B)moving first to secure an advantageous position that rivals are foreclosedor discouraged from duplicating.C)using a distinctive competence that rivals can't match to take sales andmarket share away from competitively weak rivals.D)surprise introductions of new and very innovative products to securemarket share leadership and then informing shocked rivals that theattacker will use deep price cuts, if necessary, to defend its newly-wonmarket-leading position.E)leading the industry in introducing next-generation products and puttingrivals in the position of being market followers and having to scramble toimitate the leader's innovations.16INCORRECTWhich one of the following is nota good type of rival for an offensive-minded company to target?
A)Market leaders that are vulnerableB)Runner-up firms with weaknesses in areas where the challenger is strong.C)Small local and regional companies with limited capabilitiesD)Other offensive-minded companies with a sizable war chest of cash andmarketable securitiesE)Struggling enterprises that are on the verge of going under17CORRECTDefensive strategies:A)serve the purpose of helping protect competitive advantage, lowering therisk of being attacked, weakening the impact of any attack that occurs,and influencing would-be challengers to aim their attacks elsewhere; theyoften entail actions that signal would-be challengers that retaliation islikely.B)are the best ways to counter the efforts of firms trying to make marketinroads with substitute products.C)tend to work more frequently than offensive strategies because they areusually less risky and are more likely to succeed if they are predicated onactions to capture first-mover advantages via preemptive strikes thatforeclose imitation by rivals.D)employ efforts to block challengers from using end-run offensives andpre-emptive strike strategies and they are most likely to succeed whenthe defensive actions to thwart challengers stress vigorous price-cuttingand added advertising.E)work best when they involve a combination of vertical integration,acquisition of other firms, outsourcing certain value chain activities, andstrategic alliances with suppliers.18INCORRECTOne very important advantage of a product-information-only Web sitestrategy is:A)lower advertising costs.
B)avoiding the extra costs associated with operating Web site e-stores.C)avoiding channel conflict—trying to sell online in direct competitionwith retail dealers signals both a weak strategic commitment to dealersand a willingness to cannibalize dealers' sales and growth potential.D)added ability to create a positive image of the company.E)lower sales force costs.19INCORRECTTwo big appeals of a brick-and-click strategy are:A)lower customer service costs and more ability to achieve strong productdifferentiation.
47.Which of the following is a potential defensive move to ward off challenger firms?A)Granting volume discounts or better financing terms to dealers/distributors and providingdiscount coupons to buyers to help discourage them from experimenting with othersuppliers/brandsB)Signaling challengers that retaliation is likely in the event they launch an attackC)Lengthening warranties, offering free or low-cost training and support services, andproviding coupons and sample giveaways to buyers most prone to experiment with usingrival brandsD)Maintaining a war chest of cash and marketable securitiesE)All of these.Answer: EDifficulty: Easy15
Web Site Strategies: Which One to Employ?48.One of the biggest Internet-related strategic issues facing many businesses isDifficulty: Medium
49.Which of the following is notone of the options that companies have for using the Internet as adistribution channel to access buyers?
Answer: ADifficulty: Easy
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Fundamentals of Financial Management
Brigham
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Test Bank, Chapter 650.One very important advantage of a product-information-only Web site strategy isA)lower advertising costs and lower customer service costs.B)avoiding the extra costs associated with operating Web site e-stores.C)added ability to interest potential buyers in purchasing the company’s products.D)avoiding channel conflict.E)added ability to rely less heavily on strategic alliances with distributors/dealers.Answer: DDifficulty: Medium