Mgt 487 Missouri State Test 4

Front 1

What are some competitive moves?
(BDFBB)

Back 1

-Being a first-mover
-Disruptive Innovations
-Foothold
-Blue Ocean Strategy
-Bricolage

Front 2

First Mover
(Advantage and Characteristics)

Back 2

*An initial entrant into a market.

-Advantage: The initial move into a market allows a firm to establish a dominant position that other firms struggle to overcome.

-Cannot be sure that customers will embrace its offerings, making it very risky.
-Must be willing to commit sufficient resources to follow through on their pioneering efforts.
-Must ask if the move is likely to provide a sustainable competitive advantage.

Front 3

Disruptive innovations
(Are they overnight sensations?)

Back 3

*An improvement that conflicts with, and threatens to replace, traditional approaches to competing within an industry.

-Most disruptive innovations are NOT overnight sensations.

Front 4

Foothold

Back 4

*A small position that a firm intentionally establishes within a market in which it does not yet compete.

Front 5

Blue Ocean Strategy
(Red Oceans?)

Back 5

*Read Oceans: -Companies try to outperform rivals to grab bigger slices of existing demand. -Space gets crowded. - Growth prospects shrink. -Products become commoditized.

*(BOS) *Creating a new, untapped market rather than competing with rivals in an existing market *Space is uncontested. *Competition Irrelevant. *New Demand Invented and captured. *Customers enjoy leap in value *costs are streamlined. *profits and growth increase *brand equity lasts for decades

Front 6

Logic behind Blue Ocean Strategy

Back 6

*It’s not about technology innovation. -Often the underlying technology already exists. -BOS links it to what buyers value.

*Distant waters aren’t necessary for BOS: Most BOS is created from within.

*Never use competition as a benchmark.

*Reduce costs while also offering customers more value.

Front 7

Bricolage

Back 7

*Using whatever materials and resources are available as the inputs into a creative process.

Front 8

Competitive tension between rivals
(three factors)

Back 8

*Three factors determine the likelihood that a firm will respond to a competitive move:

-Awareness
-Motivation
-Capability

Front 9

Competitive situations (3)

Back 9

-Multipoint competition

-Mutual forebearance

-Fighting brand

Front 10

Multipoint competition
(Competitive situations)

Back 10

*A situation in which a firm faces the same rival in more than one market

Front 11

Mutual forebearance
(Competitive situations)

Back 11

*A situation in which rivals do not act aggressively because each recognizes that the other can retaliate in multiple markets.

Front 12

Fighting brand
(Competitive situations)

Back 12

*A lower end brand that a firm introduces to try to protect the firm’s market share without damaging the firm’s existing brands.

Front 13

Cooperative moves (4)

Back 13

-Joint venture

-Strategic alliance

-Colocation

-Co-opetition

Front 14

Joint Venture
(Cooperative moves)

Back 14

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

Front 15

Strategic alliance
(Cooperative moves)

Back 15

*A cooperative arrangement between two or more organizations that does not involve the creation of a new entity.

Front 16

Colocation
(Cooperative moves)

Back 16

*When goods and services offered under different brands are located close to one another.

Front 17

Co-opetition
(Cooperative moves)

Back 17

*A blending of competition and cooperation between two firms.