Question 1

The pitfalls of a differentiation strategy include

Accepted Answer

A)  trying to differentiate on the basis of attributes or features that are easily copied. 
B)  choosing to differentiate on the basis of attributes that buyers do not perceive as valuable or worth paying for. 
C)  trying to charge too high a price premium for the differentiating features. 
D)  being timid and not striving to open up meaningful gaps in quality,service,or performance features relative to the products of rivals. 
E)  All of these choices are correct. 
A)  trying to differentiate on the basis of attributes or features that are easily copied. 
B)  choosing to differentiate on the basis of attributes that buyers do not perceive as valuable or worth paying for. 
C)  trying to charge too high a price premium for the differentiating features. 
D)  being timid and not striving to open up meaningful gaps in quality,service,or performance features relative to the products of rivals. 
E)  All of these choices are correct. E

Question 2

The chief difference between a low-cost leader 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 production methods 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 production methods being used to achieve a low-cost competitive advantage. 
E)  the number of upscale attributes incorporated into the product offering. C

Question 3

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 A

Question 4

A company that succeeds in differentiating its product offering from those of its rivals can usually

Accepted Answer

A)  avoid having to compete on the basis of simply a low price. 
B)  charge a price premium for its product (because buyers see its differentiating features as worth something extra). 
C)  increase unit sales (because of the attraction of its differentiating product attributes). 
D)  gain buyer loyalty to its brand (because some customers will have a strong preference for the company's differentiating features). 
E)  All of these choices are correct. 
A)  avoid having to compete on the basis of simply a low price. 
B)  charge a price premium for its product (because buyers see its differentiating features as worth something extra). 
C)  increase unit sales (because of the attraction of its differentiating product attributes). 
D)  gain buyer loyalty to its brand (because some customers will have a strong preference for the company's differentiating features). 
E)  All of these choices are correct.

Question 5

A company's competitive strategy deals with

Accepted Answer

A)  management's game plan for securing a competitive advantage relative to rivals. 
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)  All of these choices are correct. 
A)  management's game plan for securing a competitive advantage relative to rivals. 
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)  All of these choices are correct.

Question 6

A competitive strategy to be the low-cost provider in an industry works well when

Accepted Answer

A)  price competition among rival sellers is especially vigorous. 
B)  commodity-based product prevails and minimal differentiation exists. 
C)  buyers incur low costs in switching their purchases from one seller or brand to another. 
D)  industry newcomers use low introductory prices to attract buyers and build a customer base. 
E)  All of these choices are correct. 
A)  price competition among rival sellers is especially vigorous. 
B)  commodity-based product prevails and minimal differentiation exists. 
C)  buyers incur low costs in switching their purchases from one seller or brand to another. 
D)  industry newcomers use low introductory prices to attract buyers and build a customer base. 
E)  All of these choices are correct.

Question 7

The major avenues for achieving a cost advantage over rivals include

Accepted Answer

A)  eliminating or curbing nonessential cost-producing activities and performing essential value chain activities more cost-effectively that rivals. 
B)  having a management team that accepts below-market salaries. 
C)  being a first mover in adopting the latest state-of-the-art technologies,especially those relating to low-cost manufacturing. 
D)  outsourcing high-cost activities to offshore vendors. 
E)  paying lower wages to hourly workers than what rivals are paying workers. 
A)  eliminating or curbing nonessential cost-producing activities and performing essential value chain activities more cost-effectively that rivals. 
B)  having a management team that accepts below-market salaries. 
C)  being a first mover in adopting the latest state-of-the-art technologies,especially those relating to low-cost manufacturing. 
D)  outsourcing high-cost activities to offshore vendors. 
E)  paying lower wages to hourly workers than what rivals are paying workers.

Question 8

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 9

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

Accepted Answer

A)  overly aggressive price cutting 
B)  using a cost-based advantage to improve the company's bargaining position with high-volume buyers 
C)  using approaches to reducing costs that can be easily copied by rivals 
D)  cutting prices more than the size of a company's cost advantage 
E)  becoming so fixated on cost reductions that products become too features-poor 
A)  overly aggressive price cutting 
B)  using a cost-based advantage to improve the company's bargaining position with high-volume buyers 
C)  using approaches to reducing costs that can be easily copied by rivals 
D)  cutting prices more than the size of a company's cost advantage 
E)  becoming so fixated on cost reductions that products become too features-poor

Question 10

A firm pursuing a best-cost provider strategy

Accepted Answer

A)  seeks to offer more value-adding features than the industry's low-cost providers and lower prices than those pursuing differentiation. 
B)  achieves competitive advantage because its operating activities are "best-in-class" or "best-in-world." 
C)  tries to have the best cost (as compared to rivals) for each activity in the industry's value chain. 
D)  opts for a "middle of the road" strategic approach that attempts to satisfy the product or service needs of consumers with average household incomes. 
E)  follows a hybrid strategy based upon superior resources and a narrow market niche. 
A)  seeks to offer more value-adding features than the industry's low-cost providers and lower prices than those pursuing differentiation. 
B)  achieves competitive advantage because its operating activities are "best-in-class" or "best-in-world." 
C)  tries to have the best cost (as compared to rivals) for each activity in the industry's value chain. 
D)  opts for a "middle of the road" strategic approach that attempts to satisfy the product or service needs of consumers with average household incomes. 
E)  follows a hybrid strategy based upon superior resources and a narrow market niche.

Question 11

Which one of the following does not represent market circumstances that make a focused low-cost or focused differentiation strategy attractive?

Accepted Answer

A)  when it is costly or difficult for multisegment competitors to meet the specialized needs of the target market niche and at the same time satisfy the expectations of their mainstream customers 
B)  when the industry has many different segments and market niches,thereby allowing a focuser to pick an attractive niche suited to its resource strengths and capabilities 
C)  when industry leaders have chosen not to compete in the niche 
D)  when the target market niche is big enough to be profitable and offers good growth potential 
E)  when buyers are not strongly brand loyal and a large number of other rivals are attempting to specialize in the same target segment 
A)  when it is costly or difficult for multisegment competitors to meet the specialized needs of the target market niche and at the same time satisfy the expectations of their mainstream customers 
B)  when the industry has many different segments and market niches,thereby allowing a focuser to pick an attractive niche suited to its resource strengths and capabilities 
C)  when industry leaders have chosen not to compete in the niche 
D)  when the target market niche is big enough to be profitable and offers good growth potential 
E)  when buyers are not strongly brand loyal and a large number of other rivals are attempting to specialize in the same target segment

Question 12

A company's biggest vulnerability in employing a best-cost provider strategy is

Accepted Answer

A)  relying too heavily on outsourcing. 
B)  getting squeezed between firms employing low-cost provider strategies and those using high-end differentiation strategies. 
C)  getting trapped in a price war with low-cost leaders. 
D)  being timid in cutting its prices far enough below high-end differentiators to win away many of their customers. 
E)  not having a sustainable distinctive competence in cost reduction. 
A)  relying too heavily on outsourcing. 
B)  getting squeezed between firms employing low-cost provider strategies and those using high-end differentiation strategies. 
C)  getting trapped in a price war with low-cost leaders. 
D)  being timid in cutting its prices far enough below high-end differentiators to win away many of their customers. 
E)  not having a sustainable distinctive competence in cost reduction.

Question 13

Broad differentiation strategies are well suited for market conditions where

Accepted Answer

A)  there are many ways to differentiate the product or service and many buyers perceive these differences as having value. 
B)  most buyers have the same needs and use the product in the same ways. 
C)  buyers are susceptible to clever advertising. 
D)  barriers to entry are high and suppliers have a low degree of bargaining power. 
E)  price competition is especially vigorous. 
A)  there are many ways to differentiate the product or service and many buyers perceive these differences as having value. 
B)  most buyers have the same needs and use the product in the same ways. 
C)  buyers are susceptible to clever advertising. 
D)  barriers to entry are high and suppliers have a low degree of bargaining power. 
E)  price competition is especially vigorous.

Question 14

Examples of important cost drivers in a company's value chain do not include

Accepted Answer

A)  input costs. 
B)  capacity utilization. 
C)  learning and experience. 
D)  production technology and design. 
E)  customer service. 
A)  input costs. 
B)  capacity utilization. 
C)  learning and experience. 
D)  production technology and design. 
E)  customer service.

Question 15

While there are many routes to competitive advantage,they all involve

Accepted Answer

A)  building a brand name image that buyers trust. 
B)  delivering superior value to a broad or narrow market of buyers in ways rivals cannot readily match. 
C)  achieving lower costs than rivals and becoming the industry's sales and market share leader. 
D)  finding effective and efficient ways to strengthen the company's competitive assets and to reduce its competitive liabilities. 
E)  getting in the best strategic group and dominating it. 
A)  building a brand name image that buyers trust. 
B)  delivering superior value to a broad or narrow market of buyers in ways rivals cannot readily match. 
C)  achieving lower costs than rivals and becoming the industry's sales and market share leader. 
D)  finding effective and efficient ways to strengthen the company's competitive assets and to reduce its competitive liabilities. 
E)  getting in the best strategic group and dominating it.

Question 16

Broad differentiation strategies generally work best in market circumstances where

Accepted Answer

A)  buyer needs and preferences are too diverse to be fully satisfied by a standardized product. 
B)  most buyers have similar needs and use the product in similar 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 buying switching costs are quite low. 
E)  the five competitive forces are strong. 
A)  buyer needs and preferences are too diverse to be fully satisfied by a standardized product. 
B)  most buyers have similar needs and use the product in similar 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 buying switching costs are quite low. 
E)  the five competitive forces are strong.

Question 17

Easy-to-copy differentiating features

Accepted Answer

A)  do not offer the promise of sustainable competitive advantage. 
B)  are less expensive to integrate into a product or service offering. 
C)  tend to create as much value for consumers as difficult-to-copy differentiating features. 
D)  should be patented before other companies follow suit. 
E)  lead to vigorous price competition. 
A)  do not offer the promise of sustainable competitive advantage. 
B)  are less expensive to integrate into a product or service offering. 
C)  tend to create as much value for consumers as difficult-to-copy differentiating features. 
D)  should be patented before other companies follow suit. 
E)  lead to vigorous price competition.

Question 18

The objective of competitive strategy is to

Accepted Answer

A)  provide detail to the company's business model. 
B)  build competitive advantage in the marketplace by giving buyers superior value relative to the offerings of rival sellers. 
C)  get the company into the best strategic group and then dominate it. 
D)  establish a competitively powerful value chain. 
E)  grow revenues at a faster annual rate than rivals are able to grow their revenues. 
A)  provide detail to the company's business model. 
B)  build competitive advantage in the marketplace by giving buyers superior value relative to the offerings of rival sellers. 
C)  get the company into the best strategic group and then dominate it. 
D)  establish a competitively powerful value chain. 
E)  grow revenues at a faster annual rate than rivals are able to grow their revenues.

Question 19

A broad differentiation strategy works best in situations characterized by

Accepted Answer

A)  slow-paced technological change and infrequent new or improved product introductions. 
B)  similar buyer needs and uses of the product. 
C)  low switching costs to rival brands incurred by buyers. 
D)  low bargaining power and frequent purchases by buyers. 
E)  fast-paced technological change and rapidly evolving product features that drive competition. 
A)  slow-paced technological change and infrequent new or improved product introductions. 
B)  similar buyer needs and uses of the product. 
C)  low switching costs to rival brands incurred by buyers. 
D)  low bargaining power and frequent purchases by buyers. 
E)  fast-paced technological change and rapidly evolving product features that drive competition.

Question 20

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)  Eliminating 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)  Eliminating 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.

The pitfalls of a differentiation strategy include

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

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

A company that succeeds in differentiating its product offering from those of its rivals can usually

A company's competitive strategy deals with

A competitive strategy to be the low-cost provider in an industry works well when

The major avenues for achieving a cost advantage over rivals include

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.

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

A firm pursuing a best-cost provider strategy

Which one of the following does not represent market circumstances that make a focused low-cost or focused differentiation strategy attractive?

A company's biggest vulnerability in employing a best-cost provider strategy is

Broad differentiation strategies are well suited for market conditions where

Examples of important cost drivers in a company's value chain do not include

While there are many routes to competitive advantage,they all involve

Broad differentiation strategies generally work best in market circumstances where

Easy-to-copy differentiating features

The objective of competitive strategy is to

A broad differentiation strategy works best in situations characterized by

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

Strategy,Business Models, and Competitive Advantage

Strategy Formulation, Execution, and Governance

Evaluating a Companys External Environment

Evaluating a Company Resources, Capabilities, and Competitiveness

Strength-Ending a Company Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multi-Business Company

Ethics,Corporate Social Responsibility,Environmental Sustainability, and Strategy

Super Strategy Execution-Another Path to Competitive Advantage

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Exam 5: The Five Generic Competitive Strategies

The pitfalls of a differentiation strategy include

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

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

A company that succeeds in differentiating its product offering from those of its rivals can usually

A company's competitive strategy deals with

A competitive strategy to be the low-cost provider in an industry works well when

The major avenues for achieving a cost advantage over rivals include

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.

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

A firm pursuing a best-cost provider strategy

Which one of the following does not represent market circumstances that make a focused low-cost or focused differentiation strategy attractive?

A company's biggest vulnerability in employing a best-cost provider strategy is

Broad differentiation strategies are well suited for market conditions where

Examples of important cost drivers in a company's value chain do not include

While there are many routes to competitive advantage,they all involve

Broad differentiation strategies generally work best in market circumstances where

Easy-to-copy differentiating features

The objective of competitive strategy is to

A broad differentiation strategy works best in situations characterized by

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

Strategy,Business Models, and Competitive Advantage

Strategy Formulation, Execution, and Governance

Evaluating a Companys External Environment

Evaluating a Company Resources, Capabilities, and Competitiveness

Strength-Ending a Company Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multi-Business Company

Ethics,Corporate Social Responsibility,Environmental Sustainability, and Strategy

Super Strategy Execution-Another Path to Competitive Advantage

Filters