Exam 4: Business-Level Strategy

The term "stuck in the middle":

Netflix offers products to customers on demand.What type of business model does Netflix use?

A firm successfully implementing a differentiation strategy would expect:

A risk of the differentiation strategy is that a firm's means of differentiation may cease to provide value for which customers are willing to pay.

Firms use the integrated cost leadership/differentiation strategy because:

Blind taste-tests have shown that the taste of premium-priced vodkas and inexpensive vodkas are indistinguishable even to regular drinkers of vodka.But the sales of premium vodkas are thriving.This is an example of the:

An interior decorator has moved his business from Los Angeles to St.Paul, Minnesota because his spouse's company transferred her to St.Paul.The decorator is distressed because the customers in his target market have, in his words, "banal and bourgeois taste." Which of the following is the decorator's problem?

Target's brand promise "Expect More.Pay Less" and appeal to higher-income, fashion-conscious discount shoppers illustrates the __________ strategy.

Which of the following statements is true?

Research suggests that having a competitive advantage in __________ creates more value with a cost leadership strategy than with a differentiation strategy.

Starbucks determined that all of the following customer needs were important EXCEPT:

Strategic fit among many activities (often illustrated in an activity map) is fundamental to:

Monteleone Company pays large fees to a highly recognizable, prestigious individual to be the spokesperson for the company's luxury private jets.Monteleone is probably following the:

All of the following are considered generic business-level strategies EXCEPT:

When firms use core competencies to implement value-creating strategies, they are answering the "__________" question.

All of the following are ways that a good or service can be differentiated EXCEPT:

Flexible manufacturing systems, information networks, and total quality management are three techniques that make it possible for firms to implement the focused differentiation strategy.

The hazard of getting "stuck in the middle" applies to firms using any business strategy.

A new generation of lunch trucks in cities such as New York, San Francisco, and Los Angeles is serving high-end fare such as hamburgers made from grass-fed cattle, escargot, and crème brulee, at less expensive prices than sit-down restaurants.This illustrates a focused differentiation strategy.

Effective use of the generic business strategies allows a firm to favorably position itself relative to the five competitive forces in the industry.