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) preemptive defense
B) counteroffensive defense
C) mobile defense
D) flank defense
E) contraction defense

Question

Quizplus · Accepted Answer

Microsoft is taking preemptive action by announcing their plans for new-product development, which may deter smaller firms from entering the same market and competing head-to-head with Microsoft. Preemptive defense involves taking strategic actions to prevent or deter competitors from entering a market or competing in a certain way.

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