Question 1

Differentiation can help a company to grow overall demand and capture market share from its rivals.

Accepted Answer

A) True 
 B)False

Question 2

Define the generic business-level strategies companies pursue.

Accepted Answer

There are four generic business-level st

Question 3

A product's appeal to customers' desires cannot be considered a source of differentiation.

Accepted Answer

A) True 
 B)False

Question 4

A firm's business model should contain three components: what is to be satisfied,who is to be satisfied,and how they will be satisfied.

Accepted Answer

A) True 
 B)False

Question 5

A differentiation strategy is based on creating a product that customers perceive as being:

Accepted Answer

A) the same as other available products. 
B) distinct from other available products. 
C) the least costly product in the industry. 
D) the most costly product in the industry. 
E) cheaper, but inferior to the available products. 
A) the same as other available products. 
B) distinct from other available products. 
C) the least costly product in the industry. 
D) the most costly product in the industry. 
E) cheaper, but inferior to the available products.

Question 6

Which of the following generic competitive strategies is a producer of commodity steel most likely to pursue?

Accepted Answer

A) Exclusive dealing 
B) Broad differentiation 
C) Focus differentiation 
D) Broad low-cost 
E) Horizontal integration 
A) Exclusive dealing 
B) Broad differentiation 
C) Focus differentiation 
D) Broad low-cost 
E) Horizontal integration

Question 7

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by initiating price wars and driving weaker rivals out of the industry.

Accepted Answer

A) True 
 B)False

Question 8

Differentiation leads to high brand loyalty,which in turn significantly increases the threat of new firms entering the industry.

Accepted Answer

A) True 
 B)False

Question 9

Yankee Candle Company offers customers candles that burn for 50-60 hours,much longer than most department store candle brands.Therefore,customers are willing to pay a higher price for these candles.Which of the following strategies is Yankee Candle Company following?

Accepted Answer

A) Cost leadership 
B) Rapid growth 
C) Market segmentation 
D) Differentiation 
E) Stuck in the middle 
A) Cost leadership 
B) Rapid growth 
C) Market segmentation 
D) Differentiation 
E) Stuck in the middle

Question 10

Companies with a differentiation advantage tend to charge a lower price for their products.

Accepted Answer

A) True 
 B)False

Question 11

The efficiency frontier is not static; it is continually being pushed outwards by the efforts of managers to improve their firm's performance through innovation.

Accepted Answer

A) True 
 B)False

Question 12

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 13

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 14

Delta Airlines used to advertise its high-quality air travel service by saying it flew "anywhere,anytime." What generic strategy is represented by this advertisement?

Accepted Answer

A) Broad low-cost 
B) Broad differentiation 
C) Vertical integration 
D) Right-time marketing 
E) Rapid growth 
A) Broad low-cost 
B) Broad differentiation 
C) Vertical integration 
D) Right-time marketing 
E) Rapid growth

Question 15

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by:

Accepted Answer

A) redefining their product offering through value innovation and creating a new market space. 
B) initiating a price war in order to grow volume and drive its weaker rivals out of the industry. 
C) developing brand loyalty to protect them from intense price rivalry within their industry. 
D) charging premium prices for their goods or services. 
E) adopting lean production and flexible manufacturing technologies. 
A) redefining their product offering through value innovation and creating a new market space. 
B) initiating a price war in order to grow volume and drive its weaker rivals out of the industry. 
C) developing brand loyalty to protect them from intense price rivalry within their industry. 
D) charging premium prices for their goods or services. 
E) adopting lean production and flexible manufacturing technologies.

Question 16

One of the great advantages of successful value innovation is that it can catch rivals off guard and make it difficult for them to catch up.

Accepted Answer

A) True 
 B)False

Question 17

When a company targets a certain segment or niche,and customizes its offering to the needs of that particular segment through the addition of features and functions,the company is pursuing a _____ strategy.

Accepted Answer

A) broad low-cost 
B) broad differentiation 
C) product substitution 
D) focus low-cost 
E) focus differentiation 
A) broad low-cost 
B) broad differentiation 
C) product substitution 
D) focus low-cost 
E) focus differentiation

Question 18

When a company recognizes that the needs of one market segment is not the same as another and accordingly customizes its product offerings,it is said to be pursuing:

Accepted Answer

A) stuck-in-the-middle strategy. 
B) rapid-growth strategy. 
C) differentiation strategy. 
D) focus strategy. 
E) low-cost strategy. 
A) stuck-in-the-middle strategy. 
B) rapid-growth strategy. 
C) differentiation strategy. 
D) focus strategy. 
E) low-cost strategy.

Question 19

Which of the following statements is true of differentiation and cost structure?

Accepted Answer

A) Differentiation and cost structure decisions affect one another. 
B) Differentiation and cost structure decisions do not affect one another. 
C) Companies that focus on the higher-value end of the market have a lower cost structure. 
D) Differentiation decisions do not affect a company's profitability. 
E) Cost structure decisions do not affect a company's profitability. 
A) Differentiation and cost structure decisions affect one another. 
B) Differentiation and cost structure decisions do not affect one another. 
C) Companies that focus on the higher-value end of the market have a lower cost structure. 
D) Differentiation decisions do not affect a company's profitability. 
E) Cost structure decisions do not affect a company's profitability.

Question 20

All focus strategies entail serving a specific market segment using a differentiation approach.

Accepted Answer

A) True 
 B)False

Differentiation can help a company to grow overall demand and capture market share from its rivals.

Define the generic business-level strategies companies pursue.

A product's appeal to customers' desires cannot be considered a source of differentiation.

A firm's business model should contain three components: what is to be satisfied,who is to be satisfied,and how they will be satisfied.

A differentiation strategy is based on creating a product that customers perceive as being:

Which of the following generic competitive strategies is a producer of commodity steel most likely to pursue?

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by initiating price wars and driving weaker rivals out of the industry.

Differentiation leads to high brand loyalty,which in turn significantly increases the threat of new firms entering the industry.

Yankee Candle Company offers customers candles that burn for 50-60 hours,much longer than most department store candle brands.Therefore,customers are willing to pay a higher price for these candles.Which of the following strategies is Yankee Candle Company following?

Companies with a differentiation advantage tend to charge a lower price for their products.

The efficiency frontier is not static; it is continually being pushed outwards by the efforts of managers to improve their firm's performance through innovation.

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

A market segment consists of a group of:

Delta Airlines used to advertise its high-quality air travel service by saying it flew "anywhere,anytime." What generic strategy is represented by this advertisement?

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by:

One of the great advantages of successful value innovation is that it can catch rivals off guard and make it difficult for them to catch up.

When a company targets a certain segment or niche,and customizes its offering to the needs of that particular segment through the addition of features and functions,the company is pursuing a _____ strategy.

When a company recognizes that the needs of one market segment is not the same as another and accordingly customizes its product offerings,it is said to be pursuing:

Which of the following statements is true of differentiation and cost structure?

All focus strategies entail serving a specific market segment using a differentiation approach.

Strategic Leadership: Managing the Strategy Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building 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 Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters

Exam 5: Business Level Strategy

Differentiation can help a company to grow overall demand and capture market share from its rivals.

Define the generic business-level strategies companies pursue.

A product's appeal to customers' desires cannot be considered a source of differentiation.

A firm's business model should contain three components: what is to be satisfied,who is to be satisfied,and how they will be satisfied.

A differentiation strategy is based on creating a product that customers perceive as being:

Which of the following generic competitive strategies is a producer of commodity steel most likely to pursue?

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by initiating price wars and driving weaker rivals out of the industry.

Differentiation leads to high brand loyalty,which in turn significantly increases the threat of new firms entering the industry.

Yankee Candle Company offers customers candles that burn for 50-60 hours,much longer than most department store candle brands.Therefore,customers are willing to pay a higher price for these candles.Which of the following strategies is Yankee Candle Company following?

Companies with a differentiation advantage tend to charge a lower price for their products.

The efficiency frontier is not static; it is continually being pushed outwards by the efforts of managers to improve their firm's performance through innovation.

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

A market segment consists of a group of:

Delta Airlines used to advertise its high-quality air travel service by saying it flew "anywhere,anytime." What generic strategy is represented by this advertisement?

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by:

One of the great advantages of successful value innovation is that it can catch rivals off guard and make it difficult for them to catch up.

When a company targets a certain segment or niche,and customizes its offering to the needs of that particular segment through the addition of features and functions,the company is pursuing a _____ strategy.

When a company recognizes that the needs of one market segment is not the same as another and accordingly customizes its product offerings,it is said to be pursuing:

Which of the following statements is true of differentiation and cost structure?

All focus strategies entail serving a specific market segment using a differentiation approach.

Strategic Leadership: Managing the Strategy Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building 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 Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters