Question 1

Focus strategy can be defined as:

Accepted Answer

A) the strategy of merging with an established company in order to gain monopoly over the market. 
B) the strategy a company uses when it decides to allocate the company resources equally among all the marketing segments 
C) the strategy a company uses when it decides to serve a limited number of segments, or just one segment of the market. 
D) the strategy a company uses when it decides to iguore the different needs of different market segments, and produce one standardized product for all the customers. 
E) the strategy of closing down one or more business units in order to minimize the losses. 
A) the strategy of merging with an established company in order to gain monopoly over the market. 
B) the strategy a company uses when it decides to allocate the company resources equally among all the marketing segments 
C) the strategy a company uses when it decides to serve a limited number of segments, or just one segment of the market. 
D) the strategy a company uses when it decides to iguore the different needs of different market segments, and produce one standardized product for all the customers. 
E) the strategy of closing down one or more business units in order to minimize the losses.

Question 2

Companies that focus on the higher-income or higher-value end of the market will tend to have a higher cost structure.

Accepted Answer

A) True 
 B)False

Question 3

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by:

Accepted Answer

A) redefming their product offering through value innovation and creating a new market space. 
B) initiating a price war in order to grow volume and drive its weaker rivals out of the industry. 
C) developing brand loyalty to protect them from intense price rivalry within their industry. 
D) charging premium prices for their goods or services. 
E) adopting lean production and flexible manufacturing technologies. 
A) redefming their product offering through value innovation and creating a new market space. 
B) initiating a price war in order to grow volume and drive its weaker rivals out of the industry. 
C) developing brand loyalty to protect them from intense price rivalry within their industry. 
D) charging premium prices for their goods or services. 
E) adopting lean production and flexible manufacturing technologies.

Question 4

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?

Accepted Answer

A) Broad low-cost 
B) Broad differentiation 
C) Vertical integration 
D) Right-time marketing 
E) Rapid growth 
A) Broad low-cost 
B) Broad differentiation 
C) Vertical integration 
D) Right-time marketing 
E) Rapid growth

Question 5

Which of the following is NOT a principal danger of a low-cost position approach?

Accepted Answer

A) Powerful buyers 
B) Technological change 
C) hnitation of production techniques 
D) Changes in consumer tastes 
E) Rivals lowering their costs 
A) Powerful buyers 
B) Technological change 
C) hnitation of production techniques 
D) Changes in consumer tastes 
E) Rivals lowering their costs

Question 6

A market segment consists of a group of:

Accepted Answer

A) similar products. 
B) customers who have similar needs. 
C) products that are considered obsolete. 
D) diverse products produced by the same manufacturer. 
E) customers who have diverse needs. 
A) similar products. 
B) customers who have similar needs. 
C) products that are considered obsolete. 
D) diverse products produced by the same manufacturer. 
E) customers who have diverse needs.

Question 7

The term value innovation is used to describe:

Accepted Answer

A) the way a company decides to group customers based on important differences in their needs to gain a competitive advantage. 
B) a business's overall competitive theme, the way it positions itself in the marketplace to gain a competitive advantage, and the different positioning strategies that can be used in different industry settings. 
C) what happens when innovation pushes out the efficiency frontier in an industry, allowing for greater value to be offered through superior differentiation at a lower cost than was previously thought possible. 
D) what happens when a company decides to ignore different segments, and produce a standardized product for the average consumer. 
E) what happens when a company decides to serve many segments, or even the entire market, producing different offerings for different segments. 
A) the way a company decides to group customers based on important differences in their needs to gain a competitive advantage. 
B) a business's overall competitive theme, the way it positions itself in the marketplace to gain a competitive advantage, and the different positioning strategies that can be used in different industry settings. 
C) what happens when innovation pushes out the efficiency frontier in an industry, allowing for greater value to be offered through superior differentiation at a lower cost than was previously thought possible. 
D) what happens when a company decides to ignore different segments, and produce a standardized product for the average consumer. 
E) what happens when a company decides to serve many segments, or even the entire market, producing different offerings for different segments.

Question 8

Which of the following is NOT a main approach to market segmentation?

Accepted Answer

A) Marketing a product targeted toward average or typical customers 
B) Marketing a product to a group of people who are more likely to purchase it 
C) Making customized products to suit the unique requirements of customers 
D) Making products to meet the specific needs of a narrow group of customers 
E) Making one product aimed toward a general, rather than a specific subset of customers 
A) Marketing a product targeted toward average or typical customers 
B) Marketing a product to a group of people who are more likely to purchase it 
C) Making customized products to suit the unique requirements of customers 
D) Making products to meet the specific needs of a narrow group of customers 
E) Making one product aimed toward a general, rather than a specific subset of customers

Question 9

By focusing on a niche, and customizing the offering to that segment, a differentiated company can often outsell differentiated rivals that target a broader market.

Accepted Answer

A) True 
 B)False

Question 10

The way a prodnet is differentiated from other prodncts of its type and the price of the prodnct determine which prodnct a cnstomer chooses to satisfy his or her needs.

Accepted Answer

A) True 
 B)False

Question 11

Differentiation can help a company to grow overall demand and capture market share from its rivals.

Accepted Answer

A) True 
 B)False

Question 12

Production of a large product variety without a large cost penalty is known as:

Accepted Answer

A) market concentration. 
B) market segmentation. 
C) focused differentiation. 
D) mass production. 
E) mass customization. 
A) market concentration. 
B) market segmentation. 
C) focused differentiation. 
D) mass production. 
E) mass customization.

Question 13

A company has a competitive advantage if it can increase costs relative to rivals.

Accepted Answer

A) True 
 B)False

Question 14

A differentiated product is a product that:

Accepted Answer

A) has a greater resale value than rival products. 
B) provides greater reliability than rival products. 
C) is offered free of cost on purchase of a company's standard product. 
D) always costs more than rival products. 
E) always costs less than rival products. 
A) has a greater resale value than rival products. 
B) provides greater reliability than rival products. 
C) is offered free of cost on purchase of a company's standard product. 
D) always costs more than rival products. 
E) always costs less than rival products.

Question 15

A product's appeal to customers' desires cannot be considered a source of differentiation.

Accepted Answer

A) True 
 B)False

Question 16

Define the generic business-level strategies companies pursue.

Accepted Answer

There are four generic business-level st

Question 17

Which of the following statements is true of differentiation and cost structure?

Accepted Answer

A) Differentiation and cost structure decisions affect one another. 
B) Differentiation and cost structure decisions do not affect one another. 
C) Companies that focus on the higher-value end of the market have a lower cost structure. 
D) Differentiation decisions do not affect a company's profitability. 
E) Cost structure decisions do not affect a company's profitability. 
A) Differentiation and cost structure decisions affect one another. 
B) Differentiation and cost structure decisions do not affect one another. 
C) Companies that focus on the higher-value end of the market have a lower cost structure. 
D) Differentiation decisions do not affect a company's profitability. 
E) Cost structure decisions do not affect a company's profitability.

Question 18

Actions taken at the functional level should support the business-level strategy, as should the organizational arrangements of the enterprise.

Accepted Answer

A) True 
 B)False

Question 19

A differentiated company is protected from intense price rivalry within its industry by its brand loyalty.

Accepted Answer

A) True 
 B)False

Question 20

The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy is in the:

Accepted Answer

A) standardized market price. 
B) industry life cycle stage. 
C) degree of market segmentation. 
D) age of the market. 
E) market trajectory. 
A) standardized market price. 
B) industry life cycle stage. 
C) degree of market segmentation. 
D) age of the market. 
E) market trajectory.

Focus strategy can be defined as:

Companies that focus on the higher-income or higher-value end of the market will tend to have a higher cost structure.

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by:

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?

Which of the following is NOT a principal danger of a low-cost position approach?

A market segment consists of a group of:

The term value innovation is used to describe:

Which of the following is NOT a main approach to market segmentation?

By focusing on a niche, and customizing the offering to that segment, a differentiated company can often outsell differentiated rivals that target a broader market.

The way a prodnet is differentiated from other prodncts of its type and the price of the prodnct determine which prodnct a cnstomer chooses to satisfy his or her needs.

Differentiation can help a company to grow overall demand and capture market share from its rivals.

Production of a large product variety without a large cost penalty is known as:

A company has a competitive advantage if it can increase costs relative to rivals.

A differentiated product is a product that:

A product's appeal to customers' desires cannot be considered a source of differentiation.

Define the generic business-level strategies companies pursue.

Which of the following statements is true of differentiation and cost structure?

Actions taken at the functional level should support the business-level strategy, as should the organizational arrangements of the enterprise.

A differentiated company is protected from intense price rivalry within its industry by its brand loyalty.

The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy is in the:

Strategic Leadership: Managing the Strategy-Making Process for Competitive Analysis

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters

Exam 5: Building Competitive Advantage Through Business-Level Strategy

Focus strategy can be defined as:

Companies that focus on the higher-income or higher-value end of the market will tend to have a higher cost structure.

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by:

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?

Which of the following is NOT a principal danger of a low-cost position approach?

A market segment consists of a group of:

The term value innovation is used to describe:

Which of the following is NOT a main approach to market segmentation?

By focusing on a niche, and customizing the offering to that segment, a differentiated company can often outsell differentiated rivals that target a broader market.

The way a prodnet is differentiated from other prodncts of its type and the price of the prodnct determine which prodnct a cnstomer chooses to satisfy his or her needs.

Differentiation can help a company to grow overall demand and capture market share from its rivals.

Production of a large product variety without a large cost penalty is known as:

A company has a competitive advantage if it can increase costs relative to rivals.

A differentiated product is a product that:

A product's appeal to customers' desires cannot be considered a source of differentiation.

Define the generic business-level strategies companies pursue.

Which of the following statements is true of differentiation and cost structure?

Actions taken at the functional level should support the business-level strategy, as should the organizational arrangements of the enterprise.

A differentiated company is protected from intense price rivalry within its industry by its brand loyalty.

The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy is in the:

Strategic Leadership: Managing the Strategy-Making Process for Competitive Analysis

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters