BSG Exam 3 Questions with Complete
Solutions8
Strategic Offensive - ANSWERS-called for when a company spots opportunities to gain profitable
market share at its rival's expense or when a company has no choice but to try to whittle away
at a strong rival's competitive advantage
Blue Ocean Strategy - ANSWERS-offers growth in revenues and profits by discovering or
inventing new industry segments that create altogether new demand
Offensive Strategies - ANSWERS-sometimes a company's best strategic option is to seize the
initiative, go on the attack, and launch a strategic offensive to improve its market position
Principal Offensive Strategy Options - ANSWERS-1. Offer an equally good or better product at a
lower price.
2. Leapfrog competitors by being first to market with next-generation products.
3. Pursue continuous product innovation to draw sales and market share away from less
innovative rivals.
4. Pursue disruptive product innovations to create new markets.
5. Adopt and improve on the good ideas of other companies (rivals or otherwise).
6. Use hit-and-run or guerrilla marketing tactics to grab market share from complacent or
distracted rivals.
7. Launch a preemptive strike to secure an industry's limited resources or capture a rare
opportunity
Defensive Strategies - ANSWERS-Can help protect a competitive advantage but rarely are the
basis for creating one
, First Mover Advantages - ANSWERS-If market responds well to its initial move, the pioneer will
benefit from a monopoly position that enables it to recover its investment costs and make an
attractive profit
First Mover Disadvantages - ANSWERS-1. When costs are high relative to the benefits accrued
and imitative followers can achieve similar benefits with far lower costs.
2. When an innovator's products are somewhat primitive and do not live up to a buyer
expectations
3. When rapid market evolution gives second movers the opening to leapfrog a first mover's
products with more attractive next-version products
4. When market uncertainties make it difficult to ascertain what will eventually succeed,
allowing late movers to wait until these needs are clarified
5. When customer loyalty to the pioneer is low and first mover's skills, know-how, what actions
are easily copied or even surpassed
Scope of the Firm - ANSWERS-refers to the range of activities that the form performs internally,
the breadth of its product and service offerings, the extent of its geographic market presence,
and its mix of businesses.
Horizontal Scope - ANSWERS-the range of product and service segments that a firm serves
within its focal market
Vertical Scope - ANSWERS-the extent to which a firm's internal activities encompass the range
of activities that make up and industry's entire value chain system, from raw-material
production to final sales and service activities
Threat Analysis - ANSWERS-the awareness of close competitors and the kinds of actions they
make
Signaling - ANSWERS-the goal is to dissuade challengers from attacking at all or to divert them
to less threatening options
Solutions8
Strategic Offensive - ANSWERS-called for when a company spots opportunities to gain profitable
market share at its rival's expense or when a company has no choice but to try to whittle away
at a strong rival's competitive advantage
Blue Ocean Strategy - ANSWERS-offers growth in revenues and profits by discovering or
inventing new industry segments that create altogether new demand
Offensive Strategies - ANSWERS-sometimes a company's best strategic option is to seize the
initiative, go on the attack, and launch a strategic offensive to improve its market position
Principal Offensive Strategy Options - ANSWERS-1. Offer an equally good or better product at a
lower price.
2. Leapfrog competitors by being first to market with next-generation products.
3. Pursue continuous product innovation to draw sales and market share away from less
innovative rivals.
4. Pursue disruptive product innovations to create new markets.
5. Adopt and improve on the good ideas of other companies (rivals or otherwise).
6. Use hit-and-run or guerrilla marketing tactics to grab market share from complacent or
distracted rivals.
7. Launch a preemptive strike to secure an industry's limited resources or capture a rare
opportunity
Defensive Strategies - ANSWERS-Can help protect a competitive advantage but rarely are the
basis for creating one
, First Mover Advantages - ANSWERS-If market responds well to its initial move, the pioneer will
benefit from a monopoly position that enables it to recover its investment costs and make an
attractive profit
First Mover Disadvantages - ANSWERS-1. When costs are high relative to the benefits accrued
and imitative followers can achieve similar benefits with far lower costs.
2. When an innovator's products are somewhat primitive and do not live up to a buyer
expectations
3. When rapid market evolution gives second movers the opening to leapfrog a first mover's
products with more attractive next-version products
4. When market uncertainties make it difficult to ascertain what will eventually succeed,
allowing late movers to wait until these needs are clarified
5. When customer loyalty to the pioneer is low and first mover's skills, know-how, what actions
are easily copied or even surpassed
Scope of the Firm - ANSWERS-refers to the range of activities that the form performs internally,
the breadth of its product and service offerings, the extent of its geographic market presence,
and its mix of businesses.
Horizontal Scope - ANSWERS-the range of product and service segments that a firm serves
within its focal market
Vertical Scope - ANSWERS-the extent to which a firm's internal activities encompass the range
of activities that make up and industry's entire value chain system, from raw-material
production to final sales and service activities
Threat Analysis - ANSWERS-the awareness of close competitors and the kinds of actions they
make
Signaling - ANSWERS-the goal is to dissuade challengers from attacking at all or to divert them
to less threatening options
