Exam 16: Strategic Elements of Competitive Advantage

Michael Porter's four generic strategies for achieving competitive advantage are product differentiation,price leadership,promotion power,and distribution efficiency.

"Factor conditions" refers to a country's endowment with resources,which may have been created or inherited.

The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces.

Suppose you are a sales representative for Advanced Micro Devices (AMD)in Japan.You are trying to convince Toshiba to buy your company's superfast Opteron microprocessor for its new laptop computer.Toshiba's representative seems interested,but eventually does not actually place an order.Confidentially,the representative tells you that he is afraid that Intel will withhold shipments of its Pentium 4 if he does business with AMD.Thinking about Intel's role in this scenario,which of the following elements of the five forces model is evident here?

According to the hypercompetition model of competitive advantage,which of the following allows the firm to create an entirely new product or market?

New entrants to an industry bring all of the following except:

IKEA's founder Ingvar Kamprad's frugal ways also applied to the company's finances.To minimize tax liabilities,he split the company into two parts: Inter Ikea owns the brand and the concept,while Ikea Group runs the retailing operations.

What are demand conditions? Why is the nature of home demand conditions for the firm's or industry's products and services important?

Intel achieved success by using the "Intel Inside" advertising campaign and logo that appears on many brands of PCs.This is an example of a barrier to entry classified as:

Factors which determine suppliers' ability to gain leverage over industry firms include all of the following except:

Competition in an industry tends to drive rates of return on invested capital up towards what is described as "perfectly competitive."

Walmart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery.Recording artists who want their recordings available at Walmart have the option of altering lyrics and song titles or deleting offending tracks.Likewise,artists are sometimes asked to change album cover art if Walmart deems it offensive.Considering the elements of the five forces model this is an example of:

Microsoft and Intel are two companies that illustrate the concept of "bargaining power of suppliers" in Porter's five forces model of industry competition.

"Switching costs" is one of the barriers to entry in Porter's five forces model.

In Michael Porter's model,"buyers" refers to manufacturers (e.g. ,GM)and retailers (e.g.Walmart),rather than consumers.

Analyzed in terms of Porter's five forces model,Walmart's ability to dictate terms to the music industry is one indication of the retail giant's supplier power.

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

Which of the following statements is incorrect regarding Benetton Group?

Rugman and D'Cruz have developed an alternative framework to Porter's five forces model.The framework,based on business networks,is called:

According to Michael Porter's research on the competitive advantage of nations,human,physical,knowledge,capital,and infrastructure resources are all components of a country's: