Question 1

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 such 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,set the floor on market price,and still earn a profit. 
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 key suppliers. 
A)  building strong customer loyalty and locking customers into its product (because customers have such 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,set the floor on market price,and still earn a profit. 
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 key suppliers. C

Question 2

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

No Answer

Question 3

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

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 competitive advantage linked to low costs or differentiation. 
C)  whether a company can achieve lower costs than rivals and whether the company is pursuing the industry's sales and market share leader role. 
D)  finding effective and efficient ways to strengthen the company's competitive assets and to reduce its competitive liabilities. 
E)  getting in the best strategic group and establishing a dominating role. 
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 competitive advantage linked to low costs or differentiation. 
C)  whether a company can achieve lower costs than rivals and whether the company is pursuing the industry's sales and market share leader role. 
D)  finding effective and efficient ways to strengthen the company's competitive assets and to reduce its competitive liabilities. 
E)  getting in the best strategic group and establishing a dominating role. B

Question 4

A low-cost leader translates its low-cost advantage over rivals into superior profit performance by:

Accepted Answer

A)  cutting its price to levels significantly below the prices of rivals. 
B)  either using its lower-cost edge to under-price competitors and attract price-sensitive buyers in great enough numbers to increase total profits or maintain the present price,and using the lower-cost edge to earn a higher profit margin on each unit sold,thereby raising total profits and overall return on investment. 
C)  going all out to use its cost advantage to capture a dominant share of the market. 
D)  spending heavily on advertising to promote its cost advantage and the fact that it charges the lowest prices in the industry it can,and then using this reputation for low prices to build very strong customer loyalty,gain repeat sales year after year,and earn sustained profits over the long term. 
E)  out-producing rivals and thus having more units available to sell. 
A)  cutting its price to levels significantly below the prices of rivals. 
B)  either using its lower-cost edge to under-price competitors and attract price-sensitive buyers in great enough numbers to increase total profits or maintain the present price,and using the lower-cost edge to earn a higher profit margin on each unit sold,thereby raising total profits and overall return on investment. 
C)  going all out to use its cost advantage to capture a dominant share of the market. 
D)  spending heavily on advertising to promote its cost advantage and the fact that it charges the lowest prices in the industry it can,and then using this reputation for low prices to build very strong customer loyalty,gain repeat sales year after year,and earn sustained profits over the long term. 
E)  out-producing rivals and thus having more units available to sell.

Question 5

What is the primary target market for a best cost-provider?

Accepted Answer

A)  Value hunting buyers 
B)  Price-conscious buyers 
C)  Best-price driven buyers 
D)  Value-conscious buyers 
E)  Brand-conscious buyer 
A)  Value hunting buyers 
B)  Price-conscious buyers 
C)  Best-price driven buyers 
D)  Value-conscious buyers 
E)  Brand-conscious buyer

Question 6

Success in achieving a low-cost edge over rivals comes from:

Accepted Answer

A)  strong efforts to be a leader in manufacturing process innovation. 
B)  communicating the product's ability to serve the customer's every need. 
C)  employing an aggressive offense to gain market share or a conservative defense to 
D)  protecting its market position. 
E)  out-managing rivals in finding ways to perform value chain activities faster,more accurately,and more cost efficiently. 
A)  strong efforts to be a leader in manufacturing process innovation. 
B)  communicating the product's ability to serve the customer's every need. 
C)  employing an aggressive offense to gain market share or a conservative defense to 
D)  protecting its market position. 
E)  out-managing rivals in finding ways to perform value chain activities faster,more accurately,and more cost efficiently.

Question 7

Uniqueness drivers are a:

Accepted Answer

A)  set of factors (analogous to cost drivers)that are particularly effective in having a strong differentiation effect. 
B)  company's hidden success factor for creating over-the-top product features that will command the highest price in the industry. 
C)  technique for easily identifying factors that validate the firm's performance. 
D)  set of factors that verify the unique nature of the firm. 
E)  All of these. 
A)  set of factors (analogous to cost drivers)that are particularly effective in having a strong differentiation effect. 
B)  company's hidden success factor for creating over-the-top product features that will command the highest price in the industry. 
C)  technique for easily identifying factors that validate the firm's performance. 
D)  set of factors that verify the unique nature of the firm. 
E)  All of these.

Question 8

A focused differentiation strategy aims at securing competitive advantage:

Accepted Answer

A)  by providing niche members with a top-of-the-line product at a premium price. 
B)  by catering to buyers looking for an upscale product at an attractively low price. 
C)  with a product offering carefully designed to appeal to the unique preferences and needs of a narrow,well-defined group of buyers. 
D)  by developing product attributes that no other company in the industry has. 
E)  by convincing a narrow,well-defined group of buyers that the company has a truly world-class product. 
A)  by providing niche members with a top-of-the-line product at a premium price. 
B)  by catering to buyers looking for an upscale product at an attractively low price. 
C)  with a product offering carefully designed to appeal to the unique preferences and needs of a narrow,well-defined group of buyers. 
D)  by developing product attributes that no other company in the industry has. 
E)  by convincing a narrow,well-defined group of buyers that the company has a truly world-class product.

Question 9

A company's competitive strategy deals with:

Accepted Answer

A)  the specifics of management's game plan for competing successfully-its specific efforts to please customers,strengthen its market position,counter the maneuvers of rivals,respond to shifting market conditions,and achieve a particular kind of competitive advantage. 
B)  what its strategy will be in such functional areas as R&D,production,sales and marketing,distribution,finance and accounting,and so on. 
C)  its efforts to change its position on the industry's strategic group map. 
D)  its plans for entering into strategic alliances,utilizing mergers or acquisitions to strengthen its market position,outsourcing some in-house activities to outside specialists,and integrating forward or backward. 
E)  its plans for overcoming the five competitive forces. 
A)  the specifics of management's game plan for competing successfully-its specific efforts to please customers,strengthen its market position,counter the maneuvers of rivals,respond to shifting market conditions,and achieve a particular kind of competitive advantage. 
B)  what its strategy will be in such functional areas as R&D,production,sales and marketing,distribution,finance and accounting,and so on. 
C)  its efforts to change its position on the industry's strategic group map. 
D)  its plans for entering into strategic alliances,utilizing mergers or acquisitions to strengthen its market position,outsourcing some in-house activities to outside specialists,and integrating forward or backward. 
E)  its plans for overcoming the five competitive forces.

Question 10

A company that succeeds in differentiating its product offering from those of its rivals can usually:

Accepted Answer

A)  avoid having to compete on the basis of simply a low price. 
B)  command a premium price for its product. 
C)  increase unit sales. 
D)  gain buyer loyalty to its brand. 
E)  All of these. 
A)  avoid having to compete on the basis of simply a low price. 
B)  command a premium price for its product. 
C)  increase unit sales. 
D)  gain buyer loyalty to its brand. 
E)  All of these.

Question 11

A company's strategy is likely to succeed if:

Accepted Answer

A)  it is predicated on leveraging a competitively valuable collection of resources and capabilities that match the strategy. 
B)  the company has the resources and capabilities needed to keep its costs competitive. 
C)  it has the expertise to cost-effectively manage value chain activities over rivals. 
D)  it has the innovative capabilities to bypass certain value chain activities of rivals. 
E)  All of these. 
A)  it is predicated on leveraging a competitively valuable collection of resources and capabilities that match the strategy. 
B)  the company has the resources and capabilities needed to keep its costs competitive. 
C)  it has the expertise to cost-effectively manage value chain activities over rivals. 
D)  it has the innovative capabilities to bypass certain value chain activities of rivals. 
E)  All of these.

Question 12

What are the distinctive features of a broad differentiation strategy? Under what circumstances is a broad differentiation strategy appealing?

Accepted Answer

The answer of What are the distinctive features of a...

Question 13

A focused low-cost strategy can lead to attractive competitive advantage when:

Accepted Answer

A)  buyers are looking for the best value at the best price. 
B)  buyers are looking for a budget-priced product. 
C)  buyers are price sensitive and are attracted to brands with low switching costs. 
D)  demand in the target market niche is growing rapidly and a company can achieve a big enough volume to fully capture all the available scale economies. 
E)  a firm can lower costs significantly by limiting its customer base to a well-defined buyer segment. 
A)  buyers are looking for the best value at the best price. 
B)  buyers are looking for a budget-priced product. 
C)  buyers are price sensitive and are attracted to brands with low switching costs. 
D)  demand in the target market niche is growing rapidly and a company can achieve a big enough volume to fully capture all the available scale economies. 
E)  a firm can lower costs significantly by limiting its customer base to a well-defined buyer segment.

Question 14

Whether a broad differentiation strategy ends up enhancing company 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 command a higher price or produce sufficiently bigger unit sales to cover the added 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 having 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 command a higher price or produce sufficiently bigger unit sales to cover the added 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 having the best price.

Question 15

To profitably employ a best-cost provider strategy,a company must have the resources and capabilities to:

Accepted Answer

A)  sell a product with the best cost at the best price. 
B)  have the best cost (as compared to rivals)for each activity in the industry's value chain. 
C)  provide buyers with the best attributes at the best cost. 
D)  incorporate attractive or upscale attributes into its product offering at a lower cost than rivals. 
E)  do a better job than rivals of adopting the best operating practices. 
A)  sell a product with the best cost at the best price. 
B)  have the best cost (as compared to rivals)for each activity in the industry's value chain. 
C)  provide buyers with the best attributes at the best cost. 
D)  incorporate attractive or upscale attributes into its product offering at a lower cost than rivals. 
E)  do a better job than rivals of adopting the best operating practices.

Question 16

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

Accepted Answer

A)  requires that management undertake formal planning sessions with functional departments to ensure productivity improvement. 
B)  requires the identification of strengths and weaknesses within the company. 
C)  requires matching corporate identity with the corporate culture in order to integrate effort and build sales momentum. 
D)  requires performing value chain activities differently than rivals and building competitively valuable resources and capabilities that rivals cannot readily match or trump. 
E)  All of these. 
A)  requires that management undertake formal planning sessions with functional departments to ensure productivity improvement. 
B)  requires the identification of strengths and weaknesses within the company. 
C)  requires matching corporate identity with the corporate culture in order to integrate effort and build sales momentum. 
D)  requires performing value chain activities differently than rivals and building competitively valuable resources and capabilities that rivals cannot readily match or trump. 
E)  All of these.

Question 17

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)  All of these. 
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)  All of these.

Question 18

Approaches to enhancing differentiation through changes in the value chain include:

Accepted Answer

A)  coordinating with channel allies to enhance customer perception of value. 
B)  coordinating with suppliers to better address customer needs. 
C)  working closely on those activities performed by upstream suppliers and downstream by distributors and retailers to enhance customer value proposition. 
D)  collaborating with suppliers to improve many dimensions affecting product features and quality. 
E)  All of these. 
A)  coordinating with channel allies to enhance customer perception of value. 
B)  coordinating with suppliers to better address customer needs. 
C)  working closely on those activities performed by upstream suppliers and downstream by distributors and retailers to enhance customer value proposition. 
D)  collaborating with suppliers to improve many dimensions affecting product features and quality. 
E)  All of these.

Question 19

A firm pursuing a best-cost provider strategy:

Accepted Answer

A)  seeks to be the low-cost provider in the largest and fastest growing (or best)market segment. 
B)  tries to have the best cost (as compared to rivals)for each activity in the industry's value chain. 
C)  tries to outcompete a low-cost provider by attracting buyers on the basis of charging the best price. 
D)  seeks to deliver superior value to buyers by satisfying their expectations on key quality/service/features/performance attributes and beating their expectations on price (given what rivals are charging for much the same attributes). 
E)  seeks to achieve the best costs by using the best operating practices and incorporating the best features and attributes. 
A)  seeks to be the low-cost provider in the largest and fastest growing (or best)market segment. 
B)  tries to have the best cost (as compared to rivals)for each activity in the industry's value chain. 
C)  tries to outcompete a low-cost provider by attracting buyers on the basis of charging the best price. 
D)  seeks to deliver superior value to buyers by satisfying their expectations on key quality/service/features/performance attributes and beating their expectations on price (given what rivals are charging for much the same attributes). 
E)  seeks to achieve the best costs by using the best operating practices and incorporating the best features and attributes.

Question 20

What are the distinctive features of a best-cost provider strategy? Under what circumstances is a best-cost provider strategy appealing?

Accepted Answer

The answer of What are the distinctive features of a...

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

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.

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

A low-cost leader translates its low-cost advantage over rivals into superior profit performance by:

What is the primary target market for a best cost-provider?

Success in achieving a low-cost edge over rivals comes from:

Uniqueness drivers are a:

A focused differentiation strategy aims at securing competitive advantage:

A company's competitive strategy deals with:

A company that succeeds in differentiating its product offering from those of its rivals can usually:

A company's strategy is likely to succeed if:

What are the distinctive features of a broad differentiation strategy? Under what circumstances is a broad differentiation strategy appealing?

A focused low-cost strategy can lead to attractive competitive advantage when:

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

To profitably employ a best-cost provider strategy,a company must have the resources and capabilities to:

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

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

Approaches to enhancing differentiation through changes in the value chain include:

A firm pursuing a best-cost provider strategy:

What are the distinctive features of a best-cost provider strategy? Under what circumstances is a best-cost provider strategy appealing?

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, and Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources, Capabilities, and Competitiveness

Strengthening a Companys Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

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Exam 5: The Five Generic Competitive Strategies: Which One to Employ

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

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.

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

A low-cost leader translates its low-cost advantage over rivals into superior profit performance by:

What is the primary target market for a best cost-provider?

Success in achieving a low-cost edge over rivals comes from:

Uniqueness drivers are a:

A focused differentiation strategy aims at securing competitive advantage:

A company's competitive strategy deals with:

A company that succeeds in differentiating its product offering from those of its rivals can usually:

A company's strategy is likely to succeed if:

What are the distinctive features of a broad differentiation strategy? Under what circumstances is a broad differentiation strategy appealing?

A focused low-cost strategy can lead to attractive competitive advantage when:

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

To profitably employ a best-cost provider strategy,a company must have the resources and capabilities to:

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

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

Approaches to enhancing differentiation through changes in the value chain include:

A firm pursuing a best-cost provider strategy:

What are the distinctive features of a best-cost provider strategy? Under what circumstances is a best-cost provider strategy appealing?

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, and Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources, Capabilities, and Competitiveness

Strengthening a Companys Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

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