Question 1

The most likely time to pursue a harvest strategy is in a situation of _______.

Accepted Answer

A)  high growth 
B)  strong competitive advantage 
C)  decline in the market life cycle 
D)  mergers and acquisitions 
A)  high growth 
B)  strong competitive advantage 
C)  decline in the market life cycle 
D)  mergers and acquisitions C

Question 2

An important advantage of first movers in a market is that they may establish brand recognition that may later serve as an important switching cost.

Accepted Answer

A) True 
 B)False  True

Question 3

Explain how firms can use reverse positioning and breakaway positioning when faced with the maturity phase of the industry life cycle.

Accepted Answer

Reverse positioning and breakaway positioning are two strategies that firms can use when faced with the maturity phase of the industry life cycle.

Reverse positioning involves redefining the product or service in a way that challenges the existing norms and expectations within the industry. This can involve stripping away certain features or benefits that are typically associated with the product or service, or even repositioning the product for a completely different target market. By doing so, the firm can create a new niche for itself within the market and differentiate itself from competitors.

Breakaway positioning, on the other hand, involves introducing a completely new and innovative product or service that disrupts the existing market. This can involve leveraging new technologies, creating a new business model, or offering a completely different value proposition to customers. By doing so, the firm can break away from the traditional norms of the industry and create a new market space for itself.

In the maturity phase of the industry life cycle, competition is often intense and market saturation can lead to stagnant growth. By using reverse positioning, firms can differentiate themselves from competitors and appeal to a new segment of customers who are looking for something different. Similarly, breakaway positioning allows firms to create new opportunities for growth by introducing innovative products or services that can redefine the industry.

Overall, both reverse positioning and breakaway positioning can help firms navigate the challenges of the maturity phase and find new avenues for growth and success within the industry life cycle.

Question 4

During the growth stage of the market life cycle,customers are very likely to establish brand loyalty.

Accepted Answer

A) True 
 B)False

Question 5

With reverse positioning,a strategy to be used during the mature stage of the industry life cycle,a product escapes its category by deliberately associating with a different one.

Accepted Answer

A) True 
 B)False

Question 6

The software maker,Intuit,successfully implemented a turnaround strategy by discontinuing product lines and focusing all resources on a few core profitable areas.

Accepted Answer

A) True 
 B)False

Question 7

As markets mature,___________.

Accepted Answer

A)  costs continue to increase 
B)  application for patents increase 
C)  there is increasing emphasis on efficiency 
D)  differentiation opportunities increase 
A)  costs continue to increase 
B)  application for patents increase 
C)  there is increasing emphasis on efficiency 
D)  differentiation opportunities increase

Question 8

In the __________ stage of the industry life cycle,the emphasis on product design is very high,the intensity of competition is low,and the market growth rate is low.

Accepted Answer

A)  growth 
B)  maturity 
C)  introduction 
D)  decline 
A)  growth 
B)  maturity 
C)  introduction 
D)  decline

Question 9

A successful differentiation strategy lowers entry barriers because of customer loyalty and the ability of the firm to provide uniqueness in its products and services.

Accepted Answer

A) True 
 B)False

Question 10

A firm can attain an overall cost leadership position by purchasing media in large blocks and maximizing sales force utilization through territory management.

Accepted Answer

A) True 
 B)False

Question 11

One potential pitfall of a differentiation strategy is that identification of the brand in the marketplace may become diluted through excessive product line extensions.

Accepted Answer

A) True 
 B)False

Question 12

During the decline stage of the product life cycle,a harvesting strategy means that a firm keeps a product going without significantly reducing marketing support,technological development,or other investments,while hoping that competitors will exit the market.

Accepted Answer

A) True 
 B)False

Question 13

Mass customization enables manufacturers to be more responsive to customer demands for high quality products.

Accepted Answer

A) True 
 B)False

Question 14

Research has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform ______________.

Accepted Answer

A)  at about the same level as firms that achieve either cost or differentiation advantages 
B)  about the same as firms that are stuck-in-the-middle 
C)  higher than firms that achieve either a cost or a differentiation advantage 
D)  lower than firms that achieve differentiation advantages but higher than firms that achieve cost advantages 
A)  at about the same level as firms that achieve either cost or differentiation advantages 
B)  about the same as firms that are stuck-in-the-middle 
C)  higher than firms that achieve either a cost or a differentiation advantage 
D)  lower than firms that achieve differentiation advantages but higher than firms that achieve cost advantages

Question 15

Discuss the uses and limitations associated with the industry life cycle concept as a framework for studying strategy formulation at the business level.

Accepted Answer

The industry life cycle concept is a fra

Question 16

To generate above average returns,a firm following an overall cost leadership position should NOT be concerned with attaining parity or proximity on the basis of differentiation relative to its peers.

Accepted Answer

A) True 
 B)False

Question 17

A narrow market focus is to a differentiation-based strategy as a __________________.

Accepted Answer

A)  growth market is to a differentiation-based strategy 
B)  broadly-defined target market is to a cost leadership strategy 
C)  growth market is to a cost-based strategy 
D)  technological innovation is to a cost-based strategy 
A)  growth market is to a differentiation-based strategy 
B)  broadly-defined target market is to a cost leadership strategy 
C)  growth market is to a cost-based strategy 
D)  technological innovation is to a cost-based strategy

Question 18

Concentrating solely on one form of competitive advantage generally leads to the highest possible level of profitability.

Accepted Answer

A) True 
 B)False

Question 19

The Internet offers few advantages for focusers because niche players and small companies cannot implement capabilities as effectively as their larger competitors.

Accepted Answer

A) True 
 B)False

Question 20

What are the benefits and risks associated with combining overall cost leadership and differentiation strategies?

Accepted Answer

Combining overall cost leadership and di

The most likely time to pursue a harvest strategy is in a situation of _______.

An important advantage of first movers in a market is that they may establish brand recognition that may later serve as an important switching cost.

Explain how firms can use reverse positioning and breakaway positioning when faced with the maturity phase of the industry life cycle.

During the growth stage of the market life cycle,customers are very likely to establish brand loyalty.

With reverse positioning,a strategy to be used during the mature stage of the industry life cycle,a product escapes its category by deliberately associating with a different one.

The software maker,Intuit,successfully implemented a turnaround strategy by discontinuing product lines and focusing all resources on a few core profitable areas.

As markets mature,___________.

In the __________ stage of the industry life cycle,the emphasis on product design is very high,the intensity of competition is low,and the market growth rate is low.

A successful differentiation strategy lowers entry barriers because of customer loyalty and the ability of the firm to provide uniqueness in its products and services.

A firm can attain an overall cost leadership position by purchasing media in large blocks and maximizing sales force utilization through territory management.

One potential pitfall of a differentiation strategy is that identification of the brand in the marketplace may become diluted through excessive product line extensions.

During the decline stage of the product life cycle,a harvesting strategy means that a firm keeps a product going without significantly reducing marketing support,technological development,or other investments,while hoping that competitors will exit the market.

Mass customization enables manufacturers to be more responsive to customer demands for high quality products.

Research has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform ______________.

Discuss the uses and limitations associated with the industry life cycle concept as a framework for studying strategy formulation at the business level.

To generate above average returns,a firm following an overall cost leadership position should NOT be concerned with attaining parity or proximity on the basis of differentiation relative to its peers.

A narrow market focus is to a differentiation-based strategy as a __________________.

Concentrating solely on one form of competitive advantage generally leads to the highest possible level of profitability.

The Internet offers few advantages for focusers because niche players and small companies cannot implement capabilities as effectively as their larger competitors.

What are the benefits and risks associated with combining overall cost leadership and differentiation strategies?

Strategic Management: Creating Competitiveadvantages

Analyzing the External Environment Ofthe Firm: Creating Competitive Advantages

Assessing the Internal Environmentof the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangibleresources

Corporate-Level Strategy: Creatingvalue Through Diversification

International Strategy: Creating Valuein Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporategovernance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fosteringcorporate Entrepreneurship

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Exam 5: Business-Level Strategy: Creating Andsustaining Competitive Advantages

The most likely time to pursue a harvest strategy is in a situation of _______.

An important advantage of first movers in a market is that they may establish brand recognition that may later serve as an important switching cost.

Explain how firms can use reverse positioning and breakaway positioning when faced with the maturity phase of the industry life cycle.

During the growth stage of the market life cycle,customers are very likely to establish brand loyalty.

With reverse positioning,a strategy to be used during the mature stage of the industry life cycle,a product escapes its category by deliberately associating with a different one.

The software maker,Intuit,successfully implemented a turnaround strategy by discontinuing product lines and focusing all resources on a few core profitable areas.

As markets mature,___________.

In the __________ stage of the industry life cycle,the emphasis on product design is very high,the intensity of competition is low,and the market growth rate is low.

A successful differentiation strategy lowers entry barriers because of customer loyalty and the ability of the firm to provide uniqueness in its products and services.

A firm can attain an overall cost leadership position by purchasing media in large blocks and maximizing sales force utilization through territory management.

One potential pitfall of a differentiation strategy is that identification of the brand in the marketplace may become diluted through excessive product line extensions.

During the decline stage of the product life cycle,a harvesting strategy means that a firm keeps a product going without significantly reducing marketing support,technological development,or other investments,while hoping that competitors will exit the market.

Mass customization enables manufacturers to be more responsive to customer demands for high quality products.

Research has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform ______________.

Discuss the uses and limitations associated with the industry life cycle concept as a framework for studying strategy formulation at the business level.

To generate above average returns,a firm following an overall cost leadership position should NOT be concerned with attaining parity or proximity on the basis of differentiation relative to its peers.

A narrow market focus is to a differentiation-based strategy as a __________________.

Concentrating solely on one form of competitive advantage generally leads to the highest possible level of profitability.

The Internet offers few advantages for focusers because niche players and small companies cannot implement capabilities as effectively as their larger competitors.

What are the benefits and risks associated with combining overall cost leadership and differentiation strategies?

Strategic Management: Creating Competitiveadvantages

Analyzing the External Environment Ofthe Firm: Creating Competitive Advantages

Assessing the Internal Environmentof the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangibleresources

Corporate-Level Strategy: Creatingvalue Through Diversification

International Strategy: Creating Valuein Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporategovernance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fosteringcorporate Entrepreneurship

Filters