosimilars. This arrangement did not involve creation of a new entity. Such cooperative arrangements are examples of _____.
strategic alliances
Bricolage
whatever is available is used for creativity
fighting brand
you enter a lower brand into the same market without taking sales away from your primary product
Which of the following best describes the blue ocean strategy?
A firm using a blue ocean strategy tries to make the competition irrelevant.
Which of the following is a factor that determines the likelihood of a firm responding to a competitive move?
Awareness
AMC
Awareness Motivation Capability
A _____ brand is a lower-end brand that a firm introduces to try protect the firm's market share without damaging the firm's existing brands.
fighting
When threatened with cheaper microprocessors from firms like AMD, Intel launched Celeron for retaining the lower-end of the chip market without devaluing its existing brand, Intel. Celeron is an example of a _____ brand.
fighting
Apple's creation of a user-friendly small computer in the early 1980s helped fuel a reputation for creativity and innovation that persists today. This is an example of a _____ strategy.
first mover
Which of the following is true about a firm following the concept of bricolage?
Executives apply the concept of bricolage when they combine ideas from existing businesses in order to create a new business.
When online trading emerged in the late 1990s, A.G. Edwards avoided online trading because personal relations with brokerage clients are central to the firm's strategy. Which of the following responses of firms to disruptive innovations does this example illustrate?
Focusing on traditional mode of business
A fighting brand is a lower-end brand that a firm introduces to try protect the firm's market share without damaging the firm's existing brands
true
joint venture
2+ firms create a new entity
_____ is one of the three factors that determines the likelihood of a firm responding to a competitive move.
Capability
Which of the following is true about disruptive innovations?
Disruptive innovations conflict with, and threaten to replace, traditional approaches to competing within an industry.
Fresh Mornings, a breakfast chain, is known for its old-style potatoes, ham, and egg sandwiches. A rival introduces a new breakfast concept with exotic fruits and sandwiches that customers can make themselves, that conflicts with the industry's current competitive practices. The owners of Fresh mornings realize that they may lose some customers to this new concept. But instead of competing by offering the new breakfast concept that the rival has introduced, they decide to stick to and to market their old-style potatoes, ham, and egg sandwiches, which they are famous for. Which of the following responses are they following?
Focusing on traditional mode of business
co opetiton
blending 2 firms
A _____ strategy involves creating a new, untapped market rather than competing with rivals in an existing market.
blue ocean
One Flew South's strategy of locating their high-end restaurant in the Atlanta airport rather than where premier establishments are usually placed - the city center or crowded suburbs, is an example of the _____ strategy.
blue ocean
The printing press is a classical example of the concept of _____.
bricolage
Monster Mini Golf partnered with the rock band KISS to create a niche for itself by custom-designing a frightfully fun course that features animated KISS and monster props lurking in all 18 fairways. This is an example of the:
concept of bricolage.
A _____ innovation is an innovation that conflicts with, and threatens to replace, traditional approaches to competing within an industry.
disruptive
By undercutting rivals on tuition, using data analytics to identify students who are struggling, and relying on low paid adjunct instructors rather than full-time professors Southern New Hampshire University developed what type of situation?
disruptive
A joint venture is a cooperative arrangement between two or more organizations that does not involve the creation of a new entity
false
A strategic alliance is a cooperative arrangement that involves two or more organizations each contributing to the creation of a new entity.
false
Bricolage is a situation where a firm faces the same rival in more than one market
false
Co-opetition is a situation that involves very rapid and unpredictable moves and countermoves that can undermine competitive advantages
false
Cutting prices to match a rival's lower cost products can be effective in the long-term
false
Executives routinely use the bricolage strategy to respond to a rival who has introduced a disruptive innovation.
false
Federal Express' invention of the fast-shipping business is an example of the foothold strategy.
false
Johannes Gutenberg's printing press is a classic example of the foothold strategy.
false
The blue ocean strategy involves blending of competition and cooperation between two firms
false
The blue ocean strategy involves using whatever materials and resources happen to be available as the inputs into a creative process
false
The bricolage strategy refers to a blending of competition and cooperation between two firms.
false
The bricolage strategy, that many executives adopt to compete against a rival, may devalue a firm's brands.
false
The concept of bricolage stresses on firms using innovative strategies for competing in existing markets.
false
A foothold is a small position that a firm intentionally establishes within a market in which it does not yet compete
true
A strategic alliance is a cooperative arrangement between two or more organizations that does not involve the creation of a new entity.
true
Co-location occurs when goods and services offered under different brands are located very close to each other
true
Executives apply the concept of bricolage when they combine ideas from existing businesses in order to create a new business.
true
Executives who are deciding whether to pursue a disruptive innovation must first make sure that their firm can sustain itself during an initial period of slow growth.
true
Fighting brands prevent devaluation of a firm's established brands.
true
First movers must be willing to commit sufficient resources to follow through on their pioneering efforts.
true
Hypercompetition is a situation that involves very rapid and unpredictable moves and countermoves that can undermine competitive advantages
true
If there is a long delay between a competitor's attack and a firm's response, this generally provides the attacker with an edge.
true
Instead of trying to outmaneuver its competition, a firm using a blue ocean strategy tries to make the competition irrelevant
true
Mutual forbearance is a situation where rivals do not act aggressively because each recognizes that the other can retaliate in multiple markets.
true
The partners in a joint venture share decision making authority, control of the operation, and any profits that the joint venture earns.
true
The term co-opetition refers to a blending of competition and cooperation between two firms
true
The three factors that determine the likelihood of a firm responding to a competitive move are awareness, motivation, and capability.
true
