Strategic Offensives
This is when a company takes aggressive action to improve its market position
What is a strategic offensive?
This type of offensive strategy involves launching initiatives to grab market share from rivals by targeting their strongest segments directly
What is a frontal assault?
This occurs when a company expands its operations into activities previously performed by its suppliers or distributors
What is vertical integration?
This is the practice of contracting certain value chain activities to external firms rather than performing them internally
What is outsourcing?
This is a formal agreement between separate companies to work cooperatively toward a shared objective, often sharing resources and knowledge
What is a strategic alliance?
The key principle of offensive strategy is using a company’s strengths against it is this
What is a competitor's weakness?
This occurs when a company gains an advantage by being the first to secure key resources, locations, or partnerships before competitors can access them
What is preemptive positioning?
Moving upstream into supplier activities, such as producing raw materials internally, is called this type of integration
What is backward integration?
Companies often outsource activities like payroll, IT support, or customer service because these are considered non-core parts of the firm’s ______ chain
What is Value chain?
This is when two firms combine into one entity with greater integration and full ownership
What is a merger?
This strategy focuses on creating a brand new market space where competition does not exist
What is a blue-ocean strategy?
This occurs when a company expands its operations backward into activities previously performed by its suppliers
What is backward integration?
This company utilized vertical integration to strengthen their value chain
Who is Zara?
One major risk of outsourcing is losing this type of organizational asset, especially when key processes are handled by outside firms
What is Intellectual property?
This the major risk where a partner gains access to your confidential knowledge and may become a competitor
What is loss of trade secrets?
This type of offensive strategy involves directly challenging competitors in existing markets through aggressive moves like price cutting or rapid innovation
What is a Red Ocean offensive strategy?
Actions designed to lower the risk of being attacked and weaken the impact of any attack that occurs
What is a defensive move
Moving downstream into distribution or retail *(opening company-owned stores) is what kind of integration?
What is Forward Integration?
This theory explains that firms should outsource activities when external suppliers can perform them at lower total cost, including production and coordination expenses
What is transaction cost economics?
This is a special type of strategic alliance where companies create a new jointly owned company
What is a joint venture?
This aggressive tactic involves quick competitive attacks designed to weaken rivals before they can respond
What is a hit and run tactic?
Fill in the blank: A first mover advantage establishes brand ____
What is recognition?
Fill in the blank: ___ flexibility and ___ investment costs are disadvantages of vertical integration
What is less and higher?
This type of strategic decision determines what activities a firm performs internally versus externally
What is a boundary decision?
This type of alliance is more successful because partners make stronger-commitments to each other
What is an equity-based alliance?