Exam 4: Business-Level Strategy

Delgado is a U.S.-based firm that serves an international market.It determines product offerings and price points based on the country in which the product will be sold.Delgado is using consumption patterns as the basis for segmenting its customers.

In order to meet and exceed customers' expectations over time, firms must:

The differentiation strategy can be effective in controlling the power of rivalry with existing competitors in an industry because:

If Southwest Airlines' employees lost their high enthusiasm and commitment to the company:

Durable Ceramics, Inc., provides inexpensive ceramic tile to builders of institutional buildings such as schools, prisons, and public administration buildings.It has always competed on a cost leadership basis.Most of its products are purchased by a few commercial construction firms, so it is fairly dependent on these construction firms for selling its product.Durable Ceramics' next-most-efficient competitor, Cost-Less Ceramics, Inc., earns average returns, whereas Durable earns above-average returns.The commercial construction firms are putting pressure on Durable to reduce its prices.If Durable reduces its prices below those of Cost-Less's prices, it is likely that:

Three sources of flexibility in completing primary and support activities are particularly useful for firms using the integrated strategy.These are:

All of the following describe strategies EXCEPT that they:

A low-cost position in the industry is not a valuable defense against rivals when competing on the basis of price.

A cost leadership strategy targets the industry's __________ customers.

Every firm uses all levels of strategy: corporate-level, merger and acquisition, international, and cooperative.

New Balance Athletic Shoes target baby boomers' needs for well-fitting shoes.The company is unique in that it offers a very broad range of shoe widths.A realistic potential risk New Balance runs in this focused differentiation strategy includes the possibility that: