Question 1

A low-cost provider's product does NOT have to always:

Accepted Answer

A)  contain enough attributes to be attractive to prospective buyers. 
B)  suggest strong rather than weak product differentiation. 
C)  signal value to buyers. 
D)  provide high margins per unit sold to bring in enough unit sales. 
E)  be valuable and appealing to a wide range of buyers. 
A)  contain enough attributes to be attractive to prospective buyers. 
B)  suggest strong rather than weak product differentiation. 
C)  signal value to buyers. 
D)  provide high margins per unit sold to bring in enough unit sales. 
E)  be valuable and appealing to a wide range of buyers.

Question 2

Low-cost leaders who have the lowest industry costs are likely to:

Accepted Answer

A)  have out managed rivals in finding ways to perform value chain activities more cost-effectively. 
B)  be considering exiting the current product market and use their competitive low-cost strength to gain a competitive advantage in other product arenas. 
C)  be favorites to win the game of strategy in the long run. 
D)  understand that driving costs to the lowest possible level is the only way to sell cheap products to consumers. 
E)  understand that they have lower bargaining power with suppliers than rivals who employ a different strategy. 
A)  have out managed rivals in finding ways to perform value chain activities more cost-effectively. 
B)  be considering exiting the current product market and use their competitive low-cost strength to gain a competitive advantage in other product arenas. 
C)  be favorites to win the game of strategy in the long run. 
D)  understand that driving costs to the lowest possible level is the only way to sell cheap products to consumers. 
E)  understand that they have lower bargaining power with suppliers than rivals who employ a different strategy.

Question 3

Brands create customer loyalty,which in turn:

Accepted Answer

A)  increases the perceived cost of switching to another product. 
B)  strengthens the product's quality. 
C)  validates the motivation for alternate products. 
D)  provides monetary incentive for using the product. 
E)  allows a company to operate facilities at full capacity. 
A)  increases the perceived cost of switching to another product. 
B)  strengthens the product's quality. 
C)  validates the motivation for alternate products. 
D)  provides monetary incentive for using the product. 
E)  allows a company to operate facilities at full capacity.

Question 4

While there are many routes to competitive advantage,the two biggest factors that distinguish one competitive strategy from another are:

Accepted Answer

A)  whether a company can build a brand name and an image that buyers trust. 
B)  whether a company's target market is broad or narrow and whether the company is pursuing a low cost or differentiation strategy. 
C)  whether a company can achieve lower costs than rivals and whether the company is pursuing the industry's sales and market share leader's role. 
D)  whether a company can offer the lowest possible prices and whether the company can get the best suppliers in the market. 
E)  whether a company's overall costs are lower than competitors' and whether the company can achieve strong product differentiation. 
A)  whether a company can build a brand name and an image that buyers trust. 
B)  whether a company's target market is broad or narrow and whether the company is pursuing a low cost or differentiation strategy. 
C)  whether a company can achieve lower costs than rivals and whether the company is pursuing the industry's sales and market share leader's role. 
D)  whether a company can offer the lowest possible prices and whether the company can get the best suppliers in the market. 
E)  whether a company's overall costs are lower than competitors' and whether the company can achieve strong product differentiation.

Question 5

Best-cost provider strategies are those that:

Accepted Answer

A)  are a hybrid of low-cost provider and differentiation strategies that aim at providing desired attributes while beating rivals on price. 
B)  are rewarded by providing buyers with the best attributes at a premium. 
C)  have strategy elements related to the lowest-cost provider in the largest and fastest growing (or best)market segment. 
D)  look for a low-cost advantage rather than a differentiation advantage. 
E)  look for a differentiation advantage rather than a low-cost advantage. 
A)  are a hybrid of low-cost provider and differentiation strategies that aim at providing desired attributes while beating rivals on price. 
B)  are rewarded by providing buyers with the best attributes at a premium. 
C)  have strategy elements related to the lowest-cost provider in the largest and fastest growing (or best)market segment. 
D)  look for a low-cost advantage rather than a differentiation advantage. 
E)  look for a differentiation advantage rather than a low-cost advantage.

Question 6

A ketchup manufacturer convinces a supplier who makes vinegar to set up a nearby plant.Which of the following benefits will the ketchup manufacturer be least assured of?

Accepted Answer

A)  Improved value chain system 
B)  Improved overall quality control 
C)  Lower incoming shipping costs 
D)  Just-in-time deliveries 
E)  Reduced storage needs 
A)  Improved value chain system 
B)  Improved overall quality control 
C)  Lower incoming shipping costs 
D)  Just-in-time deliveries 
E)  Reduced storage needs

Question 7

An organic foods manufacturer insists on portraying the cleanliness of its farms in its advertisements,charges a higher price for its products,and sells its products only through reputable distributors.What strategy is the manufacturer using to deliver superior value to customers?

Accepted Answer

A)  Signaling the value of the company's product offering to buyers 
B)  Incorporating intangible features 
C)  Incorporating tangible features 
D)  Lowering the buyer's overall cost 
E)  Lowering the overall bargaining power from suppliers 
A)  Signaling the value of the company's product offering to buyers 
B)  Incorporating intangible features 
C)  Incorporating tangible features 
D)  Lowering the buyer's overall cost 
E)  Lowering the overall bargaining power from suppliers

Question 8

Achieving a differentiation-based competitive advantage does NOT involve:

Accepted Answer

A)  incorporating product attributes and user features that lower a buyer's overall cost of using the product. 
B)  incorporating features that raise the performance a buyer gets from using the product. 
C)  incorporating features that enhance buyer satisfaction in noneconomic or intangible ways. 
D)  delivering value to customers via competencies and competitive capabilities that rivals don't have or can't afford to match. 
E)  appealing to buyers on the basis of attributes that rivals are emphasizing 
A)  incorporating product attributes and user features that lower a buyer's overall cost of using the product. 
B)  incorporating features that raise the performance a buyer gets from using the product. 
C)  incorporating features that enhance buyer satisfaction in noneconomic or intangible ways. 
D)  delivering value to customers via competencies and competitive capabilities that rivals don't have or can't afford to match. 
E)  appealing to buyers on the basis of attributes that rivals are emphasizing

Question 9

What strategy would you recommend for a small-sized company entering a highly segmented market,each segment with a complex set of needs and spending power?

Accepted Answer

A focused low-cost strategy or a focused

Question 10

A company attempting to be successful with a broad differentiation strategy has to:

Accepted Answer

A)  study buyer needs and behavior carefully to learn what buyers consider important,what they think has value,and what they are willing to pay for. 
B)  incorporate more differentiating features into its product/service than rivals. 
C)  concentrate its differentiating efforts on marketing and advertising (where almost all differentiating features are created). 
D)  over-differentiate so that product quality,features,or service levels exceed the needs of most buyers 
E)  concentrate on offering advanced features,whether or not they have value to the customers,to create unique products 
A)  study buyer needs and behavior carefully to learn what buyers consider important,what they think has value,and what they are willing to pay for. 
B)  incorporate more differentiating features into its product/service than rivals. 
C)  concentrate its differentiating efforts on marketing and advertising (where almost all differentiating features are created). 
D)  over-differentiate so that product quality,features,or service levels exceed the needs of most buyers 
E)  concentrate on offering advanced features,whether or not they have value to the customers,to create unique products

Question 11

The keys to maintaining a broad differentiation strategy are to:

Accepted Answer

A)  stress constant innovation to stay ahead of imitative rivals and to concentrate on a few differentiating features. 
B)  charge a premium price that more than covers the extra costs of differentiating features and to convince customers to be brand loyal. 
C)  out-innovate and out-advertise rivals. 
D)  emphasize personalized customer service and to add as many differentiating features as possible. 
E)  keep prices close to the average of all rivals and to spend heavily on new product R&D. 
A)  stress constant innovation to stay ahead of imitative rivals and to concentrate on a few differentiating features. 
B)  charge a premium price that more than covers the extra costs of differentiating features and to convince customers to be brand loyal. 
C)  out-innovate and out-advertise rivals. 
D)  emphasize personalized customer service and to add as many differentiating features as possible. 
E)  keep prices close to the average of all rivals and to spend heavily on new product R&D.

Question 12

Focused strategies keyed either to low cost or differentiation are especially appropriate for situations where:

Accepted Answer

A)  the market is composed of distinctly different buyer groups who have different needs or use the product in different ways. 
B)  most other rival firms are using a best-cost producer strategy. 
C)  buyers have strong bargaining power and entry barriers are low. 
D)  most industry rivals have weakly differentiated products. 
E)  most industry participants are also using a focused differentiation strategy. 
A)  the market is composed of distinctly different buyer groups who have different needs or use the product in different ways. 
B)  most other rival firms are using a best-cost producer strategy. 
C)  buyers have strong bargaining power and entry barriers are low. 
D)  most industry rivals have weakly differentiated products. 
E)  most industry participants are also using a focused differentiation strategy.

Question 13

What are the five generic competitive strategies? Briefly describe each one and identify the type of competitive advantage that each strategy is aimed at achieving.

Accepted Answer

The five generic competitive strategies

Question 14

One of the big dangers in crafting a competitive strategy is that managers,torn between the pros and cons of the various generic strategies,will opt for "stuck in the middle" strategies that represent compromises between lower costs and greater differentiation and between broad and narrow market appeal.True or false? Explain your answer.

Accepted Answer

The statement is false.That managers wou

Question 15

Which of the following is NOT one of the ways managers can enhance differentiation based on value drivers?

Accepted Answer

A)  Striving to create superior product features,design,and performance 
B)  Striving for innovation and technological advances 
C)  Pursuing continuous quality improvement 
D)  Increasing the intensity of marketing,brand building,and sales activities 
E)  Seeking out low-quality inputs 
A)  Striving to create superior product features,design,and performance 
B)  Striving for innovation and technological advances 
C)  Pursuing continuous quality improvement 
D)  Increasing the intensity of marketing,brand building,and sales activities 
E)  Seeking out low-quality inputs

Question 16

Being the overall low-cost provider in an industry has the attractive advantage of:

Accepted Answer

A)  building strong customer loyalty and locking customers into its product because customers have high switching costs. 
B)  giving the firm a very appealing brand image. 
C)  putting a firm in the best position to win the business of price-sensitive customers and earn profits by setting the floor on market price. 
D)  putting the company in a strong position to be more profitable than companies pursuing a differentiation strategy. 
E)  greatly reducing the strong bargaining power of rivals with the key distributors. 
A)  building strong customer loyalty and locking customers into its product because customers have high switching costs. 
B)  giving the firm a very appealing brand image. 
C)  putting a firm in the best position to win the business of price-sensitive customers and earn profits by setting the floor on market price. 
D)  putting the company in a strong position to be more profitable than companies pursuing a differentiation strategy. 
E)  greatly reducing the strong bargaining power of rivals with the key distributors.

Question 17

Explain how the marketing emphasis of a low-cost provider differs from the marketing emphasis of a best-cost provider.

Accepted Answer

The marketing emphasis of a low cost pro

Question 18

A focused low-cost strategy seeks to achieve competitive advantage by:

Accepted Answer

A)  outmatching competitors in offering niche members an absolute rock-bottom price. 
B)  delivering more value for the lesser money than other competitors. 
C)  performing the primary value chain activities at a lower cost per unit than can the industry's low-cost leaders. 
D)  dominating more market niches in the industry via a lower cost and a lower price than any other rival. 
E)  serving buyers in a narrow piece of the total market (target market niche)at a lower cost and lower price than rivals. 
A)  outmatching competitors in offering niche members an absolute rock-bottom price. 
B)  delivering more value for the lesser money than other competitors. 
C)  performing the primary value chain activities at a lower cost per unit than can the industry's low-cost leaders. 
D)  dominating more market niches in the industry via a lower cost and a lower price than any other rival. 
E)  serving buyers in a narrow piece of the total market (target market niche)at a lower cost and lower price than rivals.

Question 19

The objective of a best-cost provider strategy is to:

Accepted Answer

A)  deliver superior value to value-conscious buyers at a comparatively lower price than rivals. 
B)  offer buyers the industry's best-performing product at the best cost and best (lowest)price in the industry. 
C)  attract buyers on the basis of having the industry's overall best-performing product at a price that is slightly below the industry-average price. 
D)  out-compete rivals using low-cost provider strategies. 
E)  translate its best-cost status into achieving the highest profit margins of any firm in the industry. 
A)  deliver superior value to value-conscious buyers at a comparatively lower price than rivals. 
B)  offer buyers the industry's best-performing product at the best cost and best (lowest)price in the industry. 
C)  attract buyers on the basis of having the industry's overall best-performing product at a price that is slightly below the industry-average price. 
D)  out-compete rivals using low-cost provider strategies. 
E)  translate its best-cost status into achieving the highest profit margins of any firm in the industry.

Question 20

Describe the strategy of striving to be the industry's overall low-cost provider.What does a company have to do to achieve low-cost provider status?

Accepted Answer

The strategy of striving to be the indus

A low-cost provider's product does NOT have to always:

Low-cost leaders who have the lowest industry costs are likely to:

Brands create customer loyalty,which in turn:

While there are many routes to competitive advantage,the two biggest factors that distinguish one competitive strategy from another are:

Best-cost provider strategies are those that:

A ketchup manufacturer convinces a supplier who makes vinegar to set up a nearby plant.Which of the following benefits will the ketchup manufacturer be least assured of?

An organic foods manufacturer insists on portraying the cleanliness of its farms in its advertisements,charges a higher price for its products,and sells its products only through reputable distributors.What strategy is the manufacturer using to deliver superior value to customers?

Achieving a differentiation-based competitive advantage does NOT involve:

What strategy would you recommend for a small-sized company entering a highly segmented market,each segment with a complex set of needs and spending power?

A company attempting to be successful with a broad differentiation strategy has to:

The keys to maintaining a broad differentiation strategy are to:

Focused strategies keyed either to low cost or differentiation are especially appropriate for situations where:

What are the five generic competitive strategies? Briefly describe each one and identify the type of competitive advantage that each strategy is aimed at achieving.

Which of the following is NOT one of the ways managers can enhance differentiation based on value drivers?

Being the overall low-cost provider in an industry has the attractive advantage of:

Explain how the marketing emphasis of a low-cost provider differs from the marketing emphasis of a best-cost provider.

A focused low-cost strategy seeks to achieve competitive advantage by:

The objective of a best-cost provider strategy is to:

Describe the strategy of striving to be the industry's overall low-cost provider.What does a company have to do to achieve low-cost provider status?

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

A low-cost provider's product does NOT have to always:

Low-cost leaders who have the lowest industry costs are likely to:

Brands create customer loyalty,which in turn:

While there are many routes to competitive advantage,the two biggest factors that distinguish one competitive strategy from another are:

Best-cost provider strategies are those that:

A ketchup manufacturer convinces a supplier who makes vinegar to set up a nearby plant.Which of the following benefits will the ketchup manufacturer be least assured of?

An organic foods manufacturer insists on portraying the cleanliness of its farms in its advertisements,charges a higher price for its products,and sells its products only through reputable distributors.What strategy is the manufacturer using to deliver superior value to customers?

Achieving a differentiation-based competitive advantage does NOT involve:

What strategy would you recommend for a small-sized company entering a highly segmented market,each segment with a complex set of needs and spending power?

A company attempting to be successful with a broad differentiation strategy has to:

The keys to maintaining a broad differentiation strategy are to:

Focused strategies keyed either to low cost or differentiation are especially appropriate for situations where:

What are the five generic competitive strategies? Briefly describe each one and identify the type of competitive advantage that each strategy is aimed at achieving.

Which of the following is NOT one of the ways managers can enhance differentiation based on value drivers?

Being the overall low-cost provider in an industry has the attractive advantage of:

Explain how the marketing emphasis of a low-cost provider differs from the marketing emphasis of a best-cost provider.

A focused low-cost strategy seeks to achieve competitive advantage by:

The objective of a best-cost provider strategy is to:

Describe the strategy of striving to be the industry's overall low-cost provider.What does a company have to do to achieve low-cost provider status?

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