Although It Might Seem That the Market Leader Has the Most

question 122

Multiple Choice

Although it might seem that the market leader has the most going for it, challengers often have what some strategists call a(n) ________. The challenger observes what has made the leader successful and improves upon it.

• A) "marketing myopia"
• B) "second mover advantage"
• C) "absolute advantage"
• D) "blue ocean strategy"
• E) "red ocean strategy"

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Definitions:

Desired Rate

Often refers to the target or preferred rate of return on investment or progress in a specific area, such as growth or interest.

Present Value Factor

A numerical figure used to calculate the present value of a future amount of money or stream of cash flows given a specified rate of return.

Capital Expenditure

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.

Annual Cash Flows

The total amount of money being transferred into and out of a business, especially analyzed on a yearly basis.