Financial ManagementQuestion 5556 of 217
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9. The strategy in which the company wants to keep ahead and reap the first mover advantages in the industry, is known as:

Options

AAdaptive strategy
BReactive strategy
CProactive strategy
DResponsive strategy
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Correct Answer

Option CProactive strategy

All Options:

  • AAdaptive strategy
  • BReactive strategy
  • CProactive strategy
  • DResponsive strategy

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Detailed Solution & Explanation

Correct Answer: Option **C** Explanation: In strategic management, business strategies can be proactive or reactive.
* **Proactive Strategy:** This strategy involves designing and planning actions in advance of future events. It is focused on anticipating market trends, seeking first-mover advantages, and actively shaping the competitive landscape. A company adopting a proactive strategy aims to stay ahead of the competition and exploit new opportunities early.
* **Reactive Strategy:** This strategy is a defensive response to competitive moves, changing customer choices, and market developments. A reactive strategy occurs when a company reacts to unexpected events and changes after they occur.
Case Scenario 2 states that Quick N Safe Logistics has the philosophy "to bring the best user experience to its customers through timely and safe delivery of goods." Under this philosophy, "it desires to keep ahead and reap the benefits of first mover advantages in the industry."
Because the company is taking initiatives to capture first-mover advantages and actively lead the market, this strategy is a **Proactive strategy**.
Hence, **Option C** is the correct answer.

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