Exam 7: B :The Sources and Dimensions of Competitive Advantage

Conceiving of innovative business models typically involves:

Of the two sources of superior profitability,industry attractiveness and competitive advantage within an industry,the latter is more important.

A firm's competitive advantages can only be sustained if it is protected by some form of "isolating mechanisms."

As markets become more turbulent and unpredictable,seizing opportunities to establish competitive advantage depends primarily upon:

The fact that a firm's "activity system" comprises closely linked,complementary activities simplifies the task of imitating a competitor's strategy.

In supplying "lifestyle" products which are designed to meet consumers' social and psychological needs,the key to effective differentiation is:

What is the difference between differentiation and segmentation?

One reason that the value chain analysis is a valuable tool for cost analysis is that cost drivers tend to be very different between the different activities of the firm.

Causal ambiguity-difficulties over diagnosing the sources of a rival's competitive advantage-creates uncertain imitability-uncertainty over the ability to replicate that competitive advantage.

Competitive advantage can be defined as:

Which of the following is not an isolating mechanism?

The principal strategy implication of the experience curve is that:

Banks spend more money on their head office buildings than most other large corporations because:

Sustainable competitive advantage can be established in all types of market-including those financial markets deemed to be "efficient."

Physical characteristics of a product are of little importance in determining its potential for differentiation

Most of the innovative business models deployed by e-commerce firms:

In retailing,the cost advantages of large retail chains (such as Wal-Mart in the US,Tesco in Britain,Metro in Germany,and Carrefour in France)is primarily the result of:

Economies of scale in activities such as R&D,new product development,advertising,and government lobbying arise mainly because of:

In strategic management,the expression "blue oceans" refers to:

A basic principle of Business Process Reengineering is that dramatic improvements in cost efficiency are better achieved through incremental improvements rather than fundamental redesign.