1. Choosing which rivals to attack. Check all that apply.

a) Market leaders that are vulnerable.

b) Runner-up firms with weaknesses in areas where the challenger is strong.

c) Firms that have first mover advantage and are financially strong.

d) Enterprises that have management and line organization team members that resist change.

e) Struggling enterprises that are on the verge of going under.

f) Small local and regional firms with limited capabilities.

g) Small local and regional firms with expansive capabilities.

2. What Blue ocean strategy is? Check all that apply.

a) Seeks to gain a competitive advantage by abandoning efforts to beat out competitors in exiting markets by inventing a new market segment.

b) Discovering or inventing new demand thereby offering growth in revenue and profits.

c) An example of a blue ocean strategy is Cirque du Soleil.

d) Blue ocean strategies guarantee a companys long-term success.

3. Timing of a companys strategic moves. Check all that apply.

a) Being first to a strategic move can lead to a high payoff in the form of achieving a competitive advantage over industry rivals.

b) Being first is a guarantee for success.

c) Being first to market does come with disadvantages too.

d) Strategists must understand the advantages and disadvantages of having a first mover advantage.

4. The dating app Tinder is an example of achieving first-mover success. Check all that applies.

a) Easy to use.

b) Tinder was rolled out on college campuses.

c) High usage among social domains.

d) Tinder benefited from strong local network effects.

e) Tinders first mover advantage has kept others from entering the entering the mobile dating market.

f) Tinder does not have the highest commercial potential.

g) Tinders user base far outstrips the user base of rivals.

5. A vertically integrated firm is one that participates in multiple stages of an industrys value chain system.

a) Yes

b) No

6. Why do companies decide to enter foreign markets? Check all that apply.

a) To gain access to new customers.

b) To achieve lower costs through economies of scale, experience, and increased purchasing power.

c) To gain access to high-cost inputs of production.

d) To gain access to low-cost inputs of production.

e) To further exploit core competencies.

f) To gain access to resources and capabilities located in foreign markets.