Question 1

Which of the following is NOT one of the four basic routes to achieving a differentiation-based competitive advantage?

Accepted Answer

A)  Delivering value to customers via the company's resources, competencies, and value chain activities that rivals don't have or can't afford to match and are well-matched to the requirements of the strategy 
B)  Incorporating tangible features that raise product performance and increase customer satisfaction with the product 
C)  Incorporating product attributes and user features that lower the buyer's overall costs of using the company's product 
D)  Appealing to buyers who are sophisticated and shop hard for the best, stand-out differentiating attributes 
E)  Incorporating features that enhance buyer satisfaction in intangible or noneconomic ways 
A)  Delivering value to customers via the company's resources, competencies, and value chain activities that rivals don't have or can't afford to match and are well-matched to the requirements of the strategy 
B)  Incorporating tangible features that raise product performance and increase customer satisfaction with the product 
C)  Incorporating product attributes and user features that lower the buyer's overall costs of using the company's product 
D)  Appealing to buyers who are sophisticated and shop hard for the best, stand-out differentiating attributes 
E)  Incorporating features that enhance buyer satisfaction in intangible or noneconomic ways

Question 2

Each of the following is likely to help a company's low-cost provider strategy succeed EXCEPT:

Accepted Answer

A)  resources and capabilities to keep costs below those of its competitors. 
B)  cost-effective management of value chain activities better than rivals. 
C)  effective leveraging of cost drivers. 
D)  having the innovative capability to bypass certain value chain activities being performed by rivals. 
E)  capabilities to simultaneously deliver lower cost and higher-quality/differentiated features. 
A)  resources and capabilities to keep costs below those of its competitors. 
B)  cost-effective management of value chain activities better than rivals. 
C)  effective leveraging of cost drivers. 
D)  having the innovative capability to bypass certain value chain activities being performed by rivals. 
E)  capabilities to simultaneously deliver lower cost and higher-quality/differentiated features.

Question 3

Which of the following would NOT lead to cost savings?

Accepted Answer

A)  A company that sets up its own direct sales force 
B)  A company that eliminates low-value-added work steps 
C)  A company that motivates employees through incentives 
D)  A company that conducts sales operations at its website 
E)  A company that sources the best from suppliers across the world 
A)  A company that sets up its own direct sales force 
B)  A company that eliminates low-value-added work steps 
C)  A company that motivates employees through incentives 
D)  A company that conducts sales operations at its website 
E)  A company that sources the best from suppliers across the world

Question 4

The marketing emphasis of a company pursuing a broad differentiation strategy usually is to:

Accepted Answer

A)  under-price rival brands with comparable features. 
B)  tout differentiating features and charge a premium price that more than covers the extra costs of differentiating features. 
C)  out-advertise rivals and make frequent use of discount coupons. 
D)  emphasize selling directly to end-users and promoting personalized customer service. 
E)  communicate the product's ability to serve the customer's every need. 
A)  under-price rival brands with comparable features. 
B)  tout differentiating features and charge a premium price that more than covers the extra costs of differentiating features. 
C)  out-advertise rivals and make frequent use of discount coupons. 
D)  emphasize selling directly to end-users and promoting personalized customer service. 
E)  communicate the product's ability to serve the customer's every need.

Question 5

What market conditions and circumstances make a low-cost provider strategy attractive? What are the pitfalls in pursuing a low-cost provider strategy? What can go wrong?

Accepted Answer

Market conditions and circumstances that

Question 6

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 7

For a company's competitive strategy to succeed in delivering favorable performance and the intended competitive edge over rivals,it has to be well-matched to a company's internal situation and underpinned by an appropriate set of resources,know-how,and competitive capabilities.True or false? Explain your answer.

Accepted Answer

The statement is true.To succeed in empl

Question 8

The underlying criteria of a best-cost provider strategy usually is found in the ability of a company to:

Accepted Answer

A)  offer better goods at attractive prices. 
B)  create attributes that appeal specifically to niche members. 
C)  lower overall costs more than rivals in serving niche members. 
D)  offer buyers something attractively different from competitors' offerings. 
E)  offer the best product at the industry's lowest possible price. 
A)  offer better goods at attractive prices. 
B)  create attributes that appeal specifically to niche members. 
C)  lower overall costs more than rivals in serving niche members. 
D)  offer buyers something attractively different from competitors' offerings. 
E)  offer the best product at the industry's lowest possible price.

Question 9

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 10

A focused differentiation strategy aims at securing competitive advantage by:

Accepted Answer

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

Question 11

Explain how the strategic target of a low-cost provider differs from the strategic target of a best-cost provider.

Accepted Answer

The strategic target of a low-cost provi

Question 12

A pitfall to avoid in pursuing a differentiation strategy is:

Accepted Answer

A)  trying to differentiate on the basis of attributes or features that are easily and quickly copied. 
B)  choosing a product offering that supports buyers' indifference to rival brands' offerings. 
C)  charging a premium price for the differentiating features. 
D)  meeting and exceeding the meaningful gaps in quality, performance, service, and other attractive differentiating attributes offered by rivals. 
E)  spending on activities to differentiate the company's product to enhance profitability. 
A)  trying to differentiate on the basis of attributes or features that are easily and quickly copied. 
B)  choosing a product offering that supports buyers' indifference to rival brands' offerings. 
C)  charging a premium price for the differentiating features. 
D)  meeting and exceeding the meaningful gaps in quality, performance, service, and other attractive differentiating attributes offered by rivals. 
E)  spending on activities to differentiate the company's product to enhance profitability.

Question 13

The risks of a focused strategy based on either low-cost or differentiation include the:

Accepted Answer

A)  chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace. 
B)  potential for the preferences and needs of niche members to shift over time toward product attributes desired by buyers in the mainstream portion of the market. 
C)  potential for the segment to be highly vulnerable to economic cycles. 
D)  potential for segment growth to race beyond the production or service capabilities of incumbent firms. 
E)  potential for the segment to become too specialized for other multi-segmented rivals to enter. 
A)  chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace. 
B)  potential for the preferences and needs of niche members to shift over time toward product attributes desired by buyers in the mainstream portion of the market. 
C)  potential for the segment to be highly vulnerable to economic cycles. 
D)  potential for segment growth to race beyond the production or service capabilities of incumbent firms. 
E)  potential for the segment to become too specialized for other multi-segmented rivals to enter.

Question 14

A drink manufacturer finds setting up a plant to make its own bottle caps expensive and technically difficult.Which of the following will be most helpful in solving the manufacturer's problem?

Accepted Answer

A)  Outsourcing 
B)  Achieving economies of scale 
C)  Lowering input costs 
D)  Increasing bargaining power 
E)  Going for a vertical integration with a distributor 
A)  Outsourcing 
B)  Achieving economies of scale 
C)  Lowering input costs 
D)  Increasing bargaining power 
E)  Going for a vertical integration with a distributor

Question 15

Which of the following is NOT one of the ways that a company can achieve cost-efficient management of its value chain activities?

Accepted Answer

A)  Striving to ensure a corporate diversity policy is introduced with effective controls 
B)  Using the company's strong bargaining power vis-à-vis suppliers or others in the value chain 
C)  Being alert to the cost advantages of outsourcing or vertical integration 
D)  Striving to capture all available economies of scale 
E)  Motivating employees through incentives and company culture 
A)  Striving to ensure a corporate diversity policy is introduced with effective controls 
B)  Using the company's strong bargaining power vis-à-vis suppliers or others in the value chain 
C)  Being alert to the cost advantages of outsourcing or vertical integration 
D)  Striving to capture all available economies of scale 
E)  Motivating employees through incentives and company culture

Question 16

What are the distinctive features of a focused differentiation strategy? How is it different from a broad differentiation strategy?

Accepted Answer

In a focused differentiation strategy th

Question 17

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 18

Which of the following is NOT an action that a company should take to perform value chain activities more cost-effectively?

Accepted Answer

A)  Striving to capture all available economies of scale and taking advantage of experience and learning-curve effects 
B)  Trying to operate facilities at full capacity 
C)  Adopting labor-saving operating methods 
D)  Improving supply chain efficiency 
E)  Over-differentiating so that product features exceed the needs of most buyers 
A)  Striving to capture all available economies of scale and taking advantage of experience and learning-curve effects 
B)  Trying to operate facilities at full capacity 
C)  Adopting labor-saving operating methods 
D)  Improving supply chain efficiency 
E)  Over-differentiating so that product features exceed the needs of most buyers

Question 19

Which of the following is NOT one of the ways that a company that a non-capital-intensive can achieve a cost advantage by revamping its value chain?

Accepted Answer

A)  Creating a direct sales force and bypassing activities and costs of distributors and dealers 
B)  Conducting sales operations at the company's website 
C)  Increasing production capacity and then striving hard to operate at full capacity 
D)  Relocating facilities so as to curb the cost for shipping and handling activities 
E)  Streamlining operations by eliminating low value-added or unnecessary work steps and activities 
A)  Creating a direct sales force and bypassing activities and costs of distributors and dealers 
B)  Conducting sales operations at the company's website 
C)  Increasing production capacity and then striving hard to operate at full capacity 
D)  Relocating facilities so as to curb the cost for shipping and handling activities 
E)  Streamlining operations by eliminating low value-added or unnecessary work steps and activities

Question 20

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.

Which of the following is NOT one of the four basic routes to achieving a differentiation-based competitive advantage?

Each of the following is likely to help a company's low-cost provider strategy succeed EXCEPT:

Which of the following would NOT lead to cost savings?

The marketing emphasis of a company pursuing a broad differentiation strategy usually is to:

What market conditions and circumstances make a low-cost provider strategy attractive? What are the pitfalls in pursuing a low-cost provider strategy? What can go wrong?

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

The underlying criteria of a best-cost provider strategy usually is found in the ability of a company to:

The generic types of competitive strategies include:

A focused differentiation strategy aims at securing competitive advantage by:

Explain how the strategic target of a low-cost provider differs from the strategic target of a best-cost provider.

A pitfall to avoid in pursuing a differentiation strategy is:

The risks of a focused strategy based on either low-cost or differentiation include the:

A drink manufacturer finds setting up a plant to make its own bottle caps expensive and technically difficult.Which of the following will be most helpful in solving the manufacturer's problem?

Which of the following is NOT one of the ways that a company can achieve cost-efficient management of its value chain activities?

What are the distinctive features of a focused differentiation strategy? How is it different from a broad differentiation strategy?

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

Which of the following is NOT an action that a company should take to perform value chain activities more cost-effectively?

Which of the following is NOT one of the ways that a company that a non-capital-intensive can achieve a cost advantage by revamping its value chain?

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

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

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Exam 5: The Five Generic Competitive Strategies

Which of the following is NOT one of the four basic routes to achieving a differentiation-based competitive advantage?

Each of the following is likely to help a company's low-cost provider strategy succeed EXCEPT:

Which of the following would NOT lead to cost savings?

The marketing emphasis of a company pursuing a broad differentiation strategy usually is to:

What market conditions and circumstances make a low-cost provider strategy attractive? What are the pitfalls in pursuing a low-cost provider strategy? What can go wrong?

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

The underlying criteria of a best-cost provider strategy usually is found in the ability of a company to:

The generic types of competitive strategies include:

A focused differentiation strategy aims at securing competitive advantage by:

Explain how the strategic target of a low-cost provider differs from the strategic target of a best-cost provider.

A pitfall to avoid in pursuing a differentiation strategy is:

The risks of a focused strategy based on either low-cost or differentiation include the:

A drink manufacturer finds setting up a plant to make its own bottle caps expensive and technically difficult.Which of the following will be most helpful in solving the manufacturer's problem?

Which of the following is NOT one of the ways that a company can achieve cost-efficient management of its value chain activities?

What are the distinctive features of a focused differentiation strategy? How is it different from a broad differentiation strategy?

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

Which of the following is NOT an action that a company should take to perform value chain activities more cost-effectively?

Which of the following is NOT one of the ways that a company that a non-capital-intensive can achieve a cost advantage by revamping its value chain?

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

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