Exam 5: Building Competitive Advantage Through Business-Level Strategy

Nick is often asked to perform his clown act for birthday parties and school groups,but he offers his most inexpensive services only to children's hospitals.Nick is pursuing which generic business strategy?

Compared to a differentiator,the cost leader has the advantage over its rivals of

If consumer tastes change and a focuser's niche disappears,the danger for the focuser is that it might have difficulty shifting resources from its niche to another market segment.

To pursue a cost leadership strategy,strategic managers need to incorporate all the latest technology into their products.

Market segmentation addresses the "what" portion of a firm's business model.

Delta Airlines used to advertise its high-quality air travel service by saying it flew "anywhere,anytime." What generic strategy is represented by this advertisement?

Companies with a differentiation advantage must charge a lower price for their products.

Differentiation on the basis of innovation and technological competency depends on the research and development function.

A company pursuing a focus strategy

Companies that successfully differentiate a product often charge ____ prices for them.

A radio station has a distinctive competency in developing new products (shows)and wants to serve the upscale market.Which of the following is the most appropriate generic strategy for this company?

What factors may account for a company's failure to achieve effective competitive positioning? What actions should a company take to avoid such failures?

Which generic business-level strategy is based on the intent to outperform competitors by doing everything a company can to lower its cost structure?

If a company uses a focused cost-leadership strategy,it competes in the market segments where

What is meant by the term strategic group and why is it important for managers to understand this term to position their companies in a competitive marketplace?

A strategic group is a group of companies within a particular industry

Cost leaders ignore the many different market segments in an industry and position their products to appeal to the average customer.

Strategic group analysis allows managers to focus only on what is happening in their group.

A major problem with a differentiation strategy centers on the long-term ability to maintain a product's perceived difference or distinctness in customers' eyes.

A focused differentiator has the advantage of