A) random offensive attacks used by a market leader to steal customers away from unsuspecting smaller rivals.
B) undertaking surprise moves to secure an advantageous position in a fast-growing and profitable market segment; usually the guerrilla signals rivals that it will use deep price cuts to defend its newly won position.
C) work best if the guerrilla is the industry's low-cost leader.
D) pitting a small company's own competitive strengths head-on against the strengths of much larger rivals.
E) unexpected attacks (usually by a small competitor) to grab sales and market share from complacent or distracted rivals.
G) C) and D)
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A) performing industry value chain activities previously performed by suppliers or other companies engaged in earlier stages of the value chain.
B) Linking with businesses within the array of value chain activities to eliminate competition and broaden the product offering.
C) capitalizing on company's underutilized managerial capabilities for achieving greater synergistic cost advantages.
D) reducing the opportunity for achieving greater product differentiation.
E) developing new skills and business capabilities.
G) B) and E)
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A) an activity can be performed better or more cheaply by outside specialists.
B) it allows a company to focus on its core business and leverage its key resources.
C) outsourcing won't adversely hollow out the company's technical know-how, competencies, or capabilities while it improves organizational flexibility and speeds time to market.
D) it improves organizational flexibility and speeds time to market.
E) All of these.
G) All of the above
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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.
G) A) and B)
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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.
G) C) and D)
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A) a producer of organic vegetables deciding to expand into the production of organic fruits.
B) a supermarket chain acquiring a distributor of fresh fruits and vegetables.
C) a crude oil refiner purchasing a railroad company.
D) a hospital opening a nursing home for the aged.
E) a maker of prescription drugs acquiring a chain of hospitals.
G) A) and D)
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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.
G) None of the above
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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
G) A) and B)
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A) are nearly always a more attractive strategic option than merger and acquisition strategies.
B) carry the substantial risk of raising a company's costs.
C) carry the substantial risk of making a company overly dependent on its suppliers.
D) increase a company's risk exposure to changing technology and/or changing buyer preferences.
E) involve farming out value chain activities presently performed in-house to outside specialists and strategic allies.
G) A) and E)
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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.
G) None of the above
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A) discouraging deep price discounting on the part of ambitious rivals seeking to capture additional sales and market share.
B) lowering the risk of being attacked by rivals, weakening the impact of any attack that occurs, and influencing challengers to aim their offensive efforts at other rivals.
C) insulating a company from the impact of competitive pressures and industry driving forces.
D) weakening competitors in ways that make them largely irrelevant.
E) widening a company's competitive advantage over rivals.
G) All of the above
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A) refers to initiatives 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) entails attacking rivals head-on with deep price discounts and continuous product innovation.
D) involves abandoning efforts to beat out competitors in existing markets and, instead, inventing a new industry or new market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand.
E) involves the use of surprise hit-and-run guerrilla tactics to harass money-losing rivals and drive them into bankruptcy.
G) All of the above
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A) Market leaders that are vulnerable
B) Runner-up firms with weaknesses in areas where the offensive-minded challenger is strong
C) Small local and regional companies with limited capabilities
D) Struggling enterprises that are on the verge of going under
E) Other offensive-minded companies with a sizable war chest of cash and marketable securities
G) A) and C)
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A) are nearly always successful in achieving their desired purpose (unlike strategic alliances and collaborative partnerships) .
B) all too frequently do not produce the hoped-for outcomes.
C) are generally more effective in securing a new competitive advantage than in protecting an existing competitive advantage.
D) are highly risky because of the financial drain that comes from using the company's cash resources to pay for the costs of the merger or acquisition.
E) are usually more successful in helping a company's shift from one competitive strategy to another than in improving a company's competitive strength and resource capabilities.
G) B) and D)
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A) They do not produce the hoped for outcomes and changes to existing operations may not eventuate.
B) Cost savings may prove smaller than expected.
C) Gains in competitive capabilities may take substantially longer or never materialize.
D) Efforts to mesh corporate cultures can stall due to formidable resistance from organization members and key employees can become disenchanted and leave.
E) All of the above.
G) B) and C)
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A) are nearly always a superior strategic alternative 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 and lead the convergence of industries whose boundaries are being blurred by changing technologies and new market opportunities.
C) are a particularly effective way of pursuing a blue ocean strategy and outsourcing strategies.
D) seldom are a superior strategic alternative to forming alliances or partnerships 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) None of the above
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A) Diverging objectives and priorities
B) An inability to work well together
C) The emergence of more attractive technological paths
D) Disagreement over how to divide the profits gained from joint collaboration
E) Changing conditions that make the purpose of the alliance obsolete
G) B) and E)
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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.
G) A) and C)
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A) Being able to control the wholesale/retail portion of the industry value chain
B) Fewer disruptions in the delivery of the company's products to end users
C) Gaining better access to end users and better market visibility
D) Broadening the company's product line
E) Allowing the firm access to greater economies of scale
G) B) and E)
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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.
G) D) and E)
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