Question 1

A differentiator has the advantage of:

Accepted Answer

A)  selling on non-price factors, such as design or customer service. 
B)  producing a large product variety without a large cost penalty. 
C)  producing a basic offering that is relatively inexpensive to produce and deliver. 
D)  being able to respond to demands for deep price discounts from powerful buyers and still make money. 
E)  being able to initiate a price war in order to grow volume and drive its weaker rivals out of the industry. 
A)  selling on non-price factors, such as design or customer service. 
B)  producing a large product variety without a large cost penalty. 
C)  producing a basic offering that is relatively inexpensive to produce and deliver. 
D)  being able to respond to demands for deep price discounts from powerful buyers and still make money. 
E)  being able to initiate a price war in order to grow volume and drive its weaker rivals out of the industry.

Question 2

The term value innovation is used to describe:

Accepted Answer

A)  the way a company decides to group customers based on important differences in their needs to gain a competitive advantage. 
B)  a business's overall competitive theme, the way it positions itself in the marketplace to gain a competitive advantage, and the different positioning strategies that can be used in different industry settings. 
C)  what happens when innovation pushes out the efficiency frontier in an industry, allowing for greater value to be offered through superior differentiation at a lower cost than was previously thought possible. 
D)  what happens when a company decides to ignore different segments, and produce a standardized product for the average consumer. 
E)  what happens when a company decides to serve many segments, or even the entire market, producing different offerings for different segments. 
A)  the way a company decides to group customers based on important differences in their needs to gain a competitive advantage. 
B)  a business's overall competitive theme, the way it positions itself in the marketplace to gain a competitive advantage, and the different positioning strategies that can be used in different industry settings. 
C)  what happens when innovation pushes out the efficiency frontier in an industry, allowing for greater value to be offered through superior differentiation at a lower cost than was previously thought possible. 
D)  what happens when a company decides to ignore different segments, and produce a standardized product for the average consumer. 
E)  what happens when a company decides to serve many segments, or even the entire market, producing different offerings for different segments.

Question 3

A company pursuing a focus strategy:

Accepted Answer

A)  attempts to serve all market segments. 
B)  concentrates on building market share in one market segment. 
C)  typically has more resources at its disposal than a differentiator does. 
D)  has a greater impact on cost and revenue. 
E)  produce different offerings for different segments. 
A)  attempts to serve all market segments. 
B)  concentrates on building market share in one market segment. 
C)  typically has more resources at its disposal than a differentiator does. 
D)  has a greater impact on cost and revenue. 
E)  produce different offerings for different segments.

Question 4

The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy is in the:

Accepted Answer

A)  standardized market price. 
B)  industry life-cycle stage. 
C)  degree of market segmentation. 
D)  age of the market. 
E)  market trajectory. 
A)  standardized market price. 
B)  industry life-cycle stage. 
C)  degree of market segmentation. 
D)  age of the market. 
E)  market trajectory.

Question 5

When a company offers a wide variety of products at lower prices than its rivals, it is most likely pursuing a(n) which of the following strategies?

Accepted Answer

A)  low-cost 
B)  differentiation 
C)  focus 
D)  exit 
E)  divestment 
A)  low-cost 
B)  differentiation 
C)  focus 
D)  exit 
E)  divestment

Question 6

Which of the following is a functional-level strategy designed to improve differentiation?

Accepted Answer

A)  Designing products that can be produced and delivered at as low a cost as possible 
B)  Standardization of the product offering and marketing mix to different market segments 
C)  Hiring and employee development strategies designed to ensure that employees act in a manner that is consistent with the image that the company is trying to project to the world 
D)  Initiation of a price war to grow volume and drive its weaker rivals out of the industry 
E)  Products that have lower prices to allow a company to erect an economic moat around its business that thwarts higher-cost rivals out 
A)  Designing products that can be produced and delivered at as low a cost as possible 
B)  Standardization of the product offering and marketing mix to different market segments 
C)  Hiring and employee development strategies designed to ensure that employees act in a manner that is consistent with the image that the company is trying to project to the world 
D)  Initiation of a price war to grow volume and drive its weaker rivals out of the industry 
E)  Products that have lower prices to allow a company to erect an economic moat around its business that thwarts higher-cost rivals out

Question 7

Differentiation allows a company to:

Accepted Answer

A)  respond to demands of deep price demands from powerful buyers and still make money. 
B)  lower its cost structure. 
C)  charge a premium price for its good or service, should it choose to do so. 
D)  charge low prices and still make profits. 
E)  initiate a price war to grow volume and drive its weaker rivals out of the industry. 
A)  respond to demands of deep price demands from powerful buyers and still make money. 
B)  lower its cost structure. 
C)  charge a premium price for its good or service, should it choose to do so. 
D)  charge low prices and still make profits. 
E)  initiate a price war to grow volume and drive its weaker rivals out of the industry.

Question 8

When a company seeks to carve out a unique market space for themselves through value innovation, they must think about how a company might redefine its market and craft a new business-level strategy. What are four areas that a company should focus on finding new strategies? What questions should be asked for each area? Choose a company that has created market space through value innovation and trace how they addressed these four areas to redefine itself.

Accepted Answer

Successful enterprises compete different

Question 9

A company that already has a low-cost structure must relinquish much differentiation in its product offering to achieve additional cost reductions.

Accepted Answer

A) True 
 B)False

Question 10

Standardization describes what happens when innovation pushes out the efficiency frontier in an industry, allowing for greater value to be offered through superior differentiation at a lower cost than was previously thought possible.

Accepted Answer

A) True 
 B)False

Question 11

A market segment consists of a group of:

Accepted Answer

A)  similar products. 
B)  customers who have similar needs. 
C)  products that are considered obsolete. 
D)  diverse products produced by the same manufacturer. 
E)  customers who have diverse needs. 
A)  similar products. 
B)  customers who have similar needs. 
C)  products that are considered obsolete. 
D)  diverse products produced by the same manufacturer. 
E)  customers who have diverse needs.

Question 12

Market segmentation refers to the process of subdividing a market into clearly identifiable groups of customers with similar needs, desires, and demand characteristics.

Accepted Answer

A) True 
 B)False

Question 13

The production of more product variety without a large cost penalty is known as:

Accepted Answer

A)  market concentration. 
B)  market segmentation. 
C)  focus differentiation. 
D)  mass production. 
E)  mass customization. 
A)  market concentration. 
B)  market segmentation. 
C)  focus differentiation. 
D)  mass production. 
E)  mass customization.

Question 14

Lilly's Beauty Company sells general haircare products such as shampoo, conditioner, and hairspray. The company does not sell new or customized products to meet the specific needs of certain groups of people. Which of the following approaches is illustrated in this scenario?

Accepted Answer

A)  Standardization strategy 
B)  Focus strategy 
C)  Medium market segmentation strategy 
D)  High market segmentation strategy 
E)  Focus market segmentation strategy 
A)  Standardization strategy 
B)  Focus strategy 
C)  Medium market segmentation strategy 
D)  High market segmentation strategy 
E)  Focus market segmentation strategy

A differentiator has the advantage of:

The term value innovation is used to describe:

A company pursuing a focus strategy:

The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy is in the:

When a company offers a wide variety of products at lower prices than its rivals, it is most likely pursuing a(n) which of the following strategies?

Which of the following is a functional-level strategy designed to improve differentiation?

Differentiation allows a company to:

A company that already has a low-cost structure must relinquish much differentiation in its product offering to achieve additional cost reductions.

Standardization describes what happens when innovation pushes out the efficiency frontier in an industry, allowing for greater value to be offered through superior differentiation at a lower cost than was previously thought possible.

A market segment consists of a group of:

Market segmentation refers to the process of subdividing a market into clearly identifiable groups of customers with similar needs, desires, and demand characteristics.

The production of more product variety without a large cost penalty is known as:

Lilly's Beauty Company sells general haircare products such as shampoo, conditioner, and hairspray. The company does not sell new or customized products to meet the specific needs of certain groups of people. Which of the following approaches is illustrated in this scenario?

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: the Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Governance, Social Responsibility, and Ethics

Implementing Strategy Through Organization

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Exam 5: Business-Level Strategy

A differentiator has the advantage of:

The term value innovation is used to describe:

A company pursuing a focus strategy:

The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy is in the:

When a company offers a wide variety of products at lower prices than its rivals, it is most likely pursuing a(n) which of the following strategies?

Which of the following is a functional-level strategy designed to improve differentiation?

Differentiation allows a company to:

A company that already has a low-cost structure must relinquish much differentiation in its product offering to achieve additional cost reductions.

Standardization describes what happens when innovation pushes out the efficiency frontier in an industry, allowing for greater value to be offered through superior differentiation at a lower cost than was previously thought possible.

A market segment consists of a group of:

Market segmentation refers to the process of subdividing a market into clearly identifiable groups of customers with similar needs, desires, and demand characteristics.

The production of more product variety without a large cost penalty is known as:

Lilly's Beauty Company sells general haircare products such as shampoo, conditioner, and hairspray. The company does not sell new or customized products to meet the specific needs of certain groups of people. Which of the following approaches is illustrated in this scenario?

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: the Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Governance, Social Responsibility, and Ethics

Implementing Strategy Through Organization

Filters