Question 1

To succeed with a low-cost provider strategy,company managers have to

Accepted Answer

A)  pursue backward or forward integration to detour suppliers or buyers with considerable bargaining power and leverage. 
B)  move the performance of most all value chain activities to low-wage countries. 
C)  sell direct to users of their product or service and eliminate use of wholesale and retail intermediaries. 
D)  (1) perform value chain activities more cost-effectively than rivals and (2) be proactive in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities. 
E)  outsource the majority of value chain activities. 
A)  pursue backward or forward integration to detour suppliers or buyers with considerable bargaining power and leverage. 
B)  move the performance of most all value chain activities to low-wage countries. 
C)  sell direct to users of their product or service and eliminate use of wholesale and retail intermediaries. 
D)  (1) perform value chain activities more cost-effectively than rivals and (2) be proactive in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities. 
E)  outsource the majority of value chain activities.

Question 2

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 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 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 3

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

Accepted Answer

A)  the nature of differentiation is hard to quantify. 
B)  buyers are making a first-time purchase. 
C)  repurchase of the product or service is infrequent. 
D)  buyers are unsophisticated and unfamiliar with the capabilities of competing brands. 
E)  All of these choices are correct. 
A)  the nature of differentiation is hard to quantify. 
B)  buyers are making a first-time purchase. 
C)  repurchase of the product or service is infrequent. 
D)  buyers are unsophisticated and unfamiliar with the capabilities of competing brands. 
E)  All of these choices are correct.

Question 4

The most appealing approaches to differentiation are those that

Accepted Answer

A)  are the most costly to incorporate. 
B)  match the differentiating features offered by rivals in the industry. 
C)  can be made even more attractive to buyers via clever advertising. 
D)  appeal to the most affluent consumers. 
E)  are hard or expensive for rivals to duplicate and have considerable buyer appeal. 
A)  are the most costly to incorporate. 
B)  match the differentiating features offered by rivals in the industry. 
C)  can be made even more attractive to buyers via clever advertising. 
D)  appeal to the most affluent consumers. 
E)  are hard or expensive for rivals to duplicate and have considerable buyer appeal.

Question 5

The aim of the best-cost provider strategy is to create a competitive advantage by

Accepted Answer

A)  incorporating attractive or upscale product attributes at a lower cost than rivals. 
B)  offering buyers the industry's best-performing product at the best cost and best (lowest) price in the industry. 
C)  attracting buyers on the basis of having the industry's overall best-performing product at a price that is slightly below the industry-average price. 
D)  outcompeting rivals using low-cost provider strategies. 
E)  translating its best-cost status into achieving the highest profit margins of any firm in the industry. 
A)  incorporating attractive or upscale product attributes at a lower cost than rivals. 
B)  offering buyers the industry's best-performing product at the best cost and best (lowest) price in the industry. 
C)  attracting buyers on the basis of having the industry's overall best-performing product at a price that is slightly below the industry-average price. 
D)  outcompeting rivals using low-cost provider strategies. 
E)  translating its best-cost status into achieving the highest profit margins of any firm in the industry.

Question 6

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

Accepted Answer

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

Question 7

Identify cost drivers in a company's value chain.Explain how these drivers impact a firm's generic strategy.

Accepted Answer

The answer of Identify cost drivers in a company's value...

Question 8

In which of the following circumstances is a strategy to be the industry's overall low-cost provider not particularly well matched to the market situation?

Accepted Answer

A)  when the offerings of rival firms are essentially identical,standardized,commodity-like products 
B)  when there are few ways to achieve differentiation that have value to buyers 
C)  when price competition is especially vigorous 
D)  when buyers have widely varying needs and special requirements,and when the costs of switching purchases from one seller to another are relatively high 
E)  when industry newcomers use introductory prices to build a customer base 
A)  when the offerings of rival firms are essentially identical,standardized,commodity-like products 
B)  when there are few ways to achieve differentiation that have value to buyers 
C)  when price competition is especially vigorous 
D)  when buyers have widely varying needs and special requirements,and when the costs of switching purchases from one seller to another are relatively high 
E)  when industry newcomers use introductory prices to build a customer base

Question 9

A differentiation-based competitive advantage

Accepted Answer

A)  nearly always is attached to the quality and service aspects of a company's product offering. 
B)  most often is the result of highly effective marketing and advertising campaigns designed to build awareness and recognition of the product or service offering. 
C)  requires developing at least one distinctive competence that buyers consider valuable. 
D)  hinges on a company's success in developing top-of-the-line product features that will command the biggest price premium in the industry. 
E)  often hinges on incorporating features that: (1) raise the performance of the product,(2) lower the buyer's overall costs of using the company's product,(3) enhance buyer satisfaction in intangible or noneconomic ways,or (4) deliver value to customers by exploiting competitive capabilities that rivals can't match. 
A)  nearly always is attached to the quality and service aspects of a company's product offering. 
B)  most often is the result of highly effective marketing and advertising campaigns designed to build awareness and recognition of the product or service offering. 
C)  requires developing at least one distinctive competence that buyers consider valuable. 
D)  hinges on a company's success in developing top-of-the-line product features that will command the biggest price premium in the industry. 
E)  often hinges on incorporating features that: (1) raise the performance of the product,(2) lower the buyer's overall costs of using the company's product,(3) enhance buyer satisfaction in intangible or noneconomic ways,or (4) deliver value to customers by exploiting competitive capabilities that rivals can't match.

Question 10

Which one of the five generic competitive strategies is most likely to be best suited for an industry whose product is a commodity? Explain.

Accepted Answer

The answer of Which one of the five generic competitive...

Question 11

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

Accepted Answer

A)  buyers are not price sensitive. 
B)  the industry is made up of a large number of or equal-sized rivals. 
C)  there are many ways to achieve product differentiation that have value to buyers. 
D)  price competition is especially vigorous,buyers have low switching costs,and the majority of industry sales are made to a few large-volume buyers. 
E)  switching costs are high,price competition is strong,and buyers tend to use the industry's products in many different ways. 
A)  buyers are not price sensitive. 
B)  the industry is made up of a large number of or equal-sized rivals. 
C)  there are many ways to achieve product differentiation that have value to buyers. 
D)  price competition is especially vigorous,buyers have low switching costs,and the majority of industry sales are made to a few large-volume buyers. 
E)  switching costs are high,price competition is strong,and buyers tend to use the industry's products in many different ways.

Question 12

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-to-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-to-35 age group).

Question 13

The generic types of competitive strategies include

Accepted Answer

A)  build market share,maintain market share,and slowly surrender market share. 
B)  offensive strategies and defensive strategies. 
C)  low-cost provider,broad differentiation,focused low-cost,focused differentiation,and best-cost provider strategies. 
D)  low-cost/low-price strategies,high-quality/high-price strategies,medium-quality/medium-price strategies,low-cost/high-price strategies. 
E)  price leader strategies,price follower strategies,technology leader strategies,first-mover strategies,offensive strategies,and defensive strategies. 
A)  build market share,maintain market share,and slowly surrender market share. 
B)  offensive strategies and defensive strategies. 
C)  low-cost provider,broad differentiation,focused low-cost,focused differentiation,and best-cost provider strategies. 
D)  low-cost/low-price strategies,high-quality/high-price strategies,medium-quality/medium-price strategies,low-cost/high-price strategies. 
E)  price leader strategies,price follower strategies,technology leader strategies,first-mover strategies,offensive strategies,and defensive strategies.

Question 14

The advantages of focusing a company's entire competitive effort on a single market niche allows for

Accepted Answer

A)  going after a national customer base with a "something for everyone" lineup of models. 
B)  scaling operations to serve the customer market segment. 
C)  utilizing the full depth of the company's resources across a broad base of customers. 
D)  executing competencies and capabilities better than competitors. 
E)  All of these choices are correct. 
A)  going after a national customer base with a "something for everyone" lineup of models. 
B)  scaling operations to serve the customer market segment. 
C)  utilizing the full depth of the company's resources across a broad base of customers. 
D)  executing competencies and capabilities better than competitors. 
E)  All of these choices are correct.

Question 15

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

Accepted Answer

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

Question 16

A strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or focus 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. 
C)  the offerings of rival firms are essentially identical,standardized,commodity-like products. 
D)  buyers have high switching costs in changing from one seller's product to another. 
E)  the market is composed of many buyer types,all with varying 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. 
C)  the offerings of rival firms are essentially identical,standardized,commodity-like products. 
D)  buyers have high switching costs in changing from one seller's product to another. 
E)  the market is composed of many buyer types,all with varying needs and expectations.

Question 17

The greatest danger or risk of an unsound 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 low-cost leaders 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 low-cost leaders 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 18

Identify uniqueness drivers in a company's value chain.Explain how these drivers impact a firm's generic strategy.

Accepted Answer

The answer of Identify uniqueness drivers in a company's value...

Question 19

A focused differentiation strategy aims at securing competitive advantage

Accepted Answer

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

Question 20

One of the big dangers in crafting a competitive strategy is that managers,torn between the pros and cons of the various generic strategies,will opt for "stuck in the middle" strategies that represent compromises between lower costs and greater differentiation,and between broad and narrow market appeal.True or false? Explain your answer.

Accepted Answer

The answer of One of the big dangers in crafting...

To succeed with a low-cost provider strategy,company managers have to

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

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

The most appealing approaches to differentiation are those that

The aim of the best-cost provider strategy is to create a competitive advantage by

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

Identify cost drivers in a company's value chain.Explain how these drivers impact a firm's generic strategy.

In which of the following circumstances is a strategy to be the industry's overall low-cost provider not particularly well matched to the market situation?

A differentiation-based competitive advantage

Which one of the five generic competitive strategies is most likely to be best suited for an industry whose product is a commodity? Explain.

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

The target market of a best-cost provider is

The generic types of competitive strategies include

The advantages of focusing a company's entire competitive effort on a single market niche allows for

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

A strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or focus strategy when

The greatest danger or risk of an unsound best-cost provider strategy is

Identify uniqueness drivers in a company's value chain.Explain how these drivers impact a firm's generic strategy.

A focused differentiation strategy aims at securing competitive advantage

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

To succeed with a low-cost provider strategy,company managers have to

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

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

The most appealing approaches to differentiation are those that

The aim of the best-cost provider strategy is to create a competitive advantage by

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

Identify cost drivers in a company's value chain.Explain how these drivers impact a firm's generic strategy.

In which of the following circumstances is a strategy to be the industry's overall low-cost provider not particularly well matched to the market situation?

A differentiation-based competitive advantage

Which one of the five generic competitive strategies is most likely to be best suited for an industry whose product is a commodity? Explain.

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

The target market of a best-cost provider is

The generic types of competitive strategies include

The advantages of focusing a company's entire competitive effort on a single market niche allows for

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

A strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or focus strategy when

The greatest danger or risk of an unsound best-cost provider strategy is

Identify uniqueness drivers in a company's value chain.Explain how these drivers impact a firm's generic strategy.

A focused differentiation strategy aims at securing competitive advantage

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