Exam 5: Creating Business Strategies

Firms that take a differentiation position try to satisfy basic rather than highly specialized customer needs.

All of the following are well-known companies pursuing the differentiation strategy except ________.

An unsuccessful attempt to integrate both low-cost and differentiation positions is called ________.

Mercedes Benz is the world's leading manufacturer of premium passenger cars because it has a reputation for all but which of the following?

The automobile industry is a commodity market.

The concept of strategic positioning is useful in dealing with issues derived from the ________.

Differentiation involves all of the following except ________.

When the vision of a firm, its strategy, and the industry conditions are not aligned, the lack of coherence almost always causes the firm to ________.

Variable costs are the costs of ________.

Toyota, a company pursuing an integrated approach, delivers more consumer value through the use of intangibles such as ________.

Costs may decline at some ranges of production but increase at others.

To be ready for the maturity phase, a firm's strategy will need to accommodate rapid growth.

Economies of scale occur when average total costs decrease at higher levels of output.

What are some possible threats to focus positions?

Mature industries often undergo consolidation.

Explain the strategy of Harley-Davidson.

When are customers willing to pay more for a product?

Firms that have integrated low-cost and differentiation positions can be found in most industries.

A successful differentiation position requires that a firm satisfy all but which of the following criteria?

Name the four positions included in Porter's concept of generic strategies.