Because When to Make a Strategic Move Can Be Just

question 63

Multiple Choice

Because when to make a strategic move can be just as important as what move to make,a company's best option with respect to timing is

• A) to be the first mover.
• B) to be a fast follower.
• C) to be a late mover (because it is cheaper and easier to imitate the successful moves of the leaders and moving late allows a company to avoid the mistakes and costs associated with trying to be a pioneer-first-mover disadvantages usually overwhelm first-mover advantages).
• D) to be the last-mover-playing catch-up is usually fairly easily and nearly always much cheaper than any other option.
• E) to carefully weigh the first-mover advantages against the first-mover disadvantages and act accordingly.

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Definitions:

Low-Cost Leadership

A strategy where a business aims to become the least costly producer in its industry while maintaining sufficient levels of quality.

Product Differentiation

The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Total Assets Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue; calculated by dividing sales revenue by total assets.

Sales

The transactions involved in selling goods or services in return for money or other compensation.