Question

Which of the following is a good type of rival for an offensive-minded company to target?

a. Companies pursuing a broad low-cost provider strategy
b. Struggling enterprises that are on the verge of going under
c. Small local and regional firms pursuing a focused low-cost or a focused differentiation strategy, even if they possess competitively valuable resources and capabilities
d. Firms pursuing a best-cost provider strategy
e. Companies that are pursuing a blue ocean strategy and thus are vulnerable to a tidal wave offensive

Answer 1

An offensive-minded company should target rivals pursuing a best-cost provider strategy because these firms blend low cost with differentiation, potentially leaving them vulnerable to focused aggressive strategies.

Step-by-step explanation:

A good type of rival for an offensive-minded company to target would be firms pursuing a best-cost provider strategy. These companies are trying to blend low cost with differentiation, and this positioning might leave them vulnerable to a focused attack from a company that aims to excel primarily in offense (i.e., aggressive pricing, marketing, and growth strategies). Targeting a best-cost provider may allow the offensive company to exploit any inconsistencies or weaknesses in the rival's combined approach. On the other hand, companies with a strong differentiation strategy might be more resilient due to their unique products or services that can command brand loyalty and premium pricing, making it harder for offensive companies to lure away customers.

For an offensive-minded company to successfully disrupt the market and gain a competitive edge, it must evaluate potential targets based on how well it can leverage its offensive strategies—such as undercutting prices, rapid scaling, or aggressive marketing—against the business models and market positions of its rivals.