Exam 18: Creating Competitive Advantage

Most companies prefer to compete against strong competitors.

To remain number one,leading firms can take any of three actions.First,they can find ways to expand total demand.Second,they can protect their current market share through good defensive and offensive actions.Third,they can ________.

A company may want to avoid trying to "destroy" a close competitor.

If a company gains increased market share,does it automatically improve profitability?

The goal of a "red ocean strategy" is to make competition irrelevant.

Rather than competing head to head with established competitors,many companies seek out unoccupied positions in uncontested market spaces.They try to create products and services for which there are no direct competitors.This is called a ________.

Most competitors in the music download industry see Apple's iTunes Music Store as a ________ because they created a closed system with mass appeal.

By trying to be good at all of the value disciplines,a company usually ends up being best at none.

The challenger must choose its opponents carefully and have a clearly defined and attainable objective.

An industry often contains "good" and "bad" competitors.Good competitors ________

In fact,challengers seldom become market leaders by imitating and improving on the ideas of pioneering processors.