Chapter 6 BSG Exam Questions with
Complete Solutions5
The best offensive moves tend to incorporate several key principles: - ANSWERS-1) Focusing
relentlessly on building competitive advantage and then striving to convert it into a sustainable
advantage
2) Applying resources where rivals are least able to defend themselves
3) Employing the element of surprise as opposed to doing what rivals expect and are prepared
for
4) Displaying a strong bias for swift, decisive, and overwhelming actions to overpower rivals
Choosing the basis for competitive attack - ANSWERS-strategic offensives should, be based on
exploiting a company's strongest strategic assets.
Offensive strategy option includes: - ANSWERS-1) Offering equal good or better product at a
lower price
2) Leapfrogging competitors by being the first to market
3) Pursuing continuous product innovation to draw sales and market share away from less
innovative rivals
4) Pursuing disruptive product innovations to create new markers
5) Adopting or improving on the good ideas of other companies
6) Using hit-and-run or guerrilla warfare tactics to grab market share from complacent or
distracted
rivals
7) Launching a preemptive strike to secure an advantageous position that rivals are prevented
or
discouraged from duplicating.
, Blue Ocean Strategy - ANSWERS-Seeks to gain a dramatic and a durable competitive advantage
by abandoning effort to beat out competitors in existing markets and instead inventing a new
industry or distinctive market segment that renders existing competitors largely irrelevant and
allows a company to create
and capture altogether new demand.
Blue ocean strategy offers - ANSWERS-growth in revenues and profits by discovering or
inventing new industry segments that create altogether new demand
Two distinct types of market space: - ANSWERS-1) Industry boundaries are defined and
accepted, the competitive rules of the game are well understood by all industry members, and
companies try to outperform rivals by capturing a bigger market share of existing demand
2) Industry doesn't exist yet, untainted by competition, and offers wide open opportunity
for profitable and rapid growth if a company can come up with a product offering and strategy
that allows it to create new demand rather than fight over existing demand
Defensive strategies counter offensive strategies by: - ANSWERS-1) Lowering the risk of being
attacked
2) Weakening the impact of any attacks that occurs
3) Influencing challengers to aim their attacks at other rivals
Because of first-mover advantages & disadvantages - ANSWERS-competitive advantage can
spring from when a move is made as well as from what move is made
5 conditions first-movers have an advantage: - ANSWERS-1) When pioneering helps build a
firm's reputation with buyers and creates brand loyalty
2) When a first mover's customers will thereafter face significant switching costs
3) When property rights protections thwart rapid imitation of the initial move.
Complete Solutions5
The best offensive moves tend to incorporate several key principles: - ANSWERS-1) Focusing
relentlessly on building competitive advantage and then striving to convert it into a sustainable
advantage
2) Applying resources where rivals are least able to defend themselves
3) Employing the element of surprise as opposed to doing what rivals expect and are prepared
for
4) Displaying a strong bias for swift, decisive, and overwhelming actions to overpower rivals
Choosing the basis for competitive attack - ANSWERS-strategic offensives should, be based on
exploiting a company's strongest strategic assets.
Offensive strategy option includes: - ANSWERS-1) Offering equal good or better product at a
lower price
2) Leapfrogging competitors by being the first to market
3) Pursuing continuous product innovation to draw sales and market share away from less
innovative rivals
4) Pursuing disruptive product innovations to create new markers
5) Adopting or improving on the good ideas of other companies
6) Using hit-and-run or guerrilla warfare tactics to grab market share from complacent or
distracted
rivals
7) Launching a preemptive strike to secure an advantageous position that rivals are prevented
or
discouraged from duplicating.
, Blue Ocean Strategy - ANSWERS-Seeks to gain a dramatic and a durable competitive advantage
by abandoning effort to beat out competitors in existing markets and instead inventing a new
industry or distinctive market segment that renders existing competitors largely irrelevant and
allows a company to create
and capture altogether new demand.
Blue ocean strategy offers - ANSWERS-growth in revenues and profits by discovering or
inventing new industry segments that create altogether new demand
Two distinct types of market space: - ANSWERS-1) Industry boundaries are defined and
accepted, the competitive rules of the game are well understood by all industry members, and
companies try to outperform rivals by capturing a bigger market share of existing demand
2) Industry doesn't exist yet, untainted by competition, and offers wide open opportunity
for profitable and rapid growth if a company can come up with a product offering and strategy
that allows it to create new demand rather than fight over existing demand
Defensive strategies counter offensive strategies by: - ANSWERS-1) Lowering the risk of being
attacked
2) Weakening the impact of any attacks that occurs
3) Influencing challengers to aim their attacks at other rivals
Because of first-mover advantages & disadvantages - ANSWERS-competitive advantage can
spring from when a move is made as well as from what move is made
5 conditions first-movers have an advantage: - ANSWERS-1) When pioneering helps build a
firm's reputation with buyers and creates brand loyalty
2) When a first mover's customers will thereafter face significant switching costs
3) When property rights protections thwart rapid imitation of the initial move.
