Question 1

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

Accepted Answer

A)  buyer brand loyalty is low. 
B)  few rivals are following a similar differentiation approach. 
C)  new and improved products are introduced only infrequently. 
D)  most rivals are seeking to differentiate their products on most of the same features and attributes. 
E)  price competition is vigorous. 
A)  buyer brand loyalty is low. 
B)  few rivals are following a similar differentiation approach. 
C)  new and improved products are introduced only infrequently. 
D)  most rivals are seeking to differentiate their products on most of the same features and attributes. 
E)  price competition is vigorous.

Question 2

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)  the capability to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes. 
C)  access to greater learning and 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)  the capability to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes. 
C)  access to greater learning and 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.

Question 3

Successful differentiation allows a firm to

Accepted Answer

A)  command the largest market share in the industry. 
B)  set the industry ceiling on price. 
C)  avoid being overly concerned about whether entry barriers into the industry are high or low. 
D)  command a premium price for its product and/or increase unit sales and/or gain buyer loyalty to its brand. 
E)  take sales and market share away from rivals by undercutting them on price. 
A)  command the largest market share in the industry. 
B)  set the industry ceiling on price. 
C)  avoid being overly concerned about whether entry barriers into the industry are high or low. 
D)  command a premium price for its product and/or increase unit sales and/or gain buyer loyalty to its brand. 
E)  take sales and market share away from rivals by undercutting them on price.

Question 4

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

Accepted Answer

A)  lower prices than rival firms. 
B)  using a low-cost/low-price approach to gain the biggest market share. 
C)  high buyer switching costs. 
D)  lower overall costs than competitors. 
E)  higher unit sales than rivals. 
A)  lower prices than rival firms. 
B)  using a low-cost/low-price approach to gain the biggest market share. 
C)  high buyer switching costs. 
D)  lower overall costs than competitors. 
E)  higher unit sales than rivals.

Question 5

Companies can pursue differentiation from many angles,including

Accepted Answer

A)  providing a unique competitive product taste. 
B)  executing superior customer service. 
C)  ensuring engineering design and performance benefits. 
D)  providing products that ensue luxury and prestige. 
E)  All of these choices are correct. 
A)  providing a unique competitive product taste. 
B)  executing superior customer service. 
C)  ensuring engineering design and performance benefits. 
D)  providing products that ensue luxury and prestige. 
E)  All of these choices are correct.

Question 6

In which one of the following market circumstances is a broad differentiation strategy generally not well suited?

Accepted Answer

A)  when buyer needs and preferences are diverse 
B)  when few rivals are pursuing a similar differentiation approach 
C)  when buyers are homogeneous in their needs and preferences,and are generally satisfied with standardized product 
D)  when there are many ways to differentiate the product or service and many buyers perceive these differences as having value 
E)  when technological change is fast-paced and competition revolves around rapidly evolving product features 
A)  when buyer needs and preferences are diverse 
B)  when few rivals are pursuing a similar differentiation approach 
C)  when buyers are homogeneous in their needs and preferences,and are generally satisfied with standardized product 
D)  when there are many ways to differentiate the product or service and many buyers perceive these differences as having value 
E)  when technological change is fast-paced and competition revolves around rapidly evolving product features

Question 7

A company's competitive strategy should

Accepted Answer

A)  be well matched to its internal situation and predicated on leveraging its collection of competitively valuable resources and competencies. 
B)  be aligned toward being at least an average performer within the industry. 
C)  be well attuned to doing an outstanding job of satisfying the needs and expectations of niche buyers. 
D)  have the resources and capabilities to incorporate standard attributes into its product offering. 
E)  ensure it is designed to concentrate on a small range of products so it can react quickly to competitive moves. 
A)  be well matched to its internal situation and predicated on leveraging its collection of competitively valuable resources and competencies. 
B)  be aligned toward being at least an average performer within the industry. 
C)  be well attuned to doing an outstanding job of satisfying the needs and expectations of niche buyers. 
D)  have the resources and capabilities to incorporate standard attributes into its product offering. 
E)  ensure it is designed to concentrate on a small range of products so it can react quickly to competitive moves.

Question 8

Focusing provides the ability to secure a competitive edge,but it also carries some risks that will be detrimental to the focused firm,such as

Accepted Answer

A)  the chance that competitors will not find effective ways to match the focused company's capabilities in serving the market niche. 
B)  the potential for the preferences and needs of niche members to shift over time toward mainstream provider product attributes. 
C)  the potential for the niche to become so attractive that it will not attract new competitors,thereby providing excessive market segment profits. 
D)  the likelihood that a focused company will become so cost efficient that it will achieve excessive profits. 
E)  None of these are risks worth worrying about. 
A)  the chance that competitors will not find effective ways to match the focused company's capabilities in serving the market niche. 
B)  the potential for the preferences and needs of niche members to shift over time toward mainstream provider product attributes. 
C)  the potential for the niche to become so attractive that it will not attract new competitors,thereby providing excessive market segment profits. 
D)  the likelihood that a focused company will become so cost efficient that it will achieve excessive profits. 
E)  None of these are risks worth worrying about.

Question 9

What are the distinctive features of a focused differentiation strategy? How is it different from a broad differentiation strategy?

Accepted Answer

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

Question 10

Which of the following are not distinguishing features of a company's successful best-cost provider strategy?

Accepted Answer

A)  It develops core competencies that allow differentiating attributes to be incorporated at a low cost. 
B)  It has unmatched efficiency in managing essential value chain activities. 
C)  It 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). 
D)  It seeks to be the low-cost provider in the largest and fastest-growing (or best) market segment. 
E)  It enjoys a competitive advantage based on more value for the money. 
A)  It develops core competencies that allow differentiating attributes to be incorporated at a low cost. 
B)  It has unmatched efficiency in managing essential value chain activities. 
C)  It 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). 
D)  It seeks to be the low-cost provider in the largest and fastest-growing (or best) market segment. 
E)  It enjoys a competitive advantage based on more value for the money.

Question 11

In what market and competitive circumstances are focused low-cost and focused differentiation strategies attractive?

Accepted Answer

The answer of In what market and competitive circumstances are...

Question 12

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

Accepted Answer

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

Question 13

Achieving a 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)  performing value chain activities more cost-effectively than rivals and finding ways to eliminate or bypass some cost-producing activities. 
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)  performing value chain activities more cost-effectively than rivals and finding ways to eliminate or bypass some cost-producing activities. 
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

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

Accepted Answer

A)  cutting its price to levels significantly below the prices of rivals. 
B)  using its low-cost edge to underprice competitors and attract price-sensitive buyers in large enough numbers to increase total profits or refraining from price cutting and using the low-cost advantage 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 the fact that it charges the lowest prices in the industry. 
E)  outproducing rivals and thus having more units available to sell. 
A)  cutting its price to levels significantly below the prices of rivals. 
B)  using its low-cost edge to underprice competitors and attract price-sensitive buyers in large enough numbers to increase total profits or refraining from price cutting and using the low-cost advantage 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 the fact that it charges the lowest prices in the industry. 
E)  outproducing rivals and thus having more units available to sell.

Question 15

A focused low-cost strategy seeks to achieve competitive advantage by

Accepted Answer

A)  outmatching competitors in offering niche members an absolute rock-bottom price. 
B)  delivering more value for the money than other competitors. 
C)  performing the primary value chain activities at a lower cost per unit than can the industry's low-cost leaders. 
D)  dominating more market niches in the industry via a lower cost and a lower price than any other rival. 
E)  serving buyers in the target market niche at a lower cost and lower price than rivals. 
A)  outmatching competitors in offering niche members an absolute rock-bottom price. 
B)  delivering more value for the money than other competitors. 
C)  performing the primary value chain activities at a lower cost per unit than can the industry's low-cost leaders. 
D)  dominating more market niches in the industry via a lower cost and a lower price than any other rival. 
E)  serving buyers in the target market niche at a lower cost and lower price than rivals.

Question 16

Opportunities to differentiate a company's product offering

Accepted Answer

A)  are always dependent on the capabilities of the company's R&D staff. 
B)  are more likely to be captured by highly skilled marketers. 
C)  can exist in supply chain activities,R&D,manufacturing activities,distribution and shipping,or marketing,sales,and customer service. 
D)  usually are tied to product quality,durability,reliability,and proliferation. 
E)  are most frequently attached to a product's brand image,performance,and reliability. 
A)  are always dependent on the capabilities of the company's R&D staff. 
B)  are more likely to be captured by highly skilled marketers. 
C)  can exist in supply chain activities,R&D,manufacturing activities,distribution and shipping,or marketing,sales,and customer service. 
D)  usually are tied to product quality,durability,reliability,and proliferation. 
E)  are most frequently attached to a product's brand image,performance,and reliability.

Question 17

The risks of a focused strategy based on either low-cost or differentiation include

Accepted Answer

A)  the chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace. 
B)  the chance that competitors will find effective ways to match the focused firm's capabilities in serving the target niche. 
C)  the potential for the segment to be highly vulnerable to economic cycles. 
D)  the potential for segment growth to race beyond the production or service capabilities of incumbent firms. 
E)  All of these choices are correct. 
A)  the chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace. 
B)  the chance that competitors will find effective ways to match the focused firm's capabilities in serving the target niche. 
C)  the potential for the segment to be highly vulnerable to economic cycles. 
D)  the potential for segment growth to race beyond the production or service capabilities of incumbent firms. 
E)  All of these choices are correct.

Question 18

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. 
B)  Trying to operate facilities at full capacity. 
C)  Taking full advantage of experience and learning curve effects. 
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. 
B)  Trying to operate facilities at full capacity. 
C)  Taking full advantage of experience and learning curve effects. 
D)  Improving supply chain efficiency. 
E)  Redesigning products to eliminate features that might have market appeal,but excessively increase production costs.

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

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

Successful differentiation allows a firm to

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

Companies can pursue differentiation from many angles,including

In which one of the following market circumstances is a broad differentiation strategy generally not well suited?

A company's competitive strategy should

Focusing provides the ability to secure a competitive edge,but it also carries some risks that will be detrimental to the focused firm,such as

What are the distinctive features of a focused differentiation strategy? How is it different from a broad differentiation strategy?

Which of the following are not distinguishing features of a company's successful best-cost provider strategy?

In what market and competitive circumstances are focused low-cost and focused differentiation strategies attractive?

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

Achieving a cost advantage over rivals entails

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

A focused low-cost strategy seeks to achieve competitive advantage by

Opportunities to differentiate a company's product offering

The risks of a focused strategy based on either low-cost or differentiation include

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?

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

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

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

Successful differentiation allows a firm to

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

Companies can pursue differentiation from many angles,including

In which one of the following market circumstances is a broad differentiation strategy generally not well suited?

A company's competitive strategy should

Focusing provides the ability to secure a competitive edge,but it also carries some risks that will be detrimental to the focused firm,such as

What are the distinctive features of a focused differentiation strategy? How is it different from a broad differentiation strategy?

Which of the following are not distinguishing features of a company's successful best-cost provider strategy?

In what market and competitive circumstances are focused low-cost and focused differentiation strategies attractive?

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

Achieving a cost advantage over rivals entails

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

A focused low-cost strategy seeks to achieve competitive advantage by

Opportunities to differentiate a company's product offering

The risks of a focused strategy based on either low-cost or differentiation include

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?

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