Question

All of the following factors make an alliance "strategic," as opposed to just a convenient business arrangement, EXCEPT:

Multiple Choice

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.

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

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

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.

Answer 1

1 -> b) Strategic alliances are formed for the mutual benefit of alliance partners/companies. It may not give employee advancement opportunities

2.->C- When there are many ways to differentiate the product or service and many buyers perceive these differences as having value. Each company can have a different differentiation.

3 ->d - In outsourcing, you let go of control over certain activities.

4.-> c and e - Both C & E give rise to a first-mover advantage i.e. someone who innovated first can put barriers to entry using patents and even if companies enter late they will have problems with buyers loyalty towards pioneer. If only one option is to be selected, then go for C.