A) are nearly always a more attractive strategic option than merger and acquisition strategies.
B) carry the substantial risk of raising a company's costs.
C) carry the substantial risk of making a company overly dependent on its suppliers.
D) increase a company's risk exposure to changing technology and/or changing buyer preferences.
E) involve farming out value chain activities presently performed in-house to outside specialists and strategic allies.
G) All of the above
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Backward vertical integration can produce a differentiation-based competitive advantage when performing activities internally contributes to a better-quality product/service offering,improves the caliber of customer service,or in other ways enhances the performance of a final product.Other potential advantages of backward integration include sparing a company the uncertainty of being dependent on suppliers for crucial components or support services and lessening a company's vulnerability to powerful suppliers inclined to raise prices at every opportunity.For backward integration to be a viable and profitable strategy,a company must be able to (1)achieve the same scale economies as outside suppliers and (2)match or beat suppliers' production efficiency with no decline in quality.Furthermore,the best potential for being able to reduce costs via a backward integration strategy exists in situations where suppliers have very large profit margins,where the item being supplied is a major cost component,and where the requisite technological skills are easily mastered or acquired.
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A) Leapfrogging competitors by being the first adopter of next-generation technologies or first to market with next-generation products
B) Offering an equally good or better product at a lower price
C) Blocking the avenues open to challengers
D) Attacking the competitive weakness of rivals
E) Capturing unoccupied or less contested territory by maneuvering around
G) C) and E)
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Being first to initiate a strategic move...View Answer
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A) Adopting or improving on good ideas of other companies (rivals or otherwise)
B) Deliberately attacking those market segments where key rivals make big profits
C) Launching a preemptive strike to capture a rare opportunity
D) Offering an equally good or better product at a lower price
E) Introducing new features or models to fill vacant niches in its overall product offering and better match the product offerings of key rivals
G) All of the above
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A) raises distribution costs and ignores channel conflicts.
B) provides a relative cost disadvantage over rivals.
C) offers lower margins resulting in higher selling prices to end users.
D) includes partnering rather than competing with existing distributors.
E) consists of a significant social media component that creates channel conflict with dealers.
G) A) and C)
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D
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A) expand a company's geographic coverage,extend its business into new product categories,or gain quick access to new technologies or other resources and capabilities.
B) weaken the bargaining power of either key suppliers or key customers.
C) reduce the company's vulnerability to industry driving forces.
D) facilitate a company's shift from one type of competitive strategy to another.
E) secure a higher credit rating and better access to additional financial capital.
G) None of the above
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A) extend a company's competitive and operating scope because its operations extend across more parts of the total industry value chain.
B) are one of the best strategic options for helping companies win the race for global market leadership.
C) are a cost-effective means of expanding a company's lineup of products and services.
D) are particularly effective in boosting a company's ability to expand into additional geographic markets,particularly the markets of foreign countries.
E) are a good strategy option for improving a company's supply chain management capabilities,pursuing efforts to remodel a company's value chain,achieving direct control over the costs of performing value chain activities,and gaining access to buyers.
G) D) and E)
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A) Excluding volume discounts or avoiding better financing terms in order to maintain current profitability levels
B) Avoiding a competitor's clients because their loyalty will not allow them to switch
C) Adhering to current product features and models to ensure that resources are not diverted toward unproductive efforts
D) Trimming the length of warranties to save money
E) Gaining product line exclusivity to force competitors to use other distributors
G) D) and E)
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The most common reasons companies enter ...View Answer
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A) Being able to control the wholesale/retail portion of the industry value chain
B) Having fewer disruptions in the delivery of the company's products to end users
C) Gaining better access to end users and better market visibility
D) Broadening the company's product line
E) Allowing the firm access to greater economies of scale
G) B) and E)
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A) Extending the company's business into new product categories
B) Leading the convergence of industries whose boundaries are being blurred by changing technologies and new market opportunities
C) Obtaining quick access to new technologies or complementary resources and capabilities
D) Expanding a company's geographic coverage
E) Suppressing a rival's breakthroughs in management or technology
G) B) and C)
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Merger and acquisition strategies are a ...View Answer
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Outsourcing forgoes attempts to perform ...View Answer
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A) are generally successful.
B) work well in cooperatively developing new technologies and new products but seldom work well in promoting greater supply chain efficiency.
C) work best when they are aimed at achieving a mutually beneficial competitive advantage for the allies.
D) stand a reasonable chance of helping a company reduce competitive disadvantage but very rarely form the basis of a durable competitive advantage over rivals.
E) are usually a company's best approach to building a distinctive competence.
G) C) and D)
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There are circumstances when other organ...View Answer
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A) these represent two highly effective ways for firms to achieve low-cost leadership and capture first-mover advantages.
B) these two strategies are a powerful means for companies to build loyalty and goodwill among customers that possess diverse needs and expectations.
C) they are quite effective in helping a company transfer the risks of threatening external developments to other companies.
D) working closely with outsiders is essential in developing new technologies and new products in virtually every industry.
E) cooperative arrangements with other companies are very helpful in racing against rivals to build a strong global presence and/or racing to seize opportunities on the frontiers of advancing technology.
G) A) and C)
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A) that partners will not divide profits from the alliance in an equitable manner.
B) becoming dependent on other companies for essential expertise and capabilities.
C) incurring excessive administrative expenses associated with engaging in collaborative efforts.
D) having to compromise the company's own priorities and strategies in reaching agreements with partners.
E) that strategic allies frequently become rivals in the marketplace.
G) C) and D)
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B
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A) producer of organic vegetables deciding to acquire a compost company.
B) footwear manufacturer developing its own-branded retail stores.
C) crude oil refiner purchasing an oil well drilling and exploration company.
D) hospital opening a nursing home for the aged.
E) maker of prescription drugs acquiring a chemical manufacturer.
G) A) and E)
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A) Vertical integration boosts a firm's capital investment in the industry,thus increasing business risk if the industry becomes unattractive later.
B) Integrating backward into parts and components manufacture can impair a company's operating flexibility when it comes to changing out the use of certain parts and components.
C) Vertical integration limits a company's ability to achieve greater product differentiation and to exercise direct control over the costs of performing value chain activities.
D) Forward or backward integration often calls for radically different skills and business capabilities than the firm possesses.
E) Vertical integration poses all kinds of capacity-matching problems.
G) A) and B)
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