Exam 5: Creating Business Strategies

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

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

The focus position usually involves eliminating some services or features in order to drive costs down.

All of the following are drivers for the differentiation strategic position except ________.

A firm that competes by achieving higher prices and margins because of superior product quality is called a differentiator.

Strategic positioning increases the effects of rivalry and decreases profitability.

How does IKEA successfully pursue the integrated position?

Greater scale discourages the use of more sophisticated technology.

Discuss some of the various types of production costs.

Michael Porter's generic strategies are known as strategic positions, which are ________ of several elements of a firm's strategy.

Firms that have been able to integrate low-cost and differentiation positions can be found ________.

Why is the minimum efficient scale critical to strategic decisions?

The generic strategies that derive from the strategic-positioning model help managers reduce the effects of intense rivalry on profitability.

Firms operating above the minimum efficient scale (MES) have a cost advantage.

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

Explain the strategy of Harley-Davidson.

Strategy-formulation tools enable you to test the quality of a firm's strategy. These tools include all but the ________ model.

If a firm can lower production costs by sharing a resource among one or more of its products, it benefits from ________.

Focus strategies are influenced by unique economic drivers.

How does Pacific Cycle compete in the bicycle industry?