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

A potential pitfall of a focus strategy is that focusers can become too focused to satisfy buyer needs.

A __________ can be defined as the total profits in an industry at all points along the industry value chain.

Which of the following is most often true of mature markets?

The three generic strategies presented by Michael Porter can be shown on two dimensions: competitive advantage and product life cycle.

Businesses that compete in markets that are in decline should simply be harvested or divested since they are no longer profitable.

Given the attractiveness of premium pricing during the growth stage of the market life cycle,managers should emphasize short-term results to increase profits.

The text discusses three approaches to combining overall cost leadership and differentiation competitive advantages.Which of the following is not one of these three approaches?

Which of the following methods of implementing a differentiation strategy has been greatly enhanced because of Internet technologies?

Explain how a differentiation strategy enables a business to address the five competitive forces in such a way that it can enjoy high levels of profitability.

Discuss some of the effective turnaround strategies.

The market life cycle should be used as a short-run forecasting device because it provides a conceptual framework for understanding what changes typically occur.

One aspect of using a cost leadership strategy is that experience effects may lead to lower costs.Experience effects are achieved by ____________.

A firm can attain an overall cost leadership position by using automated technology to reduce scrappage rates.

A disadvantage of firms that successfully integrate overall cost leadership and a differentiation strategy is that they are relatively easy for competitors to imitate.

A potential pitfall of a focus strategy is that over time the cost advantages in a narrow market niche can erode,leaving the company with little profit.

Which of the following is not a potential pitfall of a differentiation strategy?

In technology intensive industries,the duration of competitive advantages is declining.

Many firms facing a turnaround situation try to reduce their costs by outsourcing the production of many inputs.

Convincing rivals not to enter a price war,protection from customer pressure to lower prices,and the ability to better withstand cost increases from suppliers characterize which type of competitive strategy?

Explain the advantages of the four alternative strategies of maintaining,harvesting,exiting,and consolidating that are associated with the decline stage of the market life cycle.