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 ________ defense strategy.
A) preemptive
B) counteroffensive
C) mobile
D) flank
E) contraction

Question

Quizplus · Accepted Answer

Microsoft is employing a preemptive defense strategy by announcing plans for a new-product development in order to deter smaller firms from entering the same market and potentially competing head-to-head. By doing so, Microsoft is acting preemptively to protect their market position.

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