Exam 5: Creating Business Strategies

Possible threats to the differentiation strategic position include overfulfilling buyers' needs and lower-cost imitation.

A firm that competes on a small, specialized segment of the market that demands unique product features is called a ________.

Different production technologies result in similar costs.

What is an integrated position?

It is necessary to have both financial and human capital resources to successfully pull off a firm's strategy.

Michael Porter's generic strategy model is useful to help select a ________.

During the ________ stage of the industry life cycle, incumbent firms increase market share by taking advantage of pre-established footholds.

The Economic Logic vs Scope of Arena model identifies four generic strategic positions that result from a firm's starting strategic position. Which is not one of these four positions?

As production experience is gained, incremental production costs increase at a constant rate.

What is the difference between economies of scale and the learning curve?

Enforcing codes of ethical conduct for suppliers can increase costs.

Under the industry-structure model, the key force around which all others revolve in an industry is ________.

All of the following are possible threats to the low-cost strategic position except ________.

Developing a low-cost strategy means that a firm must not pursue opportunities to enhance product quality.

The source of Jet Blue's low operating costs is its production technology.

What is the difference between SBU strategy and business strategy?

Strategic positioning increases the effects of rivalry and decreases profitability.

Product design can sometimes be altered to lower a firm's production costs.

When a company is acquired by another, but still operates independently, it operates as a(n) ________.

Overfulfillment could result in significantly lower profit margins.