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Strategic alliances are more likely to be long-lasting when


A) they involve collaboration with suppliers or distribution allies or when both parties conclude that continued collaboration is in their mutual interests.
B) the alliance involves partners based in countries with distinctly different cultures and consumer buying habits and preferences.
C) both partners are experienced with strategic alliances and routinely enter into collaborative agreements with firms in peripheral industries.
D) the alliance involves joining forces in R&D to develop new technologies cheaper than a company could develop the technology on its own.
E) each partner has considerable resource weaknesses in the marketplace.

F) A) and D)
G) All of the above

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A blue ocean strategy


A) is an offensive attack used by a market leader to steal customers away from unsuspecting smaller rivals.
B) involves a preemptive strike to secure an advantageous position in a fast-growing market segment.
C) works best when a company is the industry's low-cost leader.
D) offers growth in revenues and profits by discovering or inventing a new industry or distinct market segment that allows a company to create and capture altogether new demand.
E) involves the use of highly creative, never-used-before strategic moves to attack the competitive weaknesses of rivals.

F) None of the above
G) A) and E)

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Once a company has decided to employ one of the five basic competitive strategies, then it must also consider such additional strategic choices as


A) whether and when to go on the offensive and initiate aggressive strategic moves to improve the company's market position.
B) whether to outsource certain value chain activities or perform them in-house.
C) whether to form strategic alliances and collaborative partnerships to add to its accumulation of resources and competitive capabilities.
D) whether to integrate forward or backward into more stages of the industry value chain.
E) All of the above.

F) C) and D)
G) A) and C)

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Market conditions and factors that tend not to favor first movers include


A) growth in demand that depends on the development of complementary products or services that are not currently available and new industry infrastructure that is needed before buyer demand can surge.
B) quick market penetration and strong loyalty among first-time customers.
C) buyer behavior that is readily attracted to new technology or product features.
D) conditions that make imitation difficult and absolute cost advantages that accrue to those who make early commitments to new technologies, components, or distribution channels.
E) All of the above.

F) None of the above
G) A) and B)

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The Achilles' heel (or biggest danger/pitfall) of relying heavily on alliances and cooperative strategies is


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.

F) A) and B)
G) A) and C)

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The reasons firms enter into strategic alliances is to


A) expedite the development of new technologies.
B) overcome deficits in their operation.
C) improve supply chain efficiency.
D) acquire or improve market access.
E) All of these.

F) A) and B)
G) B) and C)

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Which of the following is not an example of a defensive move to protect a company's market position and restrict a challenger's options for initiating competitive attack?


A) Granting volume discounts or better financing terms to dealers/distributors and providing discount coupons to buyers to help discourage them from experimenting with other suppliers/brands
B) Signaling challengers that retaliation is likely in the event they launch an attack
C) Publicly committing the company to a policy of matching a competitors' terms or prices
D) Maintaining a war chest of cash and marketable securities
E) Challenging struggling runner-up firms that are on the verge of going under

F) B) and C)
G) A) and E)

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Which of the following is not among the principal offensive strategy options that a company can employ?


A) Leapfrogging competitors by being the first adopter of next-generation technologies or being 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

F) D) and E)
G) A) and B)

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The big risk of employing an outsourcing strategy is


A) causing the company to become partially integrated instead of being fully integrated.
B) hollowing out a firm's own capabilities and losing touch with activities and expertise that contribute fundamentally to the firm's competitiveness and market success.
C) hurting a company's R&D capability.
D) putting the company in the position of being a late mover instead of an early mover.
E) increasing the firm's risk exposure to both supply chain management failures and shifts in the composition of the industry value chain.

F) A) and D)
G) A) and B)

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