Question

According to strategy expert Richard D'Aveni, the actions taken by Swatch in the global watch industry illustrate hypercompetitive dynamic maneuvering in which arena?

A) cost/quality
B) timing and know-how
C) entry barriers
D) deep pockets
E) Olympics

Answer 1

Swatch's actions in the global watch industry represent hypercompetitive dynamic maneuvering in the cost/quality arena, consistent with A) cost/quality.

Step-by-step explanation:

According to strategy expert Richard D'Aveni, the actions taken by Swatch in the global watch industry illustrate hypercompetitive dynamic maneuvering in the cost/quality arena. Swatch, known for its well-established reputation for slashing prices in response to new entry, falls into category (A). They demonstrated a strategic approach that involves aggressive pricing and high-quality products to gain competitive advantage, which can be considered evidence of serious competition as firms in an industry engage in dynamic and often disruptive tactics to outperform rivals.