Which of the following is true regarding a reactive strategy?
A)It is based on extensive customer and competitive knowledge.
B)It seeks to gain a competitive advantage without direct confrontation.
C)It refers to making competitive moves from an internal perspective with no real market knowledge.
D)It leverages a knowledge advantage with respect to customers and competitors.
E)It is an overreaction to competitor moves due to limited competitor knowledge.

Question

Quizplus · Accepted Answer

A reactive strategy is one where a company responds to competitors' moves rather than making the first move. However, if the response is an overreaction, it can lead to a disadvantage for the company. Therefore, option E is correct as it states that a reactive strategy can be an overreaction due to limited competitor knowledge.

Which of the Following Is True Regarding a Reactive Strategy