Chapter 6 Quiz: Strategic Choices in Competitive Strategy

When should a firm go on the offensive to improve its market position?

• When the firm has a strong market share

• When it spots opportunities to gain market share at rivals' expense

• When there is no competition in the industry

• When the firm wants to avoid risks

Which of the following is NOT an offensive strategy option?

• Offering a lower-priced product with equal or better quality

• Leapfrogging competitors with next-generation technology

• Avoiding competition and maintaining the status quo

• Pursuing disruptive innovation to create new markets

What is the main goal of a Blue Ocean Strategy?

• Competing aggressively in an established market

• Creating a new industry or market space with minimal competition

• Lowering prices to attract more customers

• Improving customer service to gain a competitive advantage

Which of the following firms would be the best target for an offensive attack?

• A strong market leader with no weaknesses

• A struggling firm on the verge of failure

• A firm with no direct competitors

• A company with no strategic focus

Which of the following is a defensive strategy to protect market position?

• Launching a price war against competitors

• Expanding into unrelated industries

• Blocking avenues open to challengers

• Ignoring competitors’ strategies

What is a key component of a brick-and-click strategy?

• Selling exclusively in physical retail stores

• Offering only online sales with no physical presence

• Combining online and physical sales to reach customers effectively

• Avoiding online sales to maintain a personal customer experience

Which of the following is a benefit of vertical integration?

• Lowering costs by outsourcing production

• Expanding control over more stages of the value chain

• Reducing product differentiation

• Decreasing market share

What is the main purpose of strategic alliances and partnerships?

• To increase competition in an industry

• To combine resources and share risks for mutual benefit

• To reduce employee workloads

• To avoid mergers and acquisitions

Which factor determines whether a company should be a first-mover or a late-mover?

• The level of brand loyalty in the market

• The number of employees in the company

• The size of the advertising budget

• The company's social media presence

How can a firm signal that retaliation is likely in response to a competitive attack?

• Increasing prices drastically

• Publicly announcing its commitment to maintaining market share

• Ignoring the competitor’s actions

• Expanding into unrelated industries