Exam 4: Business-Level Strategy

The key to Southwest Airlines' success has been its ability to continuously reduce costs while providing customers with superior levels of differentiation, such as an engaging culture.

Firms implementing cost leadership strategies often sell no-frills standardized goods or services (but with competitive levels of differentiation) to the industry's most typical customers.

Strategic fit among the many activities in the value chain is critical for competitive advantage because it is more difficult for a competitor to match a configuration of integrated activities than to imitate a particular activity, such as sales promotion or a process technology.

Amazon has built capabilities around Internet technology and e-commerce to facilitate information exchanges with its customers in a cost-effective manner.This represents which of the following service dimension?

Recently, the only type of car available for Anthony to rent on a business trip was a compact, fuel-efficient Japanese import.Anthony was surprised at the comfort and performance of the car.He is in the market for a new car and had previously considered only buying another luxury SUV.Now, he is thinking about the significant cost savings he would have if he bought the compact vehicle rather than a new SUV.This is an example of the competitive risk that:

Before a firm decides what products to offer and what benefits and features they will have, it must determine all of the following EXCEPT:

Describe the risks of a differentiation strategy.

Define strategy and business-level strategy.What is the difference between these two concepts?

Suppose another firm found a way to offer IKEA's customers (young buyers interested in stylish furniture at low cost) additional sources of differentiation while charging the same price or to provide the same service with the same sources of differentiation at a lower price.Which of the following categories of competitive risk to a focus strategy would this be?

The differentiation strategy is ineffective for products that are expensive, luxury consumer goods.It is best used for common, inexpensive products such as donuts.

Describe the advantages of integrating cost leadership and differentiation strategies.

One benefit of a flexible manufacturing system is that:

The risks of a focus strategy include:

Which of the following are central to implementing value-creating strategies and thereby satisfying customers' needs?

A flexible manufacturing system is:

Blue Apron is committed to helping customers make good choices in what they eat by delivering food directly to consumers.Blue Apron had a __________ model and uses a __________ strategy.

Focus strategies are:

A __________ is a framework for how a firm will create, deliver, and capture value.

Changing consumer needs are illustrated by Starbucks' enabling consumers to have an experience and design their own drinks rather than just a cup of coffee.

A business-level strategy describes what a firm does to create, deliver, and capture value for its stakeholders.