My answers to chapter 6 after correction

Q1. Wat industry forces might cause a propitious niche to disappear?

Ans; propitious niche can disappear if the external environment and the industry
changes. It happens when market get smaller because of factors beyond the control
of company. A small market for product and services causes to be narrowly
demanded.The strategic business unit through its own efforts, not only fills the demand, but

actually causes the market to expand.

Market development can also force a business strategic unit to ignore a niche, when the demand
of a product is high in market where supply is low.
2. Is it possible for a company or business unit to follow a cost
leadership and a differentiation strategy simultaneously? Why or
why not?
Ans; Yes, it is possible for a company to use both strategies simultaneously.
Following cost leader ship Strategy Company can purchase cheap raw
material which reduces cost and can follow diffentiation strategy by including
technological innovations in its operations. Some examples are TOYOTA, IBM
etc. But it is not correct for every business if these strategies are not
properly use by business then business could face failure.
3. Is it possible for a company to have a sustainable competitive
advantage when its industry becomes hyper-competitive?
Ans; it is becoming very difficult to sustain a competitive advantage for long
time in hyper competitive. Market stability is threatened by short product life
cycles, new technologies, entry of un expected entrants. The real
sustainability doesnt lies in one competitive advantage of one product line,
but it lies in ability to learn and bring changes according to situation.
4. What are the advantages and disadvantages of being a first
mover in an industry? Give some examples of first movers and late
mover firms?
Ans: advantages of first movers they are able to establish long lasting
impression or brand good will, more time to redefine their processes and
perfect their products and services, have better ability to control their
resources. Disadvantages are they are bearing economic burden while
developing new market, late movers have better technology then first
movers. Examples of first movers are coca cola and late movers examples
are Facebook and Google.

5: Why are strategic alliances temporary?

Ans: The strategic alliances are formed to achieve a target most alliances
are temporary due to following reasons if the objectives are ahieved,when

the indiduval egos dominated over group, conflict arises among partners
when objective of alliances are not achieved.