Question 1

A competitive strategy of striving to be the low-cost provider is particularly attractive when:

Accepted Answer

A)  buyers are not very price-conscious. 
B)  most rivals are trying to be best-cost providers. 
C)  there are many ways to achieve product differentiation that have value to buyers. 
D)  most buyers use the product in much the same ways, with user requirements calling for a standardized product. 
E)  most rivals are pursuing focused low-cost or focused differentiation strategies. 
A)  buyers are not very price-conscious. 
B)  most rivals are trying to be best-cost providers. 
C)  there are many ways to achieve product differentiation that have value to buyers. 
D)  most buyers use the product in much the same ways, with user requirements calling for a standardized product. 
E)  most rivals are pursuing focused low-cost or focused differentiation strategies.

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

The five generic competitive strategies

Question 3

Approaches to enhancing differentiation through changes in the value chain do NOT include:

Accepted Answer

A)  coordinating with retailers to enhance the buying experience and building a company's image. 
B)  coordinating with suppliers to speed up new product development cycles. 
C)  coordinating with distributors or shippers to lower shipping costs. 
D)  collaborating with suppliers to improve many dimensions affecting product features and quality. 
E)  coordinating with employees to create a greater incentive systems to encourage worker productivity 
A)  coordinating with retailers to enhance the buying experience and building a company's image. 
B)  coordinating with suppliers to speed up new product development cycles. 
C)  coordinating with distributors or shippers to lower shipping costs. 
D)  collaborating with suppliers to improve many dimensions affecting product features and quality. 
E)  coordinating with employees to create a greater incentive systems to encourage worker productivity

Question 4

The big danger or risk of a best-cost provider strategy is:

Accepted Answer

A)  that buyers will be highly skeptical about paying a relatively low price for upscale attributes/features. 
B)  not establishing strong alliances and partnerships with key suppliers. 
C)  that rivals with low-cost provider strategies will be able to steal away some customers on the basis of a lower price, and high-end differentiators will be able to steal away customers with the appeal of better product attributes. 
D)  that it will be unable to achieve top-notch quality at a rock-bottom cost. 
E)  becoming too highly integrated and not relying enough on outsourcing. 
A)  that buyers will be highly skeptical about paying a relatively low price for upscale attributes/features. 
B)  not establishing strong alliances and partnerships with key suppliers. 
C)  that rivals with low-cost provider strategies will be able to steal away some customers on the basis of a lower price, and high-end differentiators will be able to steal away customers with the appeal of better product attributes. 
D)  that it will be unable to achieve top-notch quality at a rock-bottom cost. 
E)  becoming too highly integrated and not relying enough on outsourcing.

Question 5

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

Accepted Answer

A)  underpricing rivals and attracting quality-sensitive buyers in great enough numbers. 
B)  maintaining the present price, and using the lower-cost edge to earn a higher profit margin on each unit sold. 
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 to build strong customer loyalty. 
E)  out-producing rivals and thus having more available units for sale. 
A)  underpricing rivals and attracting quality-sensitive buyers in great enough numbers. 
B)  maintaining the present price, and using the lower-cost edge to earn a higher profit margin on each unit sold. 
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 to build strong customer loyalty. 
E)  out-producing rivals and thus having more available units for sale.

Question 6

A low-cost leader's basis for competitive advantage is:

Accepted Answer

A)  lowest possible prices for comparable products. 
B)  a low-cost/moderate price approach to gain the biggest market share. 
C)  high buyer switching costs. 
D)  meaningful lower overall costs than rivals on comparable products. 
E)  higher unit sales than rivals. 
A)  lowest possible prices for comparable products. 
B)  a low-cost/moderate price approach to gain the biggest market share. 
C)  high buyer switching costs. 
D)  meaningful lower overall costs than rivals on comparable products. 
E)  higher unit sales than rivals.

Question 7

Which of the following is NOT one of the ways managers can enhance differentiation based on value drivers?

Accepted Answer

A)  Striving to create superior product features, design, and performance 
B)  Striving for innovation and technological advances 
C)  Pursuing continuous quality improvement 
D)  Increasing the intensity of marketing, brand building, and sales activities 
E)  Seeking out low-quality inputs 
A)  Striving to create superior product features, design, and performance 
B)  Striving for innovation and technological advances 
C)  Pursuing continuous quality improvement 
D)  Increasing the intensity of marketing, brand building, and sales activities 
E)  Seeking out low-quality inputs

Question 8

A low-cost provider's product does NOT have to always:

Accepted Answer

A)  contain enough attributes to be attractive to prospective buyers. 
B)  suggest strong rather than weak product differentiation. 
C)  signal value to buyers. 
D)  provide high margins per unit sold to bring in enough unit sales. 
E)  be valuable and appealing to a wide range of buyers. 
A)  contain enough attributes to be attractive to prospective buyers. 
B)  suggest strong rather than weak product differentiation. 
C)  signal value to buyers. 
D)  provide high margins per unit sold to bring in enough unit sales. 
E)  be valuable and appealing to a wide range of buyers.

Question 9

Explain how the keys to sustaining a broad differentiation strategy differ from the keys to sustaining a best-cost producer strategy.

Accepted Answer

The keys to sustaining a broad different

A competitive strategy of striving to be the low-cost provider is particularly attractive when:

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.

Approaches to enhancing differentiation through changes in the value chain do NOT include:

The big danger or risk of a best-cost provider strategy is:

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

A low-cost leader's basis for competitive advantage is:

Which of the following is NOT one of the ways managers can enhance differentiation based on value drivers?

A low-cost provider's product does NOT have to always:

Explain how the keys to sustaining a broad differentiation strategy differ from the keys to sustaining a best-cost producer strategy.

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

A competitive strategy of striving to be the low-cost provider is particularly attractive when:

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.

Approaches to enhancing differentiation through changes in the value chain do NOT include:

The big danger or risk of a best-cost provider strategy is:

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

A low-cost leader's basis for competitive advantage is:

Which of the following is NOT one of the ways managers can enhance differentiation based on value drivers?

A low-cost provider's product does NOT have to always:

Explain how the keys to sustaining a broad differentiation strategy differ from the keys to sustaining a best-cost producer strategy.

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