Question 1

Describe the two basic cost-reducing approaches a company can take to become a low-cost provider in its industry.

Accepted Answer

The two basic cost-reducing approaches a

Question 2

The major avenues for achieving a cost advantage over rivals include:

Accepted Answer

A)  performing value chain activities more cost-effectively than rivals or revamping the firm's overall value chain to eliminate or bypass some cost-producing activities. 
B)  having a management team that is highly skilled in cutting costs. 
C)  being a first-mover in adopting the latest state-of-the-art technologies,especially those relating to low-cost manufacture. 
D)  outsourcing high-cost activities to cost-efficient vendors. 
E)  paying lower wages and salaries than rivals. 
A)  performing value chain activities more cost-effectively than rivals or revamping the firm's overall value chain to eliminate or bypass some cost-producing activities. 
B)  having a management team that is highly skilled in cutting costs. 
C)  being a first-mover in adopting the latest state-of-the-art technologies,especially those relating to low-cost manufacture. 
D)  outsourcing high-cost activities to cost-efficient vendors. 
E)  paying lower wages and salaries than rivals.

Question 3

The essence of a broad differentiation strategy is to:

Accepted Answer

A)  appeal to the high-end part of the market and concentrate on providing a top-of-the-line product to consumers. 
B)  incorporate a greater number of differentiating features into its product/service than rivals. 
C)  lower buyer switching costs. 
D)  outspend rivals on advertising and promotion in order to inform and convince buyers of the value of its differentiating attributes. 
E)  offer unique product attributes in ways that are valuable and appealing and that buyers consider worth paying for. 
A)  appeal to the high-end part of the market and concentrate on providing a top-of-the-line product to consumers. 
B)  incorporate a greater number of differentiating features into its product/service than rivals. 
C)  lower buyer switching costs. 
D)  outspend rivals on advertising and promotion in order to inform and convince buyers of the value of its differentiating attributes. 
E)  offer unique product attributes in ways that are valuable and appealing and that buyers consider worth paying for.

Question 4

The production emphasis of a company pursuing a broad differentiation strategy usually involves:

Accepted Answer

A)  eliminating cost reduction and decreasing quality and essential features to boost profitability. 
B)  strong efforts to be a leader in manufacturing process innovation. 
C)  emphasis on building differentiating features that buyers are willing to pay for and includes wide selection and many product variations. 
D)  the aggressive pursuit of economies of scale and experience-curve effects. 
E)  developing a distinctive competence in zero-defect manufacturing techniques. 
A)  eliminating cost reduction and decreasing quality and essential features to boost profitability. 
B)  strong efforts to be a leader in manufacturing process innovation. 
C)  emphasis on building differentiating features that buyers are willing to pay for and includes wide selection and many product variations. 
D)  the aggressive pursuit of economies of scale and experience-curve effects. 
E)  developing a distinctive competence in zero-defect manufacturing techniques.

Question 5

Whether a broad differentiation strategy ends up enhancing a company's profitability depends mainly on whether:

Accepted Answer

A)  many buyers view the product's differentiating features as having value. 
B)  most buyers have similar needs and use the product in the same ways. 
C)  most buyers accept the customer value proposition as unique and the product can produce sufficient unit sales to cover the costs of achieving the differentiation. 
D)  buyer switching costs are low and customer loyalty to any one brand is low. 
E)  buyers are prone to shop the market for sellers offering the best price. 
A)  many buyers view the product's differentiating features as having value. 
B)  most buyers have similar needs and use the product in the same ways. 
C)  most buyers accept the customer value proposition as unique and the product can produce sufficient unit sales to cover the costs of achieving the differentiation. 
D)  buyer switching costs are low and customer loyalty to any one brand is low. 
E)  buyers are prone to shop the market for sellers offering the best price.

Question 6

Explain how the keys to sustaining a broad differentiation strategy differ from the keys to sustaining a best-cost producer strategy.

Accepted Answer

The keys to sustaining a broad different

Question 7

The culture of a company can be a cost-efficient value chain activity because it can:

Accepted Answer

A)  allow for safeguarding internalized operating benefits. 
B)  distinguish a company's capacity integration efforts. 
C)  spur worker pride in productivity and continuous improvement. 
D)  foster quality technological enhancements. 
E)  increase a company's bargaining power with suppliers. 
A)  allow for safeguarding internalized operating benefits. 
B)  distinguish a company's capacity integration efforts. 
C)  spur worker pride in productivity and continuous improvement. 
D)  foster quality technological enhancements. 
E)  increase a company's bargaining power with suppliers.

Question 8

A government oil company is having trouble with the private refineries and transporters to whom it delegates important stages of production.It decides to become more active along the entire supply chain from locating deposits to retailing the fuel to consumers.Which of the following does it intend to achieve?

Accepted Answer

A)  Outsourcing 
B)  Economies of scale 
C)  Increase inputs 
D)  Advanced production technology 
E)  Vertical integration 
A)  Outsourcing 
B)  Economies of scale 
C)  Increase inputs 
D)  Advanced production technology 
E)  Vertical integration

Question 9

A mobile manufacturer decides to reduce the price of its latest line of smart phones,which are not the cheapest but have features that are popular among most users.Which strategy is the manufacturer using?

Accepted Answer

The best-cost provider strategy gives cu

Question 10

What are the pitfalls to be avoided in pursuing a broad differentiation strategy?

Accepted Answer

The pitfalls in pursuing a broad differe

Question 11

The generic types of competitive strategies include:

Accepted Answer

A)  market share growth provider,sales revenue leader strategy,and market share retention strategy. 
B)  offensive strategies,defensive strategies,and counter maneuvers strategies. 
C)  low-cost provider,broad differentiation,best-cost provider,focused low-cost,and focused differentiation strategies. 
D)  low-cost/low-price strategies,high-quality/high-price strategies,and medium quality/medium price strategies. 
E)  price leader strategies,price follower strategies,technology leader strategies,and first-mover strategies. 
A)  market share growth provider,sales revenue leader strategy,and market share retention strategy. 
B)  offensive strategies,defensive strategies,and counter maneuvers strategies. 
C)  low-cost provider,broad differentiation,best-cost provider,focused low-cost,and focused differentiation strategies. 
D)  low-cost/low-price strategies,high-quality/high-price strategies,and medium quality/medium price strategies. 
E)  price leader strategies,price follower strategies,technology leader strategies,and first-mover strategies.

Question 12

Whatever strategic approach is adopted by a company to deliver value,it nearly always requires:

Accepted Answer

A)  that management undertake formal planning sessions with functional departments to ensure productivity improvement. 
B)  the identification of strengths and weaknesses within the company. 
C)  matching corporate identity with the corporate culture in order to integrate effort and build sales momentum. 
D)  performing value chain activities differently than rivals and building competitively valuable resources and capabilities that rivals cannot readily match. 
E)  constant efforts to thwart entry of new rivals and their attempts to create differentiated products with unit costs above price premium. 
A)  that management undertake formal planning sessions with functional departments to ensure productivity improvement. 
B)  the identification of strengths and weaknesses within the company. 
C)  matching corporate identity with the corporate culture in order to integrate effort and build sales momentum. 
D)  performing value chain activities differently than rivals and building competitively valuable resources and capabilities that rivals cannot readily match. 
E)  constant efforts to thwart entry of new rivals and their attempts to create differentiated products with unit costs above price premium.

Question 13

How valuable a low-cost leader's cost advantage is depends on:

Accepted Answer

A)  whether it is easy or inexpensive for rivals to copy the low-cost leader's methods or otherwise match its low costs. 
B)  how easy it is for the low-cost leader to gain the biggest market share. 
C)  the aggressiveness with which the low-cost leader pursues converting the cost advantage into the absolute lowest possible costs. 
D)  the leader's ability to combine the cost advantage with a reputation for good quality. 
E)  the low-cost leader's ability to be the industry leader in manufacturing innovation so as to keep lowering its manufacturing costs. 
A)  whether it is easy or inexpensive for rivals to copy the low-cost leader's methods or otherwise match its low costs. 
B)  how easy it is for the low-cost leader to gain the biggest market share. 
C)  the aggressiveness with which the low-cost leader pursues converting the cost advantage into the absolute lowest possible costs. 
D)  the leader's ability to combine the cost advantage with a reputation for good quality. 
E)  the low-cost leader's ability to be the industry leader in manufacturing innovation so as to keep lowering its manufacturing costs.

Question 14

Which of the following generic types of competitive strategies is typically the "best" strategy for a company to employ?

Accepted Answer

A)  A strategy that seeks to underprice rivals on comparable products that attract a broad spectrum of buyers 
B)  A strategy that seeks to differentiate product offerings from rivals by offering superior attributes that attract a broad spectrum of buyers 
C)  A strategy that concentrates on a narrow buyer segment and outcompetes rivals by offering niche members customized attributes 
D)  A strategy that concentrates on value-conscious buyers and outcompetes rivals by offering products at attractive prices 
E)  A strategy that is customized to fit the macro-environment and industry and employs resources and capabilities that rivals have trouble duplicating 
A)  A strategy that seeks to underprice rivals on comparable products that attract a broad spectrum of buyers 
B)  A strategy that seeks to differentiate product offerings from rivals by offering superior attributes that attract a broad spectrum of buyers 
C)  A strategy that concentrates on a narrow buyer segment and outcompetes rivals by offering niche members customized attributes 
D)  A strategy that concentrates on value-conscious buyers and outcompetes rivals by offering products at attractive prices 
E)  A strategy that is customized to fit the macro-environment and industry and employs resources and capabilities that rivals have trouble duplicating

Question 15

Success with a best-cost provider strategy designed to outcompete high-end differentiators requires:

Accepted Answer

A)  achieving significantly lower costs in providing the upscale features. 
B)  providing significantly better product attributes in order to justify a price above what low-cost leaders are charging. 
C)  matching the company's resources and capabilities to a low-cost provider status. 
D)  motivating buyers to purchase upscale features that match rivals. 
E)  achieving the lowest costs in the industry. 
A)  achieving significantly lower costs in providing the upscale features. 
B)  providing significantly better product attributes in order to justify a price above what low-cost leaders are charging. 
C)  matching the company's resources and capabilities to a low-cost provider status. 
D)  motivating buyers to purchase upscale features that match rivals. 
E)  achieving the lowest costs in the industry.

Question 16

Approaches to enhancing differentiation through changes in the value chain do NOT include:

Accepted Answer

A)  coordinating with retailers to enhance the buying experience and building a company's image. 
B)  coordinating with suppliers to speed up new product development cycles. 
C)  coordinating with distributors or shippers to lower shipping costs. 
D)  collaborating with suppliers to improve many dimensions affecting product features and quality. 
E)  coordinating with employees to create a greater incentive systems to encourage worker productivity 
A)  coordinating with retailers to enhance the buying experience and building a company's image. 
B)  coordinating with suppliers to speed up new product development cycles. 
C)  coordinating with distributors or shippers to lower shipping costs. 
D)  collaborating with suppliers to improve many dimensions affecting product features and quality. 
E)  coordinating with employees to create a greater incentive systems to encourage worker productivity

Question 17

What sets focused (or market niche)strategies apart from low-cost leadership and broad differentiation strategies is:

Accepted Answer

A)  the extra attention paid to top-notch product performance and product quality. 
B)  their concentrated attention on serving the needs of buyers in a narrow piece of the overall market. 
C)  greater opportunity for competitive advantage. 
D)  their suitability for market situations where most industry rivals have weakly differentiated products. 
E)  their objective of delivering more value for the least money. 
A)  the extra attention paid to top-notch product performance and product quality. 
B)  their concentrated attention on serving the needs of buyers in a narrow piece of the overall market. 
C)  greater opportunity for competitive advantage. 
D)  their suitability for market situations where most industry rivals have weakly differentiated products. 
E)  their objective of delivering more value for the least money.

Question 18

The big danger or risk of a best-cost provider strategy is:

Accepted Answer

A)  that buyers will be highly skeptical about paying a relatively low price for upscale attributes/features. 
B)  not establishing strong alliances and partnerships with key suppliers. 
C)  that rivals with low-cost provider strategies will be able to steal away some customers on the basis of a lower price,and high-end differentiators will be able to steal away customers with the appeal of better product attributes. 
D)  that it will be unable to achieve top-notch quality at a rock-bottom cost. 
E)  becoming too highly integrated and not relying enough on outsourcing. 
A)  that buyers will be highly skeptical about paying a relatively low price for upscale attributes/features. 
B)  not establishing strong alliances and partnerships with key suppliers. 
C)  that rivals with low-cost provider strategies will be able to steal away some customers on the basis of a lower price,and high-end differentiators will be able to steal away customers with the appeal of better product attributes. 
D)  that it will be unable to achieve top-notch quality at a rock-bottom cost. 
E)  becoming too highly integrated and not relying enough on outsourcing.

Question 19

For a best-cost provider strategy to be successful,a company must have:

Accepted Answer

A)  excellent marketing and sales skills in convincing buyers to pay a premium price for the attributes/features incorporated in its product. 
B)  resource strengths and competitive capabilities that allow it to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes. 
C)  access to greater learning/experience curve effects and scale economies than rivals. 
D)  one of the best-known and most respected brand names in the industry. 
E)  a short,low-cost value chain. 
A)  excellent marketing and sales skills in convincing buyers to pay a premium price for the attributes/features incorporated in its product. 
B)  resource strengths and competitive capabilities that allow it to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes. 
C)  access to greater learning/experience curve effects and scale economies than rivals. 
D)  one of the best-known and most respected brand names in the industry. 
E)  a short,low-cost value chain.

Question 20

Focusing carries several risks,one of which is the:

Accepted Answer

A)  chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace. 
B)  chance that competitors will find effective ways to match the focused firm's capabilities in serving the target market. 
C)  potential for the segment to be highly vulnerable to economic cycles. 
D)  potential for the segment to become too specialized for other multi-segmented rivals to enter. 
E)  inability of a company to compete industry-wide. 
A)  chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace. 
B)  chance that competitors will find effective ways to match the focused firm's capabilities in serving the target market. 
C)  potential for the segment to be highly vulnerable to economic cycles. 
D)  potential for the segment to become too specialized for other multi-segmented rivals to enter. 
E)  inability of a company to compete industry-wide.

Describe the two basic cost-reducing approaches a company can take to become a low-cost provider in its industry.

The major avenues for achieving a cost advantage over rivals include:

The essence of a broad differentiation strategy is to:

The production emphasis of a company pursuing a broad differentiation strategy usually involves:

Whether a broad differentiation strategy ends up enhancing a company's profitability depends mainly on whether:

Explain how the keys to sustaining a broad differentiation strategy differ from the keys to sustaining a best-cost producer strategy.

The culture of a company can be a cost-efficient value chain activity because it can:

A mobile manufacturer decides to reduce the price of its latest line of smart phones,which are not the cheapest but have features that are popular among most users.Which strategy is the manufacturer using?

What are the pitfalls to be avoided in pursuing a broad differentiation strategy?

The generic types of competitive strategies include:

Whatever strategic approach is adopted by a company to deliver value,it nearly always requires:

How valuable a low-cost leader's cost advantage is depends on:

Which of the following generic types of competitive strategies is typically the "best" strategy for a company to employ?

Success with a best-cost provider strategy designed to outcompete high-end differentiators requires:

Approaches to enhancing differentiation through changes in the value chain do NOT include:

What sets focused (or market niche)strategies apart from low-cost leadership and broad differentiation strategies is:

The big danger or risk of a best-cost provider strategy is:

For a best-cost provider strategy to be successful,a company must have:

Focusing carries several risks,one of which is the:

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, Andstrategy

Evaluating a Companys External Environment

Evaluating a Companys Resources, Capabilities, and Competitiveness

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental-Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations

Corporate Culture and Leadership

Filters

Exam 5: The Five Generic Competitive Strategies

Describe the two basic cost-reducing approaches a company can take to become a low-cost provider in its industry.

The major avenues for achieving a cost advantage over rivals include:

The essence of a broad differentiation strategy is to:

The production emphasis of a company pursuing a broad differentiation strategy usually involves:

Whether a broad differentiation strategy ends up enhancing a company's profitability depends mainly on whether:

Explain how the keys to sustaining a broad differentiation strategy differ from the keys to sustaining a best-cost producer strategy.

The culture of a company can be a cost-efficient value chain activity because it can:

A mobile manufacturer decides to reduce the price of its latest line of smart phones,which are not the cheapest but have features that are popular among most users.Which strategy is the manufacturer using?

What are the pitfalls to be avoided in pursuing a broad differentiation strategy?

The generic types of competitive strategies include:

Whatever strategic approach is adopted by a company to deliver value,it nearly always requires:

How valuable a low-cost leader's cost advantage is depends on:

Which of the following generic types of competitive strategies is typically the "best" strategy for a company to employ?

Success with a best-cost provider strategy designed to outcompete high-end differentiators requires:

Approaches to enhancing differentiation through changes in the value chain do NOT include:

What sets focused (or market niche)strategies apart from low-cost leadership and broad differentiation strategies is:

The big danger or risk of a best-cost provider strategy is:

For a best-cost provider strategy to be successful,a company must have:

Focusing carries several risks,one of which is the:

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, Andstrategy

Evaluating a Companys External Environment

Evaluating a Companys Resources, Capabilities, and Competitiveness

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental-Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations

Corporate Culture and Leadership

Filters