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Which of the following is not usually a characteristic of competing in an emerging industry?
B. Technological know-how is freely shared and exchanged among the early participants, with no competitive advantage attached to patents and proprietary technology
Which of the following is not a typical feature of an emerging industry or a challenge that companies in emerging industries have to contend with and try to overcome?
A. How to raise sufficient capital to fund an R&D effort that will enable the company to win the race against rivals to patent the industry's technology
To be successful in emerging industries, companies usually have to fashion a strategy that includes such strategic elements as
C. Pushing hard to perfect the technology, improve product quality and develop additional attractive performance features
Which one of the following is not one of the strategy elements that companies in emerging industries are likely to consider incorporating into their strategy?
E. Being aggressive in cutting prices below key rivals and establishing a reputation of being the low-price leader
Young companies in fast-growing, emerging markets face such hurdles as
B. Managing rapid expansion, defending against competitors trying to horn in on their success and building a strong competitive position for the long term
A company competing in a rapid-growth industry
B. Needs a strategy predicated on growing faster than the market average, so that it can boost its market share and improve its competitive standing vis-à-vis rivals
Which one of the following is not likely to be a suitable strategy option for companies competing in rapid-growth industries?
D. Vertically integrating forward and backward to enable greater control of the industry value chain
Companies competing in rapid growth industries are not well-advised to consider which one of the following strategy elements in crafting their strategy?
C. Pushing hard to develop a distinctive competence in new technology R&D
The transition to a slower-growth, maturing industry environment tends to result in
B. Growing buyer sophistication and more head-to-head competition for market share
In a maturing industry, slackening growth rates tend to alter the competitive environment in such ways as
E. Increased buyer sophistication, more head-to-head competition for market share, "topping out" problems in adding new capacity and increased difficulty in coming up with new product features, finding further uses for the product and sustaining buyer excitement
Which one of the following statements does not represent one of the typical fundamental changes in an industry as it approaches maturity?
C. New scale economies develop and overall costs per unit produced and sold drop significantly
Which one of the following strategic actions is not well-matched to dealing with the transition from rapid growth to industry maturity?
A. Steering a middle course between low cost, differentiation and focusing
In a maturing market where the rates of growth are on the decline, rival firms can often improve their competitive position in the marketplace by
D. Pruning marginal products and models, improving value chain efficiency, trimming costs, emphasizing cost reduction, acquiring rival firms at bargain prices, building new or more flexible competitive capabilities and expanding internationally
The typical strategic mistakes companies can make during the transition from fairly rapid growth to industry maturity include
B. Steering a middle course between low-cost, differentiation and focusing; being slow to respond to stiffening competition; overexpanding in the face of slowing growth; and overspending on advertising and sales promotion efforts
Which one of the following is not a strategic pitfall or typical strategic mistake companies can make during the transition from fairly rapid growth to industry maturity?
A. Going overboard in outsourcing the performance of value chain activities to allies and partners
Businesses competing in stagnant or declining industries must
A. Make a fundamental strategic choice—whether to remain committed to the industry for the long-term despite the industry's dim prospects or whether to pursue an end-game strategy to withdraw gradually or quickly from the marketv
A company that decides to stick with a stagnant or declining industry
E. May be able to grow and prosper if market demand decays very slowly and it has the competitive capabilities to take market share away from weaker competitors
Potentially promising strategy alternatives for a company that decides to stick with a declining industry—because top management is encouraged by the remaining opportunities and/or sees merit in striving for market share leadership (or even just being one of the few remaining companies in the industry), include
D. Pursuing a focused strategy aimed at the fastest-growing or slowest-decaying market segments and stressing differentiation based on quality improvement and product innovation
An end-game strategy in a stagnant or declining industry usually involves
B. Either a fast-exit/sell-out quickly strategy or a slow exit strategy that involves a gradual phasing down of operations coupled with an objective of getting the most cash flow from the business
A slow-exit type of end-game strategy involves
C. A gradual phasing down of operations coupled with an objective of generating the greatest possible harvest of cash from the business for as long as possible
A turbulent or high-velocity industry environment is characterized by
D. Rapid technological change, short product life cycles, the entry of important new rivals, lots of competitive maneuvering by rivals and fast-evolving customer requirements and expectations—all occurring in a manner that creates swirling market conditions
The central strategy-making challenge in a turbulent market environment is
C. Managing change
In turbulent high-velocity markets, a company's approach to coping with rapid change should, ideally,
B. Try to lead change with proactive strategic moves while at the same time trying to anticipate and prepare for upcoming changes and being quick to react to unexpected developments
In trying to deal with high-velocity change, a company's three strategic postures or options are
B. To react to change, to anticipate change and/or to try to lead change
In trying to deal with high-velocity change, a company
B. Can react to change, anticipate change and/or try to lead change
Competitive success in fast-changing or high velocity markets tends to hinge on a company's ability to
E. Improvise, experiment, adapt, reinvent and regenerate as market and competitive conditions shift rapidly and sometimes unpredictably
Those strategic moves and initiatives that seem to offer the best payoff in turbulent, high-velocity markets include
E. All of these
The types of strategic moves and initiatives that seem to offer the best payoff in fast-changing markets include
C. Investing aggressively to stay on the leading edge of technological know-how; launching fresh actions every few months, not just when a competitive response is needed; having quick-response capabilities; and keeping the company's products fresh and exciting enough to stand out in the midst of all the change that is taking place
An industry is said to be fragmented when
D. The supply side of the market is populated by hundreds, perhaps thousands of sellers, no one of which has a substantial share of total industry sales
The standout competitive characteristic or feature of a fragmented industry is
E. The absence of market leaders with king-sized market shares and widespread buyer recognition
Which of the following does not generally account for why the supply side of an industry may be fragmented and contain hundreds or even thousands of companies?
A. A condition where most all competitors have, for one reason or another, chosen to pursue focus and market niche strategies
Which of the following is not usually a promising option for competing in a fragmented industry?
C. Employing a best-cost provider strategy aimed at giving buyers more value for their money and trying to appeal to a broader customer base
Which of the following is usually a promising strategic option for competing in a fragmented industry?
E. All of the above can be promising options
Promising strategic options for companies competing in a fragmented industry include
C. Specializing by product type or by customer type, becoming a low-cost operator and focusing on a limited geographic area
Companies that are determined to grow their revenues and earnings at double-digit rates year after year usually need to
B. Craft a portfolio of short-jump, medium-jump and long-jump strategic initiatives
For a company to sustain rapid revenue and earnings growth, it needs to
C. Craft a portfolio of strategic initiatives that range from strengthening its existing businesses to using its existing resources and capabilities to enter new businesses with promising growth potential to planting the seeds for ventures in businesses that do not yet exist
What is the main strategic concern that faces an industry leader?
C. How to defend and strengthen its overall leadership position, perhaps even becoming the dominant leader as opposed to just a leader
The basic strategic options for an industry leader include
B. Staying on the offensive, fortifying and defending the company's present position and playing competitive hardball when smaller rivals rock the boat and try to mount a challenge
Which of the following strategies is not likely to be attractive to a firm that is the acknowledged market share leader in its industry?
B. A blue ocean type of offensive strategy
Runner-up firms or second-tier firms often have to overcome such obstacles as
B. Less money to spend on mass media advertising, difficulty in gaining customer recognition, less access to scale economies and limited funds for capital expansion or making acquisitions
Ambitious runner-up companies that want to join the ranks of the industry front-runners are well-advised to
C. Employ such "mover and shaker" strategic offensives as growth via acquisition, pursuing initiatives to dramatically drive down costs or pioneering a leapfrog technological breakthrough
An ambitious runner-up firm intent on becoming an industry front-runner needs a strategy aimed at
C. Building a competitive advantage of its own via some type of "mover and shaker" offensive that helps set it apart from rivals and draws buyer attention
Which of the following strategy options is generally ill-advised for a runner-up firm that is willing to patiently nibble away at the lead of industry front-runners and build its sales at a moderate pace?
A. A price-cutting offensive extending over many market segments
Strategy options for less ambitious or less aggressive runner-up firms include
E. All of these
Potentially attractive strategy options for a company in an also-ran or declining competitive position include
A turnaround strategy, a fortify-and-defend strategy, a fast-exit strategy or a slow-exit strategy
Potentially attractive turnaround strategy options for a struggling business include
B. Selling off assets to raise cash for saving the rest of the business, revising the existing strategy, launching efforts to boost revenues, and/or initiating efforts to reduce costs
A harvesting strategy is best suited for which one of the following situations?
B. When the firm has a weak competitive position, its profit prospects are not good and rejuvenating the business would be costly or at best marginally profitable
In which of the following situations is a harvesting strategy an ill-advised strategic option?
C. When a company is the industry's low-cost leader and also the market share leader
The overriding objective of a harvesting strategy is to
E. Maximize short-term cash flows from operations
Which one of the following strategy options is not well-suited for a crisis-ridden business?
D. A stay-on-the-offensive strategy
Which of the following is not among the ten commandments for crafting successful business strategies?
D. Always pursue full vertical integration so as to have full command of the industry value chain
Which of the following is not among the ten commandments for crafting a successful business strategy?
B. Consider that attacking competitive strength usually results in bigger market share gains than attacking competitive weakness
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