Question 1

The major avenues for achieving a cost advantage over rivals include

Accepted Answer

A)  revamping the firm's value chain to eliminate or bypass some cost-producing activities and/or out-managing rivals in the efficiency with which value chain activities are performed. 
B)  having a management team that is highly skilled in cutting costs. 
C)  being a first-mover in adopting the latest state-of-the-art technologies, especially those relating to low-cost manufacture. 
D)  outsourcing high-cost activities to cost-efficient vendors. 
E)  paying lower wages and salaries than rivals. 
A)  revamping the firm's value chain to eliminate or bypass some cost-producing activities and/or out-managing rivals in the efficiency with which value chain activities are performed. 
B)  having a management team that is highly skilled in cutting costs. 
C)  being a first-mover in adopting the latest state-of-the-art technologies, especially those relating to low-cost manufacture. 
D)  outsourcing high-cost activities to cost-efficient vendors. 
E)  paying lower wages and salaries than rivals.

Question 2

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

Accepted Answer

A)  Trying to strongly differentiate the company's product from those of rivals rather than be content with weak product differentiation 
B)  Over-differentiating so that the features and attributes incorporated exceed buyer needs and requirements 
C)  Trying to charge too high a price premium for the differentiating features 
D)  Differentiating on features or attributes that rivals can easily copy 
E)  Overspending on efforts to differentiate the company's product offering 
A)  Trying to strongly differentiate the company's product from those of rivals rather than be content with weak product differentiation 
B)  Over-differentiating so that the features and attributes incorporated exceed buyer needs and requirements 
C)  Trying to charge too high a price premium for the differentiating features 
D)  Differentiating on features or attributes that rivals can easily copy 
E)  Overspending on efforts to differentiate the company's product offering

Question 3

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 4

Achieving a differentiation-based competitive advantage can involve

Accepted Answer

A)  incorporating product attributes and user features that lower a buyer's overall cost of using the product. 
B)  incorporating features that raise the performance a buyer gets from using the product. 
C)  incorporating features that enhance buyer satisfaction in non-economic or intangible ways. 
D)  delivering value to customers via competencies and competitive capabilities that rivals don't have or can't afford to match. 
E)  All of these are viable ways of building competitive advantage via differentiation. 
A)  incorporating product attributes and user features that lower a buyer's overall cost of using the product. 
B)  incorporating features that raise the performance a buyer gets from using the product. 
C)  incorporating features that enhance buyer satisfaction in non-economic or intangible ways. 
D)  delivering value to customers via competencies and competitive capabilities that rivals don't have or can't afford to match. 
E)  All of these are viable ways of building competitive advantage via differentiation.

Question 5

The production emphasis of a company pursuing a broad differentiation strategy usually involves

Accepted Answer

A)  eliminating cost reduction and decreasing quality and essential features to boost profitability. 
B)  strong efforts to be a leader in manufacturing process innovation. 
C)  efforts to build-in whatever differentiating features that buyers are willing to pay for and striving for product superiority. 
D)  aggressive pursuit of economies of scale and experience curve effects. 
E)  developing a distinctive competence in zero-defect manufacturing techniques. 
A)  eliminating cost reduction and decreasing quality and essential features to boost profitability. 
B)  strong efforts to be a leader in manufacturing process innovation. 
C)  efforts to build-in whatever differentiating features that buyers are willing to pay for and striving for product superiority. 
D)  aggressive pursuit of economies of scale and experience curve effects. 
E)  developing a distinctive competence in zero-defect manufacturing techniques.

Question 6

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 quality/service/features/performance attributes and beating their expectations on price (given what rivals are charging for much the same attributes). 
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 quality/service/features/performance attributes and beating their expectations on price (given what rivals are charging for much the same attributes). 
E)  seeks to achieve the best costs by using the best operating practices and incorporating the best features and attributes.

Question 7

Easy-to-copy differentiating features

Accepted Answer

A)  cannot produce sustainable competitive advantage. 
B)  seldom are perceived by buyers as having much value. 
C)  tend to give buyers a high degree of power in bargaining for a lower price. 
D)  should never be incorporated in a company's product offering if its differentiation strategy is to succeed. 
E)  lead to vigorous price competition. 
A)  cannot produce sustainable competitive advantage. 
B)  seldom are perceived by buyers as having much value. 
C)  tend to give buyers a high degree of power in bargaining for a lower price. 
D)  should never be incorporated in a company's product offering if its differentiation strategy is to succeed. 
E)  lead to vigorous price competition.

Question 8

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 9

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 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 money.

Question 10

Which of the following is not one of the ways that a company can achieve a cost advantage by revamping its value chain?

Accepted Answer

A)  Cutting out distributors and dealers by selling direct to customers 
B)  Replacing certain value chain activities with faster and cheaper online technology 
C)  Increasing production capacity and then striving hard to operate at full capacity 
D)  Relocating facilities so as to curb the need for shipping and handling activities 
E)  Streamlining operations by eliminating low value-added or unnecessary work steps and activities 
A)  Cutting out distributors and dealers by selling direct to customers 
B)  Replacing certain value chain activities with faster and cheaper online technology 
C)  Increasing production capacity and then striving hard to operate at full capacity 
D)  Relocating facilities so as to curb the need for shipping and handling activities 
E)  Streamlining operations by eliminating low value-added or unnecessary work steps and activities

Question 11

Which of the following is not an action that a company can take to do a better job than rivals of performing value chain activities more cost-effectively?

Accepted Answer

A)  Striving to capture all available economies of scale and learning/experience curve effects 
B)  Trying to operate facilities at full capacity 
C)  Adopting labor-saving operating methods 
D)  Improving supply chain efficiency 
E)  Redesigning products to eliminate features that might have market appeal, but excessively increase production costs 
A)  Striving to capture all available economies of scale and learning/experience curve effects 
B)  Trying to operate facilities at full capacity 
C)  Adopting labor-saving operating methods 
D)  Improving supply chain efficiency 
E)  Redesigning products to eliminate features that might have market appeal, but excessively increase production costs

Question 12

Which of the following is not one of the five generic types of competitive strategy?

Accepted Answer

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

Question 13

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

Accepted Answer

The answer of Explain how the keys to sustaining a...

Question 14

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 such high switching costs). 
B)  giving the firm a very appealing brand image. 
C)  putting a firm in a position to win the business of price sensitive customers, set the floor on market price, and still earn a profit. 
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 key suppliers. 
A)  building strong customer loyalty and locking customers into its product (because customers have such high switching costs). 
B)  giving the firm a very appealing brand image. 
C)  putting a firm in a position to win the business of price sensitive customers, set the floor on market price, and still earn a profit. 
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 key suppliers.

Question 15

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

Accepted Answer

The answer of What are the distinctive features of a...

Question 16

A company's competitive strategy deals with

Accepted Answer

A)  management's game plan for competing successfully-the specific efforts to please customers, offensive and defensive moves to counter the maneuvers of rivals, the responses to current market conditions, and the initiatives undertaken to improve the company's market position. 
B)  what its strategy will be in such functional areas as R&D, production, sales and marketing, distribution, finance and accounting, and so on. 
C)  its efforts to change its position on the industry's strategic group map. 
D)  its plans for entering into strategic alliances, utilizing mergers or acquisitions to strengthen its market position, outsourcing some in-house activities to outside specialists, and integrating forward or backward. 
E)  its plans for overcoming the five competitive forces. 
A)  management's game plan for competing successfully-the specific efforts to please customers, offensive and defensive moves to counter the maneuvers of rivals, the responses to current market conditions, and the initiatives undertaken to improve the company's market position. 
B)  what its strategy will be in such functional areas as R&D, production, sales and marketing, distribution, finance and accounting, and so on. 
C)  its efforts to change its position on the industry's strategic group map. 
D)  its plans for entering into strategic alliances, utilizing mergers or acquisitions to strengthen its market position, outsourcing some in-house activities to outside specialists, and integrating forward or backward. 
E)  its plans for overcoming the five competitive forces.

Question 17

Which of the following is not one of the pitfalls of a low-cost provider strategy?

Accepted Answer

A)  Overly aggressive price-cutting 
B)  Trying to set the industry's price ceiling 
C)  Not emphasizing avenues of cost advantage that can be kept proprietary or that relegate rivals to playing catch up 
D)  Becoming too fixated on cost reduction 
E)  Having the basis for the firm's cost advantage undermined by cost-saving technological breakthroughs that can be readily adopted by rival firms 
A)  Overly aggressive price-cutting 
B)  Trying to set the industry's price ceiling 
C)  Not emphasizing avenues of cost advantage that can be kept proprietary or that relegate rivals to playing catch up 
D)  Becoming too fixated on cost reduction 
E)  Having the basis for the firm's cost advantage undermined by cost-saving technological breakthroughs that can be readily adopted by rival firms

Question 18

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

Accepted Answer

A)  outmatch the resource strengths of both low-cost providers and differentiators. 
B)  position the company outside the competitive arena of low-cost producers and differentiators. 
C)  meet or exceed buyer expectations on key quality/performance/features/service attributes and beat their expectations on price (given what rivals are charging for much the same attributes). 
D)  deliver superior value to buyers by doing such a good job of cost control that it ends up with the best cost (as compared to rivals) in performing each activity in its value chain. 
E)  identify and concentrate on those differentiating features that are inexpensive to incorporate. 
A)  outmatch the resource strengths of both low-cost providers and differentiators. 
B)  position the company outside the competitive arena of low-cost producers and differentiators. 
C)  meet or exceed buyer expectations on key quality/performance/features/service attributes and beat their expectations on price (given what rivals are charging for much the same attributes). 
D)  deliver superior value to buyers by doing such a good job of cost control that it ends up with the best cost (as compared to rivals) in performing each activity in its value chain. 
E)  identify and concentrate on those differentiating features that are inexpensive to incorporate.

Question 19

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 answer of What are the five generic competitive strategies?...

Question 20

For a best-cost provider strategy to be successful,a company must have

Accepted Answer

A)  excellent marketing and sales skills in convincing buyers to pay a premium price for the attributes/features incorporated in its product. 
B)  resource strengths and competitive capabilities that allow it to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes. 
C)  access to greater learning/experience curve effects and scale economies than rivals. 
D)  one of the best-known and most respected brand names in the industry. 
E)  a short, low-cost value chain. 
A)  excellent marketing and sales skills in convincing buyers to pay a premium price for the attributes/features incorporated in its product. 
B)  resource strengths and competitive capabilities that allow it to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes. 
C)  access to greater learning/experience curve effects and scale economies than rivals. 
D)  one of the best-known and most respected brand names in the industry. 
E)  a short, low-cost value chain.

The major avenues for achieving a cost advantage over rivals include

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

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

Achieving a differentiation-based competitive advantage can involve

The production emphasis of a company pursuing a broad differentiation strategy usually involves

A firm pursuing a best-cost provider strategy

Easy-to-copy differentiating features

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

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

Which of the following is not one of the ways that a company can achieve a cost advantage by revamping its value chain?

Which of the following is not an action that a company can take to do a better job than rivals of performing value chain activities more cost-effectively?

Which of the following is not one of the five generic types of competitive strategy?

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

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

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

A company's competitive strategy deals with

Which of the following is not one of the pitfalls of a low-cost provider strategy?

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

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.

For a best-cost provider strategy to be successful,a company must have

What Is Strategy and Why Is It Important

Charting a Companys Direction: Vision and Mission, Objectives, and Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources, Capabilities, and Competitiveness

Strengthening a Companys Competitive Position: Strategic Moves, timing, and Scope of Operation

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

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Exam 5: The Five Generic Competitive Strategies: Which One to Employ

The major avenues for achieving a cost advantage over rivals include

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

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

Achieving a differentiation-based competitive advantage can involve

The production emphasis of a company pursuing a broad differentiation strategy usually involves

A firm pursuing a best-cost provider strategy

Easy-to-copy differentiating features

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

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

Which of the following is not one of the ways that a company can achieve a cost advantage by revamping its value chain?

Which of the following is not an action that a company can take to do a better job than rivals of performing value chain activities more cost-effectively?

Which of the following is not one of the five generic types of competitive strategy?

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

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

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

A company's competitive strategy deals with

Which of the following is not one of the pitfalls of a low-cost provider strategy?

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

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.

For a best-cost provider strategy to be successful,a company must have

What Is Strategy and Why Is It Important

Charting a Companys Direction: Vision and Mission, Objectives, and Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources, Capabilities, and Competitiveness

Strengthening a Companys Competitive Position: Strategic Moves, timing, and Scope of Operation

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

Filters