Exam 5: Selecting Business-Level Strategies

A company introduces a new product in the market. The company decides that the only way it could attract customers is to keep the price of the product lower than what its competitors charge. What advantage would the company enjoy because of the strategy it proposes to follow?

(Multiple Choice)

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Question 81

A company introduces a new product in the market. The company decides that the only way it could attract customers is to keep the price of the product lower than what its competitors charge. Which of the following disadvantage would the company face because of the strategy it proposes to follow?

(Multiple Choice)

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Question 82

A health drink company is known for launching drinks with flavors which are different from what are offered in the market. It regularly indulges in experimentation to come up with new and exotic flavored drinks. It also charges higher than what other health drink companies charge. What advantage would the company enjoy because of the strategy it follows?

(Multiple Choice)

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Question 83

The nature of the narrow target market remains constant across firms that use a focused cost leadership strategy.

(True/False)

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Question 84

A company introduces a new helmet for bikers. The company prices the helmets much lower than others offered in the market. This enables the company to attract a lot of customers. This is an example of a(n) _____ strategy.

(Multiple Choice)

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Question 85

Car manufacturers such as Lamborghini compete in the small super car category. These cars offer more than just transportation. They are known for their styling and state-of-the-art technology. Which of the following is an advantage for such a company?

(Multiple Choice)

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Question 86

A differentiation strategy helps break barriers to entry that protect the firm and its industry from new competition.

(True/False)

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Question 87

A firm is said to be _____ if it does not offer features that are unique enough to convince customers to buy its offerings and its prices are too high to effectively compete on based on price.

(Multiple Choice)

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Question 88

Which of the following is NOT a generic business level strategy?

(Multiple Choice)

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Question 89

Cost leaders are often large companies, and this allows them to demand price concessions from their suppliers.

(True/False)

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Question 90

A relative lack of market research can lead cost leaders to be not as skilled as other firms at detecting important environmental changes.

(True/False)

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Question 91

Cost leaders tend to keep their costs low by minimizing_______, market research, and research and development

(Multiple Choice)

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Question 92

What are the disadvantages of a focused differentiation strategy?

(Essay)

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Question 93

A firm's business-level strategy should involve trying to serve the varied needs of every different segment of customers in an industry.

(True/False)

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Question 94

According to Porter, which two competitive dimensions are the keys to business-level strategy?

(Essay)

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Question 95

Showing 81 - 95 of 95

A company introduces a new product in the market. The company decides that the only way it could attract customers is to keep the price of the product lower than what its competitors charge. What advantage would the company enjoy because of the strategy it proposes to follow?

A company introduces a new product in the market. The company decides that the only way it could attract customers is to keep the price of the product lower than what its competitors charge. Which of the following disadvantage would the company face because of the strategy it proposes to follow?

The nature of the narrow target market remains constant across firms that use a focused cost leadership strategy.

A company introduces a new helmet for bikers. The company prices the helmets much lower than others offered in the market. This enables the company to attract a lot of customers. This is an example of a(n) _____ strategy.

Car manufacturers such as Lamborghini compete in the small super car category. These cars offer more than just transportation. They are known for their styling and state-of-the-art technology. Which of the following is an advantage for such a company?

A differentiation strategy helps break barriers to entry that protect the firm and its industry from new competition.

A firm is said to be _____ if it does not offer features that are unique enough to convince customers to buy its offerings and its prices are too high to effectively compete on based on price.

Which of the following is NOT a generic business level strategy?

Cost leaders are often large companies, and this allows them to demand price concessions from their suppliers.

A relative lack of market research can lead cost leaders to be not as skilled as other firms at detecting important environmental changes.

Cost leaders tend to keep their costs low by minimizing_______, market research, and research and development

What are the disadvantages of a focused differentiation strategy?

A firm's business-level strategy should involve trying to serve the varied needs of every different segment of customers in an industry.

According to Porter, which two competitive dimensions are the keys to business-level strategy?

Mastering Strategy: Art and Science

Leading Strategically

Evaluating the External Environment

Managing Company Resources

Supporting the Business-Level Strategy: Competitive and Cooperative Moves

Competing in International Markets

Selecting Corporate-Level Strategies

Executing Strategy Through Organizational Design

Leading an Ethical Organization: Corporate Governance, Corporate Ethics, and Social Responsibility

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