Question 1

Success with a best-cost provider strategy designed to outcompete high-end differentiators requires:

Accepted Answer

A)  achieving significantly lower costs in providing the upscale features. 
B)  providing significantly better product attributes in order to justify a price above what low-cost leaders are charging. 
C)  matching the company's resources and capabilities to a low-cost provider status. 
D)  motivating buyers to purchase upscale features that match rivals. 
E)  achieving the lowest costs in the industry. 
A)  achieving significantly lower costs in providing the upscale features. 
B)  providing significantly better product attributes in order to justify a price above what low-cost leaders are charging. 
C)  matching the company's resources and capabilities to a low-cost provider status. 
D)  motivating buyers to purchase upscale features that match rivals. 
E)  achieving the lowest costs in the industry.

Question 2

Which of the following is NOT one of the pitfalls of pursuing a differentiation strategy?

Accepted Answer

A)  Over-emphasizing efforts to strongly differentiate the company's product from those of rivals rather than being content with weak product differentiation 
B)  Offering trivial improvements in quality, service, or performance features 
C)  Overcharging for the differentiating features 
D)  Adding so many frills and extra features that the product exceeds the needs of buyers 
E)  Overspending on efforts to differentiate the company's product offering 
A)  Over-emphasizing efforts to strongly differentiate the company's product from those of rivals rather than being content with weak product differentiation 
B)  Offering trivial improvements in quality, service, or performance features 
C)  Overcharging for the differentiating features 
D)  Adding so many frills and extra features that the product exceeds the needs of buyers 
E)  Overspending on efforts to differentiate the company's product offering

Question 3

An automotive manufacturer sells a limited number of high-end,custom-built cars,using technologically advanced power systems.What strategy is the manufacturer using to gain competitive advantage?

Accepted Answer

A)  A low-cost provider strategy 
B)  A broad differentiation strategy 
C)  A focused low-cost strategy 
D)  A focused differentiation strategy 
E)  A best-cost provider strategy 
A)  A low-cost provider strategy 
B)  A broad differentiation strategy 
C)  A focused low-cost strategy 
D)  A focused differentiation strategy 
E)  A best-cost provider strategy

Question 4

A broad differentiation strategy generally produces the best results in situations where:

Accepted Answer

A)  buyer brand loyalty is low. 
B)  few rival firms are following a similar differentiation approach. 
C)  new and improved products are introduced only infrequently. 
D)  most rivals are pursuing a differentiation strategy and are seeking to differentiate their products on most of the same features and attributes. 
E)  perceived value of a product is not of great importance. 
A)  buyer brand loyalty is low. 
B)  few rival firms are following a similar differentiation approach. 
C)  new and improved products are introduced only infrequently. 
D)  most rivals are pursuing a differentiation strategy and are seeking to differentiate their products on most of the same features and attributes. 
E)  perceived value of a product is not of great importance.

Question 5

The chief difference between a low-cost provider strategy and a focused low-cost strategy is:

Accepted Answer

A)  whether the product is strongly differentiated or weakly differentiated from rivals. 
B)  the degree of bargaining power that buyers have. 
C)  the size of the buyer group that a company is trying to appeal to. 
D)  the type of value chain being used to achieve a low-cost competitive advantage. 
E)  the number of upscale attributes incorporated into the product offering. 
A)  whether the product is strongly differentiated or weakly differentiated from rivals. 
B)  the degree of bargaining power that buyers have. 
C)  the size of the buyer group that a company is trying to appeal to. 
D)  the type of value chain being used to achieve a low-cost competitive advantage. 
E)  the number of upscale attributes incorporated into the product offering.

Question 6

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

Accepted Answer

A)  that management undertake formal planning sessions with functional departments to ensure productivity improvement. 
B)  the identification of strengths and weaknesses within the company. 
C)  matching corporate identity with the corporate culture in order to integrate effort and build sales momentum. 
D)  performing value chain activities differently than rivals and building competitively valuable resources and capabilities that rivals cannot readily match. 
E)  constant efforts to thwart entry of new rivals and their attempts to create differentiated products with unit costs above price premium. 
A)  that management undertake formal planning sessions with functional departments to ensure productivity improvement. 
B)  the identification of strengths and weaknesses within the company. 
C)  matching corporate identity with the corporate culture in order to integrate effort and build sales momentum. 
D)  performing value chain activities differently than rivals and building competitively valuable resources and capabilities that rivals cannot readily match. 
E)  constant efforts to thwart entry of new rivals and their attempts to create differentiated products with unit costs above price premium.

Question 7

Which of the following generic types of competitive strategies is typically the "best" strategy for a company to employ?

Accepted Answer

A)  A strategy that seeks to underprice rivals on comparable products that attract a broad spectrum of buyers 
B)  A strategy that seeks to differentiate product offerings from rivals by offering superior attributes that attract a broad spectrum of buyers 
C)  A strategy that concentrates on a narrow buyer segment and outcompetes rivals by offering niche members customized attributes 
D)  A strategy that concentrates on value-conscious buyers and outcompetes rivals by offering products at attractive prices 
E)  A strategy that is customized to fit the macro-environment and industry and employs resources and capabilities that rivals have trouble duplicating 
A)  A strategy that seeks to underprice rivals on comparable products that attract a broad spectrum of buyers 
B)  A strategy that seeks to differentiate product offerings from rivals by offering superior attributes that attract a broad spectrum of buyers 
C)  A strategy that concentrates on a narrow buyer segment and outcompetes rivals by offering niche members customized attributes 
D)  A strategy that concentrates on value-conscious buyers and outcompetes rivals by offering products at attractive prices 
E)  A strategy that is customized to fit the macro-environment and industry and employs resources and capabilities that rivals have trouble duplicating

Question 8

Perceived value and signaling value are often an important part of a successful differentiation strategy because:

Accepted Answer

A)  of the standardization of buyer needs and preferences. 
B)  buyers seldom will pay for value they don't perceive, no matter how real the value of the differentiating extras may be. 
C)  buyer satisfaction cannot be achieved until a product's value is promoted through clever ads. 
D)  differentiation is all about selling products to sophisticated buyers. 
E)  there are no other ways to differentiate a product. 
A)  of the standardization of buyer needs and preferences. 
B)  buyers seldom will pay for value they don't perceive, no matter how real the value of the differentiating extras may be. 
C)  buyer satisfaction cannot be achieved until a product's value is promoted through clever ads. 
D)  differentiation is all about selling products to sophisticated buyers. 
E)  there are no other ways to differentiate a product.

Question 9

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 10

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 11

A route to take in developing a differentiation advantage includes:

Accepted Answer

A)  incorporating product attributes and user features that raise the buyer's overall costs, but keep the price minimal. 
B)  incorporating tangible features that add functionality, increase customer satisfaction with the product specifications, functions, and styling. 
C)  signaling value by targeting sophisticated buyers. 
D)  incorporating intangible features that enhance buyer satisfaction in economic ways. 
E)  emphasizing high quality and performance of products through a standard and simple, no-fuss packaging. 
A)  incorporating product attributes and user features that raise the buyer's overall costs, but keep the price minimal. 
B)  incorporating tangible features that add functionality, increase customer satisfaction with the product specifications, functions, and styling. 
C)  signaling value by targeting sophisticated buyers. 
D)  incorporating intangible features that enhance buyer satisfaction in economic ways. 
E)  emphasizing high quality and performance of products through a standard and simple, no-fuss packaging.

Question 12

What sets focused (or market niche)strategies apart from low-cost leadership and broad differentiation strategies is:

Accepted Answer

A)  the extra attention paid to top-notch product performance and product quality. 
B)  their concentrated attention on serving the needs of buyers in a narrow piece of the overall market. 
C)  greater opportunity for competitive advantage. 
D)  their suitability for market situations where most industry rivals have weakly differentiated products. 
E)  their objective of delivering more value for the least money. 
A)  the extra attention paid to top-notch product performance and product quality. 
B)  their concentrated attention on serving the needs of buyers in a narrow piece of the overall market. 
C)  greater opportunity for competitive advantage. 
D)  their suitability for market situations where most industry rivals have weakly differentiated products. 
E)  their objective of delivering more value for the least money.

Question 13

Achieving a sure cost advantage over rivals entails:

Accepted Answer

A)  concentrating on the primary activities portion of the value chain and outsourcing all support activities. 
B)  being a first-mover in pursuing backward and forward integration and controlling as much of the industry value chain as possible. 
C)  selling a mostly standard product and increasing the scale of operation. 
D)  minimizing R&D expenses and paying below-average wages and salaries to conserve on labor costs. 
E)  producing a standard product, redesigning the product infrequently, and having minimal advertising. 
A)  concentrating on the primary activities portion of the value chain and outsourcing all support activities. 
B)  being a first-mover in pursuing backward and forward integration and controlling as much of the industry value chain as possible. 
C)  selling a mostly standard product and increasing the scale of operation. 
D)  minimizing R&D expenses and paying below-average wages and salaries to conserve on labor costs. 
E)  producing a standard product, redesigning the product infrequently, and having minimal advertising.

Question 14

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

Accepted Answer

Best-cost provider strategies stake out

Question 15

An example of how companies can revamp their value chain to reduce costs is to:

Accepted Answer

A)  have suppliers locate their plants close to companies' own facilities. 
B)  continue to utilize traditional methods of distribution and sales. 
C)  not make any changes in product manufacturing but change end distribution methods. 
D)  increase extra services to increase staffing requirements. 
E)  facilitate the learning curve by providing superior training to new employees. 
A)  have suppliers locate their plants close to companies' own facilities. 
B)  continue to utilize traditional methods of distribution and sales. 
C)  not make any changes in product manufacturing but change end distribution methods. 
D)  increase extra services to increase staffing requirements. 
E)  facilitate the learning curve by providing superior training to new employees.

Question 16

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

Accepted Answer

Differentiation strategies are attractiv

Question 17

A government oil company is having trouble with the private refineries and transporters to whom it delegates important stages of production.It decides to become more active along the entire supply chain from locating deposits to retailing the fuel to consumers.Which of the following does it intend to achieve?

Accepted Answer

A)  Outsourcing 
B)  Economies of scale 
C)  Increase inputs 
D)  Advanced production technology 
E)  Vertical integration 
A)  Outsourcing 
B)  Economies of scale 
C)  Increase inputs 
D)  Advanced production technology 
E)  Vertical integration

Question 18

The marketing emphasis of a company pursuing a focused low-cost provider strategy usually is to:

Accepted Answer

A)  tout the company's lower prices. 
B)  tout the lack of frills and extras. 
C)  out-advertise rivals and make frequent use of discount coupons. 
D)  communicate the attractive features of a budget-priced product offering that fits niche members' expectations. 
E)  communicate the product's ability to serve the customer's every need. 
A)  tout the company's lower prices. 
B)  tout the lack of frills and extras. 
C)  out-advertise rivals and make frequent use of discount coupons. 
D)  communicate the attractive features of a budget-priced product offering that fits niche members' expectations. 
E)  communicate the product's ability to serve the customer's every need.

Question 19

What are the distinctive features of a focused low-cost strategy? How does it differ from a low-cost leadership strategy?

Accepted Answer

A focused low-cost aims at securing a co

Question 20

The target market of a best-cost provider is:

Accepted Answer

A)  value-conscious buyers. 
B)  brand-conscious buyers. 
C)  price-sensitive buyers. 
D)  middle-income buyers. 
E)  young adults (in the 18-35 age group). 
A)  value-conscious buyers. 
B)  brand-conscious buyers. 
C)  price-sensitive buyers. 
D)  middle-income buyers. 
E)  young adults (in the 18-35 age group).

Success with a best-cost provider strategy designed to outcompete high-end differentiators requires:

Which of the following is NOT one of the pitfalls of pursuing a differentiation strategy?

An automotive manufacturer sells a limited number of high-end,custom-built cars,using technologically advanced power systems.What strategy is the manufacturer using to gain competitive advantage?

A broad differentiation strategy generally produces the best results in situations where:

The chief difference between a low-cost provider strategy and a focused low-cost strategy is:

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

Which of the following generic types of competitive strategies is typically the "best" strategy for a company to employ?

Perceived value and signaling value are often an important part of a successful differentiation strategy because:

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

The keys to maintaining a broad differentiation strategy are to:

A route to take in developing a differentiation advantage includes:

What sets focused (or market niche)strategies apart from low-cost leadership and broad differentiation strategies is:

Achieving a sure cost advantage over rivals entails:

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

An example of how companies can revamp their value chain to reduce costs is to:

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

The marketing emphasis of a company pursuing a focused low-cost provider strategy usually is to:

What are the distinctive features of a focused low-cost strategy? How does it differ from a low-cost leadership strategy?

The target market of a best-cost provider is:

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

Success with a best-cost provider strategy designed to outcompete high-end differentiators requires:

Which of the following is NOT one of the pitfalls of pursuing a differentiation strategy?

An automotive manufacturer sells a limited number of high-end,custom-built cars,using technologically advanced power systems.What strategy is the manufacturer using to gain competitive advantage?

A broad differentiation strategy generally produces the best results in situations where:

The chief difference between a low-cost provider strategy and a focused low-cost strategy is:

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

Which of the following generic types of competitive strategies is typically the "best" strategy for a company to employ?

Perceived value and signaling value are often an important part of a successful differentiation strategy because:

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

The keys to maintaining a broad differentiation strategy are to:

A route to take in developing a differentiation advantage includes:

What sets focused (or market niche)strategies apart from low-cost leadership and broad differentiation strategies is:

Achieving a sure cost advantage over rivals entails:

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

An example of how companies can revamp their value chain to reduce costs is to:

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

The marketing emphasis of a company pursuing a focused low-cost provider strategy usually is to:

What are the distinctive features of a focused low-cost strategy? How does it differ from a low-cost leadership strategy?

The target market of a best-cost provider is:

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