1. Why would a company pursue an offensive strategy and what key options exist? 2. Is...
1. Why would a company pursue an offensive strategy and what key options exist?
2. Is a Blue Ocean strategy good for most organizations? Why or why not?
3. Is a first-mover advantage always good for most organizations? Why or why not?
4. What are the advantages of outsourcing key value chain activities for organizations?
Homework Answers
Ans. To Q1:
The company would pursue an offensive strategy because of the following reasons:
- Avoid risk and competition. Company would always want to be profitable and so will work to have long secured growth unaffected by various factors. So if the company has the right strategy and work plan on ground it may go for all offensive strategy. However, offensive strategy requires a lot of investment and financing which is mostly possible for bigger companies.
- Easy spread into new geographic locations and avoid competition: The company by adopting offensive strategy can capitalize on the new market for example by acquisition of the competing company which has potentials to be challenging in future so by acquiring these companies the companies can safely do business in newer markets and enjoy the fruits of already established relation with customers of acquired company.
- Fast growth and occupying the market position first: Companies do go for offensive strategy as well to first occupy the market position so that any new entrant would not face an immediate competition to it and it can with speed establish the relation with its consumer base.
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