Question 1

The competitive advantage of a best-cost provider is:

Accepted Answer

A)  having the best value chain in the industry. 
B)  its brand name reputation. 
C)  its capability to incorporate upscale or attractive attributes into its product offering at lower costs than rivals. 
D)  a distinctive competence in delivering top-notch quality and customer service. 
E)  a distinctive competence in supply chain management. 
A)  having the best value chain in the industry. 
B)  its brand name reputation. 
C)  its capability to incorporate upscale or attractive attributes into its product offering at lower costs than rivals. 
D)  a distinctive competence in delivering top-notch quality and customer service. 
E)  a distinctive competence in supply chain management. C

Question 2

A competitive strategy predicated on low-cost leadership tends to work best when:

Accepted Answer

A)  there are widely varying needs and preferences among the various buyers of the product or service. 
B)  there are many market segments and market niches, such that it is feasible for a low-cost leader to dominate the niche where buyers want a budget-priced product. 
C)  price competition among rivals is especially vigorous and the offerings of rival firms are essentially identical, standardized, commodity-like products. 
D)  buyers prefer that the products/services of competing sellers have widely varying attributes and prices. 
E)  buyers have high switching costs and there is considerable diversity in how buyers use the product. 
A)  there are widely varying needs and preferences among the various buyers of the product or service. 
B)  there are many market segments and market niches, such that it is feasible for a low-cost leader to dominate the niche where buyers want a budget-priced product. 
C)  price competition among rivals is especially vigorous and the offerings of rival firms are essentially identical, standardized, commodity-like products. 
D)  buyers prefer that the products/services of competing sellers have widely varying attributes and prices. 
E)  buyers have high switching costs and there is considerable diversity in how buyers use the product. C

Question 3

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. A

Question 4

Opportunities to differentiate a company's product offering:

Accepted Answer

A)  are most reliably found in the R&D portion of the value chain. 
B)  are typically located in the sales and marketing portion of the value chain. 
C)  can exist in activities all along an industry's value chain. 
D)  usually are tied to product quality and customer service. 
E)  are most frequently attached to a company's manufacturing expertise and to its ability to achieve economies of scale in production. 
A)  are most reliably found in the R&D portion of the value chain. 
B)  are typically located in the sales and marketing portion of the value chain. 
C)  can exist in activities all along an industry's value chain. 
D)  usually are tied to product quality and customer service. 
E)  are most frequently attached to a company's manufacturing expertise and to its ability to achieve economies of scale in production.

Question 5

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 6

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 7

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.

Question 8

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 9

Which of the following is NOT true of a company that succeeds in differentiating its product offering from those of its rivals?

Accepted Answer

A)  It can avoid having to compete on the basis of simply a low price. 
B)  It commands a premium price for its product. 
C)  It usually increases unit sales. 
D)  It gains buyer loyalty to its brand. 
E)  It attracts mainly price-conscious buyers. 
A)  It can avoid having to compete on the basis of simply a low price. 
B)  It commands a premium price for its product. 
C)  It usually increases unit sales. 
D)  It gains buyer loyalty to its brand. 
E)  It attracts mainly price-conscious buyers.

Question 10

A strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or best-cost or focus/market niche strategy when:

Accepted Answer

A)  there are many ways to achieve product differentiation that buyers find appealing. 
B)  buyers use the product in a variety of different ways and have high switching costs in changing from one seller's product to another. 
C)  the offerings of rival firms are essentially identical, standardized, commodity-like products. 
D)  entry barriers are high and competition from substitutes is relatively weak. 
E)  the market is composed of many distinct segments with varying buyer needs and expectations. 
A)  there are many ways to achieve product differentiation that buyers find appealing. 
B)  buyers use the product in a variety of different ways and have high switching costs in changing from one seller's product to another. 
C)  the offerings of rival firms are essentially identical, standardized, commodity-like products. 
D)  entry barriers are high and competition from substitutes is relatively weak. 
E)  the market is composed of many distinct segments with varying buyer needs and expectations.

Question 11

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 attributes and beating rivals in meeting customer expectations on price. 
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 attributes and beating rivals in meeting customer expectations on price. 
E)  seeks to achieve the best costs by using the best operating practices and incorporating the best features and attributes.

Question 12

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 13

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 14

A differentiation-based competitive advantage:

Accepted Answer

A)  nearly always is attached to the quality and service aspects of a company's product offering. 
B)  usually is the result of highly effective marketing and advertising to enhance the brand, raise awareness, and build consistent customer experience. 
C)  requires developing at least one distinctive competence that buyers consider valuable. 
D)  hinges on a company's success in developing top-of-the-line product features that will command the highest price premium in the industry. 
E)  often hinges on incorporating features that raise the performance of the product or lower the buyer's overall costs of using the company's product, or enhances buyer satisfaction in intangible or noneconomic ways, or delivers value to customers by differentiating on the basis of competencies and capabilities that rivals can't match. 
A)  nearly always is attached to the quality and service aspects of a company's product offering. 
B)  usually is the result of highly effective marketing and advertising to enhance the brand, raise awareness, and build consistent customer experience. 
C)  requires developing at least one distinctive competence that buyers consider valuable. 
D)  hinges on a company's success in developing top-of-the-line product features that will command the highest price premium in the industry. 
E)  often hinges on incorporating features that raise the performance of the product or lower the buyer's overall costs of using the company's product, or enhances buyer satisfaction in intangible or noneconomic ways, or delivers value to customers by differentiating on the basis of competencies and capabilities that rivals can't match.

Question 15

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 16

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 17

Pursuing continuous quality improvement as a uniqueness factor is sound because it:

Accepted Answer

A)  can create differentiation even if little tangible differentiation exists otherwise. 
B)  bestows the first-mover-in-the-market advantage on companies practicing it. 
C)  can often reduce product defects and improve economy of use. 
D)  always provides a competitive advantage. 
E)  provides wider product variety and selection through product versioning. 
A)  can create differentiation even if little tangible differentiation exists otherwise. 
B)  bestows the first-mover-in-the-market advantage on companies practicing it. 
C)  can often reduce product defects and improve economy of use. 
D)  always provides a competitive advantage. 
E)  provides wider product variety and selection through product versioning.

Question 18

A production-based emphasis toward a low-cost provider strategy usually requires a company to strive for:

Accepted Answer

A)  product superiority. 
B)  continuous cost reductions without sacrificing acceptable quality and essential features. 
C)  small-scale production or custom-made products that match the tastes and requirements of niche members. 
D)  appealing features and better quality at lower costs than rivals. 
E)  whatever differentiating features buyers are willing to pay for. 
A)  product superiority. 
B)  continuous cost reductions without sacrificing acceptable quality and essential features. 
C)  small-scale production or custom-made products that match the tastes and requirements of niche members. 
D)  appealing features and better quality at lower costs than rivals. 
E)  whatever differentiating features buyers are willing to pay for.

Question 19

Broad differentiation strategies generally work best in market circumstances where:

Accepted Answer

A)  buyer needs and uses of a product are diverse and not fully satisfied by a standardized product. 
B)  most buyers have similar needs and use the product in the same ways. 
C)  the products of rivals are weakly differentiated and most competitors are resorting to clever advertising to try to set their product offerings apart. 
D)  buyers are price sensitive and product switching costs are quite low. 
E)  market competition revolves around slowly evolving product features. 
A)  buyer needs and uses of a product are diverse and not fully satisfied by a standardized product. 
B)  most buyers have similar needs and use the product in the same ways. 
C)  the products of rivals are weakly differentiated and most competitors are resorting to clever advertising to try to set their product offerings apart. 
D)  buyers are price sensitive and product switching costs are quite low. 
E)  market competition revolves around slowly evolving product features.

Question 20

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

The competitive advantage of a best-cost provider is:

A competitive strategy predicated on low-cost leadership tends to work best when:

Best-cost provider strategies are those that:

Opportunities to differentiate a company's product offering:

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?

The essence of a broad differentiation strategy is to:

Focusing carries several risks,one of which is the:

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

Which of the following is NOT true of a company that succeeds in differentiating its product offering from those of its rivals?

A strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or best-cost or focus/market niche strategy when:

A firm pursuing a best-cost provider strategy:

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

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

A differentiation-based competitive advantage:

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?

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

Pursuing continuous quality improvement as a uniqueness factor is sound because it:

A production-based emphasis toward a low-cost provider strategy usually requires a company to strive for:

Broad differentiation strategies generally work best in market circumstances where:

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

The competitive advantage of a best-cost provider is:

A competitive strategy predicated on low-cost leadership tends to work best when:

Best-cost provider strategies are those that:

Opportunities to differentiate a company's product offering:

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?

The essence of a broad differentiation strategy is to:

Focusing carries several risks,one of which is the:

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

Which of the following is NOT true of a company that succeeds in differentiating its product offering from those of its rivals?

A strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or best-cost or focus/market niche strategy when:

A firm pursuing a best-cost provider strategy:

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

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

A differentiation-based competitive advantage:

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?

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

Pursuing continuous quality improvement as a uniqueness factor is sound because it:

A production-based emphasis toward a low-cost provider strategy usually requires a company to strive for:

Broad differentiation strategies generally work best in market circumstances where:

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