If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ strategy.
A) counteroffensive defense
B) mobile defense
C) flank defense
D) preemptive defense
E) contraction defense

Question

Quizplus · Accepted Answer

Microsoft is employing a preemptive defense strategy by announcing plans for a new-product development, which deters smaller firms from entering the same market and instead encourages them to focus on other areas. This allows Microsoft to gain a competitive advantage without having to engage in head-to-head competition.

If Microsoft Announces Plans for a New-Product Development, Smaller Firms