Exam 5: Business-Level Strategy: Creating and Sustaining Competitive Advantages

Rapid changes in technology, globalization, and actions by rivals cannot erode company advantages.

An overall ______ position enables a firm to achieve above-average returns because it protects firms against powerful buyers.

A market that mainly competes on the basis of price and has stagnant growth is characteristic of what life cycle stage?

Research has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform

Global logistics firms such as DHL Supply Chain and Global Forwarding or C.H. Robinson Worldwide compete using an overall cost leadership strategy in primary activities such as

Outright sales or sale and leaseback free up considerable cash and improve returns. This is an example of which turnaround strategy used by successful companies?

Mass customization enables manufacturers to be more responsive to customer demands for high quality products.

Research shows that which one of the following is not a strategy used by firms engaged in successful turnarounds?

As markets mature,

Which of the following is not a potential pitfall of a differentiation strategy?

An overall low-cost position enables a firm to achieve ______ returns despite strong competition.

In the __________ stage of the industry life cycle, there are few segments, the emphasis on process design is low, and the major functional areas of concern are general management and finance.

An overall low-cost position protects a firm against rivalry from competitors, because higher costs allow a firm to earn returns even if its competitors eroded their profits through intense rivalry.

A firm can attain an overall cost leadership position by using automated technology to reduce scrappage rates.

Convincing rivals not to enter a price war, protection from customer pressure to lower prices, and the ability to better withstand cost increases from suppliers characterize which type of competitive strategy?

A business that strives for a low-cost advantage must attain a(n) _______ cost advantage over rivals.

A low-cost position permits buyers to exert power to drive ____ prices only to the level of the next most efficient producer.

An overall low-cost position protects a firm against rivalry from competitors, because _________ allow a firm to earn returns even if its competitors eroded their profits through intense rivalry.

Few turnarounds require firms to analyze both the external and internal environments relevant to their firm.

If a car manufacturer focuses a lot on downstream activities such as warranty fulfillment and financing operations, but also considers the differentiation and cost of the cars themselves, the resulting strategy is likely to be a failed strategy.