Ch.6 - Supporting The Business-Level Strategy: Competitive and Cooperative Moves

Question 1

Making the initial move into a market allows a company to establish a dominant position that other companies struggle to overcome.

cannot be sure that customers will embrace its offering, making a first

Answer 1

First-mover Advantage

Question 2

Conflicts with, and threatens to replace, traditional approaches to competing within an industry.

Answer 2

Disruptive Innovation

Question 3

Small position that a company intentionally establishes within a market in which it does not yet compete.

Answer 3

Foothold

Question 4

Creating a new, untapped market rather than competing with rivals in an existing market.

Answer 4

Blue Ocean Strategy

Question 5

Creates new markets by using whatever materials and resources happen to be available as the inputs into a creative process.

Answer 5

Bricolage

Question 6

• Speed of response
• Multipoint Competition
• Mutual forbearance
• Responding to disruptive innovation
• Fighting brands

Answer 6

Responding to Rivals’ Moves

Question 7

• Awareness
• Motivation
• Capability

The A-M-C Framework

Answer 7

3 factors influence response

Question 8

Situation where a company faces the same rival in more than one market.

Answer 8

Multipoint Competition

Question 9

Situation where rivals do not act aggressively because each recognizes that the other can retaliate in multiple markets.

Answer 9

Mutual forbearance

Question 10

Lower-end brand that a company introduces to try to protect the company’s market share without damaging the company’s existing brands.

Answer 10

Fighting Brand

Question 10

• Choose to focus on their traditional
  modes of business while ignoring the
  disruption.
• Counter the challenge by attacking
  along a different dimension.
• Match the competitor’s move.

Answer 10

3 ways to respond to disruptive innovation

Question 11

• Joint ventures
• Strategic Alliance
• Colocation
• Co-opetition

Answer 11

4 types of Cooperative Moves

Question 12

A cooperative arrangement that involves two or more organizations each contributing to the creating of a new entity.

Answer 12

Joint Venture

Question 13

Cooperative arrangement between two or more that does not involve the creation of a new entity.

Answer 13

Strategic Alliance

Question 14

Goods and services offered under different brands are located very close to each other.

Answer 14

Colocation

Question 15

Blending of competition and cooperation between two companies.

Answer 15

Co-opetition

Question 16

refers to a situation that involves very rapid and unpredicatbale moves and countermoves that can undermine competitive advantages

Answer 16

hypercompetition