Chapter 6 Quiz

A late-mover advantage does NOT arise when

-property rights protections in the form of patents, copyrights, and trademarks prevent the ready imitation of initial moves.

Which of the following is NOT one of the big risks of outsourcing value chain activities presently performed in-house?

A company may be less flexible in accommodating shifting buyer preferences.

Which of the following statements about blue-ocean strategies is NOT true?

Blue-ocean strategies are offensive strategies that involve a preemptive strike to secure an advantageous position in a mature market segment.

All of the following factors make an alliance "strategic," as opposed to just a convenient business arrangement, EXCEPT

a strategic alliance enables greater opportunities for employee advancement.

The mix of performing an activity internally as well as outsourcing in any given stage of the vertical chain refers to which vertical integration strategy?

a tapered integration strategy

Merger and acquisition strategies

are often driven by such strategic objectives as to expand a company's geographic coverage or extend its business into new product categories.

All of the following are signals to would-be challengers that retaliation is likely EXCEPT

creating collaborative relationships with other industry leaders to block new entrants.

Which of the following is NOT a disadvantage of vertical integration?

decreased product quality

A firm can pursue vertical integration by all of the following EXCEPT

expanding its range of product and service segments within its product or service market

The purpose of defensive strategies is to

lower the risk of being attacked, to weaken the impact of any attack that occurs, and to influence challengers to aim their efforts at other rivals.

Which of the following companies are the best targets for offensive-minded firms to challenge?

market leaders that are vulnerable

Building positions in selected stages of the industry value chain is referred to as a

partial integration strategy.

Backward integration involves performing industry value chain activities

previously performed by suppliers or other enterprises engaged in earlier stages of the industry value chain.

Horizontal scope refers to the

range of product and service segments that a firm services within its focal market.

The most frequently used approach to defending a company's present position involves actions

restricting a challenger's option for initiating a competitive attack

Conditions that create first-mover advantages include all of the following EXCEPT

the costs of pioneering are high relative to the benefits accrued.

Strategic offensives should be based on

those areas of strength where the company has its greatest competitive advantage over targeted rivals.

The extent to which a firm engages in the various value chain activities, from initial activities all the way to after-sales activities, is called

vertical scope.

When is outsourcing NOT beneficial?

when internal control over a particular activity is deemed essential

Which of the following is NOT one of the additional strategic choices a company must make once it has decided to employ a particular generic competitive strategy?

whether to focus on providing services or products to a limited amount of customers in a market niche