1. All of the following factors make an alliance "strategic," as opposed to just a convenient business arrangement, EXCEPT:
a strategic alliance increases the bargaining power of alliance members over suppliers or buyers.
a strategic alliance enables greater opportunities for employee advancement.
a strategic alliance mitigates a significant risk to a company's business.
a strategic alliance helps build, sustain, or enhance a core competence or competitive advantage.
a strategic alliance helps open up important new market opportunities.
2. A differentiation strategy works best in which of the following market circumstances?
When buyers incur low costs in switching to rival brands
When most competitors are resorting to clever advertising to try to set their product offerings apart
When there are many ways to differentiate the product or service that have value to buyers
When buyers have a low degree of bargaining power and purchase the product frequently
When new and improved products are introduced frequently
3. When is outsourcing NOT beneficial?
When it allows a company to concentrate on its core business
When it reduces the company's risk exposure to changing technology and/or buyer preferences
When it improves organizational flexibility and speeds time to market
When internal control over a particular activity is deemed essential
When an activity can be performed better or more cheaply by outside specialists
3. A late-mover advantage does NOT arise when:
rapid market evolution gives fast followers the opening to leapfrog a first mover's products with more attractive next-version products.
market uncertainties make it difficult to ascertain what will eventually succeed.
property rights protections in the form of patents, copyrights, and trademarks prevent the ready imitation of initial moves.
products of an innovator are simple, do not need a high customer understanding, and are easy to penetrate the market with.
pioneering helps build a firm's reputation with buyers and creates brand loyalty.