Exam 5: Business-Level Strategy: Creating and Sustaining Competitive Advantages

An overall ______ position enables a firm to achieve above-average returns because it protects firms against powerful buyers.

Outside the flight experience itself,airlines are generating revenue by charging fees for credit cards,frequent-flyer programs,and access to airport lounges.This serves to

Atlas Door created competitive advantage by reducing the time to receive and process an order and through installing a just-in-time logistics operation.Which of the following is not a reason for their favorable position relative to the five forces of industry competition?

A low-cost position provides _______ flexibility to cope with demands from powerful suppliers for input cost increases.

Rapid changes in technology,globalization,and actions by rivals cannot erode company advantages.

Firms may fail to accurately assess sources of revenue and profits in their value chain.This might be a result of an unbiased manager.

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

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

In the __________ stage of the industry life cycle,there are many segments,competition is very intense,and the emphasis on process design is high.

Mature firms tend to have assets that continue to produce significant returns.

Renault has found a way to generate high profits on low-priced cards by using simple designs that incorporate components from older car designs and a no-discount retail policy.They are using a(n)______________ strategy.

Competitive advantage can be found in just-in-time manufacturing processes.

The three generic strategies that Michael Porter believes a firm can use to overcome the five forces and achieve competitive advantage include overall price leadership.

Proctor and Gamble announced that it would sell off or close down up to 100 of its brands.This is an example of which turnaround strategy used by successful companies?

The overall value proposition of Walmart makes potential substitute products such as Internet competitors a more viable threat.

Southwest Airlines uses an overall cost leadership strategy.This could fail if it

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

A potential pitfall of a focus strategy is that cost advantages will not change over time.

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.