Question 1

The generic types of competitive strategies include

Accepted Answer

A)  build market share, maintain market share, and slowly surrender market share. 
B)  offensive strategies and defensive strategies. 
C)  low-cost provider, broad differentiation, focused low-cost, focused differentiation, and best-cost provider strategies. 
D)  low-cost/low-price strategies, high-quality/high-price strategies, medium-quality/medium-price strategies, low-cost/high-price strategies. 
E)  price leader strategies, price follower strategies, technology leader strategies, first-mover strategies, offensive strategies, and defensive strategies. 
A)  build market share, maintain market share, and slowly surrender market share. 
B)  offensive strategies and defensive strategies. 
C)  low-cost provider, broad differentiation, focused low-cost, focused differentiation, and best-cost provider strategies. 
D)  low-cost/low-price strategies, high-quality/high-price strategies, medium-quality/medium-price strategies, low-cost/high-price strategies. 
E)  price leader strategies, price follower strategies, technology leader strategies, first-mover strategies, offensive strategies, and defensive strategies.

Question 2

Often many firms in a pursuit of cost cutting overly concentrate on

Accepted Answer

A)  overly aggressive price cutting thereby ending up with lower, rather than higher profitability. 
B)  reducing costs that can be easily replicated and thus the cost advantage is not sustainable. 
C)  the zealous pursuit of cost reduction to the detriment of other important strategy profit moves. 
D)  ignoring competitive process or technological breakthroughs. 
E)  All of these. 
A)  overly aggressive price cutting thereby ending up with lower, rather than higher profitability. 
B)  reducing costs that can be easily replicated and thus the cost advantage is not sustainable. 
C)  the zealous pursuit of cost reduction to the detriment of other important strategy profit moves. 
D)  ignoring competitive process or technological breakthroughs. 
E)  All of these.

Question 3

A focused low-cost strategy seeks to achieve competitive advantage by

Accepted Answer

A)  outmatching competitors in offering niche members an absolute rock-bottom price. 
B)  delivering more value for the money than other competitors. 
C)  performing the primary value chain activities at a lower cost per unit than can the industry's low-cost leaders. 
D)  dominating more market niches in the industry via a lower cost and a lower price than any other rival. 
E)  serving buyers in the target market niche at a lower cost and lower price than rivals. 
A)  outmatching competitors in offering niche members an absolute rock-bottom price. 
B)  delivering more value for the money than other competitors. 
C)  performing the primary value chain activities at a lower cost per unit than can the industry's low-cost leaders. 
D)  dominating more market niches in the industry via a lower cost and a lower price than any other rival. 
E)  serving buyers in the target market niche at a lower cost and lower price than rivals.

Question 4

Easy-to-copy differentiating features

Accepted Answer

A)  do not offer the promise of sustainable competitive advantage. 
B)  are less expensive to integrate into a product or service offering. 
C)  tend to create as much value for consumers as difficult-to-copy differentiating features. 
D)  should be patented before other companies follow suit. 
E)  lead to vigorous price competition. 
A)  do not offer the promise of sustainable competitive advantage. 
B)  are less expensive to integrate into a product or service offering. 
C)  tend to create as much value for consumers as difficult-to-copy differentiating features. 
D)  should be patented before other companies follow suit. 
E)  lead to vigorous price competition.

Question 5

Perceived value and signaling value are often an important part of a successful differentiation strategy when

Accepted Answer

A)  the nature of differentiation is hard to quantify. 
B)  buyers are making a first-time purchase. 
C)  repurchase of the product or service is infrequent. 
D)  buyers are unsophisticated and unfamiliar with the capabilities of competing brands. 
E)  All of these. 
A)  the nature of differentiation is hard to quantify. 
B)  buyers are making a first-time purchase. 
C)  repurchase of the product or service is infrequent. 
D)  buyers are unsophisticated and unfamiliar with the capabilities of competing brands. 
E)  All of these.

Question 6

A low-cost leader can translate its low-cost advantage over rivals into superior profit performance by

Accepted Answer

A)  cutting its price to levels significantly below the prices of rivals. 
B)  using its low-cost edge to underprice competitors and attract price-sensitive buyers in large enough numbers to increase total profits or refraining from price cutting and using the low-cost advantage to earn a higher profit margin on each unit sold. 
C)  going all out to use its cost advantage to capture a dominant share of the market. 
D)  spending heavily on advertising to promote the fact that it charges the lowest prices in the industry. 
E)  outproducing rivals and thus having more units available to sell. 
A)  cutting its price to levels significantly below the prices of rivals. 
B)  using its low-cost edge to underprice competitors and attract price-sensitive buyers in large enough numbers to increase total profits or refraining from price cutting and using the low-cost advantage to earn a higher profit margin on each unit sold. 
C)  going all out to use its cost advantage to capture a dominant share of the market. 
D)  spending heavily on advertising to promote the fact that it charges the lowest prices in the industry. 
E)  outproducing rivals and thus having more units available to sell.

Question 7

While there are many routes to competitive advantage, they all involve

Accepted Answer

A)  building a brand name image that buyers trust. 
B)  delivering superior value to buyers in ways rivals cannot readily match. 
C)  achieving lower costs than rivals and becoming the industry's sales and market share leader. 
D)  finding effective and efficient ways to strengthen the company's competitive assets and to reduce its competitive liabilities. 
E)  getting in the best strategic group and dominating it. 
A)  building a brand name image that buyers trust. 
B)  delivering superior value to buyers in ways rivals cannot readily match. 
C)  achieving lower costs than rivals and becoming the industry's sales and market share leader. 
D)  finding effective and efficient ways to strengthen the company's competitive assets and to reduce its competitive liabilities. 
E)  getting in the best strategic group and dominating it.

Question 8

Broad differentiation strategies generally work best in market circumstances where

Accepted Answer

A)  buyer needs and preferences are too diverse to be fully satisfied by a standardized product. 
B)  most buyers have similar needs and use the product in the same ways. 
C)  the products of rivals are weakly differentiated and most competitors are resorting to clever advertising to try to set their product offerings apart. 
D)  buyers are price sensitive and buying switching costs are quite low. 
E)  the five competitive forces are strong. 
A)  buyer needs and preferences are too diverse to be fully satisfied by a standardized product. 
B)  most buyers have similar needs and use the product in the same ways. 
C)  the products of rivals are weakly differentiated and most competitors are resorting to clever advertising to try to set their product offerings apart. 
D)  buyers are price sensitive and buying switching costs are quite low. 
E)  the five competitive forces are strong.

Question 9

The most appealing approaches to differentiation are

Accepted Answer

A)  those that are the most costly to incorporate. 
B)  those that match the differentiating features offered by rivals in the industry. 
C)  those that can be made even more attractive to buyers via clever advertising. 
D)  those that appeal to the most affluent consumers. 
E)  those that are hard or expensive for rivals to duplicate and that also have considerable buyer appeal. 
A)  those that are the most costly to incorporate. 
B)  those that match the differentiating features offered by rivals in the industry. 
C)  those that can be made even more attractive to buyers via clever advertising. 
D)  those that appeal to the most affluent consumers. 
E)  those that are hard or expensive for rivals to duplicate and that also have considerable buyer appeal.

Question 10

In which of the following circumstances is a strategy to be the industry's overall low-cost provider not particularly well matched to the market situation?

Accepted Answer

A)  When the offerings of rival firms are essentially identical, standardized, commodity-like products 
B)  When there are few ways to achieve differentiation that have value to buyers 
C)  When price competition is especially vigorous 
D)  When buyers have widely varying needs and special requirements and when the cost of switching purchases from one seller to another are relatively high 
E)  When industry newcomers use introductory prices to build a customer base 
A)  When the offerings of rival firms are essentially identical, standardized, commodity-like products 
B)  When there are few ways to achieve differentiation that have value to buyers 
C)  When price competition is especially vigorous 
D)  When buyers have widely varying needs and special requirements and when the cost of switching purchases from one seller to another are relatively high 
E)  When industry newcomers use introductory prices to build a customer base

Question 11

In which one of the following market circumstances is a broad differentiation strategy generally not well suited?

Accepted Answer

A)  When buyer needs and preferences are diverse 
B)  When few rivals are pursuing a similar differentiation approach 
C)  When buyers are homogeneous in their needs and preferences and are generally satisfied with standardized product 
D)  When there are many ways to differentiate the product or service and many buyers perceive these differences as having value 
E)  When technological change is fast paced and competition revolves around rapidly evolving product features 
A)  When buyer needs and preferences are diverse 
B)  When few rivals are pursuing a similar differentiation approach 
C)  When buyers are homogeneous in their needs and preferences and are generally satisfied with standardized product 
D)  When there are many ways to differentiate the product or service and many buyers perceive these differences as having value 
E)  When technological change is fast paced and competition revolves around rapidly evolving product features

Question 12

Companies can pursue differentiation from many angles including

Accepted Answer

A)  providing a unique competitive product taste. 
B)  executing superior customer service. 
C)  ensuring engineering design and performance benefits. 
D)  providing products that ensue luxury and prestige. 
E)  All of these. 
A)  providing a unique competitive product taste. 
B)  executing superior customer service. 
C)  ensuring engineering design and performance benefits. 
D)  providing products that ensue luxury and prestige. 
E)  All of these.

Question 13

Which of the following is not one of the pitfalls of pursuing a differentiation strategy?

Accepted Answer

A)  Trying to strongly differentiate the company's product from those of rivals rather than be content with weak product differentiation 
B)  Over differentiating so that the features and attributes incorporated exceed buyer needs and requirements 
C)  Trying to charge too high a price premium for the differentiating features 
D)  Differentiating on features or attributes that rivals can easily copy 
E)  Overspending on efforts to differentiate the company's product offering 
A)  Trying to strongly differentiate the company's product from those of rivals rather than be content with weak product differentiation 
B)  Over differentiating so that the features and attributes incorporated exceed buyer needs and requirements 
C)  Trying to charge too high a price premium for the differentiating features 
D)  Differentiating on features or attributes that rivals can easily copy 
E)  Overspending on efforts to differentiate the company's product offering

Question 14

The major avenues for achieving a cost advantage over rivals include

Accepted Answer

A)  eliminating or curbing nonessential cost-producing activities and performing essential value chain activities more cost-effectively that rivals. 
B)  having a management team that accepts below-market salaries. 
C)  being a first mover in adopting the latest state-of-the-art technologies, especially those relating to low-cost manufacture. 
D)  outsourcing high-cost activities to offshore vendors. 
E)  paying lower wages to hourly workers than what rivals are paying workers. 
A)  eliminating or curbing nonessential cost-producing activities and performing essential value chain activities more cost-effectively that rivals. 
B)  having a management team that accepts below-market salaries. 
C)  being a first mover in adopting the latest state-of-the-art technologies, especially those relating to low-cost manufacture. 
D)  outsourcing high-cost activities to offshore vendors. 
E)  paying lower wages to hourly workers than what rivals are paying workers.

Question 15

For a best-cost provider strategy to be successful, a company must have

Accepted Answer

A)  excellent marketing and sales skills in convincing buyers to pay a premium price for the attributes/features incorporated in its product. 
B)  the capability to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes. 
C)  access to greater learning/experience curve effects and scale economies than rivals. 
D)  one of the best-known and most respected brand names in the industry. 
E)  a short, low-cost value chain. 
A)  excellent marketing and sales skills in convincing buyers to pay a premium price for the attributes/features incorporated in its product. 
B)  the capability to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes. 
C)  access to greater learning/experience curve effects and scale economies than rivals. 
D)  one of the best-known and most respected brand names in the industry. 
E)  a short, low-cost value chain.

Question 16

The pitfalls of a differentiation strategy include

Accepted Answer

A)  trying to differentiate on the basis of attributes or features that are easily copied. 
B)  choosing to differentiate on the basis of attributes that buyers do not perceive as valuable or worth paying for. 
C)  trying to charge too high a price premium for the differentiating features. 
D)  being timid and not striving to open up meaningful gaps in quality or service or performance features relative to the products of rivals. 
E)  All of these. 
A)  trying to differentiate on the basis of attributes or features that are easily copied. 
B)  choosing to differentiate on the basis of attributes that buyers do not perceive as valuable or worth paying for. 
C)  trying to charge too high a price premium for the differentiating features. 
D)  being timid and not striving to open up meaningful gaps in quality or service or performance features relative to the products of rivals. 
E)  All of these.

Question 17

A company's biggest vulnerability in employing a best-cost provider strategy is

Accepted Answer

A)  relying too heavily on outsourcing. 
B)  getting squeezed between the strategies of firms employing low-cost provider strategies and high-end differentiation strategies. 
C)  getting trapped in a price war with low-cost leaders. 
D)  being timid in cutting its prices far enough below high-end differentiators to win away many of their customers. 
E)  not having a sustainable distinctive competence in cost reduction. 
A)  relying too heavily on outsourcing. 
B)  getting squeezed between the strategies of firms employing low-cost provider strategies and high-end differentiation strategies. 
C)  getting trapped in a price war with low-cost leaders. 
D)  being timid in cutting its prices far enough below high-end differentiators to win away many of their customers. 
E)  not having a sustainable distinctive competence in cost reduction.

Question 18

Broad differentiation strategies are well suited for market circumstances where

Accepted Answer

A)  there are many ways to differentiate the product or service and many buyers perceive these differences as having value. 
B)  most buyers have the same needs and use the product in the same ways. 
C)  buyers are susceptible to clever advertising. 
D)  barriers to entry are high and suppliers have a low degree of bargaining power. 
E)  price competition is especially vigorous. 
A)  there are many ways to differentiate the product or service and many buyers perceive these differences as having value. 
B)  most buyers have the same needs and use the product in the same ways. 
C)  buyers are susceptible to clever advertising. 
D)  barriers to entry are high and suppliers have a low degree of bargaining power. 
E)  price competition is especially vigorous.

Question 19

Achieving a cost advantage over rivals entails

Accepted Answer

A)  concentrating on the primary activities portion of the value chain and outsourcing all support activities. 
B)  being a first mover in pursuing backward and forward integration and controlling as much of the industry value chain as possible. 
C)  performing value chain activities more cost-effectively than rivals and finding ways to eliminate or bypass some cost-producing activities. 
D)  minimizing R&D expenses and paying below-average wages and salaries to conserve on labor costs. 
E)  producing a standard product, redesigning the product infrequently, and having minimal advertising. 
A)  concentrating on the primary activities portion of the value chain and outsourcing all support activities. 
B)  being a first mover in pursuing backward and forward integration and controlling as much of the industry value chain as possible. 
C)  performing value chain activities more cost-effectively than rivals and finding ways to eliminate or bypass some cost-producing activities. 
D)  minimizing R&D expenses and paying below-average wages and salaries to conserve on labor costs. 
E)  producing a standard product, redesigning the product infrequently, and having minimal advertising.

Question 20

Opportunities to differentiate a company's product offering

Accepted Answer

A)  are always dependent on the capabilities of the company's R&D staff. 
B)  are more likely to be captured by highly skilled marketers. 
C)  can exist in supply chain activities, R&D, manufacturing activities, distribution and shipping, or marketing, sales, and customer service. 
D)  usually are tied to product quality and durability and product reliability and proliferation. 
E)  are most frequently attached to a product's brand image, performance, and reliability. 
A)  are always dependent on the capabilities of the company's R&D staff. 
B)  are more likely to be captured by highly skilled marketers. 
C)  can exist in supply chain activities, R&D, manufacturing activities, distribution and shipping, or marketing, sales, and customer service. 
D)  usually are tied to product quality and durability and product reliability and proliferation. 
E)  are most frequently attached to a product's brand image, performance, and reliability.

The generic types of competitive strategies include

Often many firms in a pursuit of cost cutting overly concentrate on

A focused low-cost strategy seeks to achieve competitive advantage by

Easy-to-copy differentiating features

Perceived value and signaling value are often an important part of a successful differentiation strategy when

A low-cost leader can translate its low-cost advantage over rivals into superior profit performance by

While there are many routes to competitive advantage, they all involve

Broad differentiation strategies generally work best in market circumstances where

The most appealing approaches to differentiation are

In which of the following circumstances is a strategy to be the industry's overall low-cost provider not particularly well matched to the market situation?

In which one of the following market circumstances is a broad differentiation strategy generally not well suited?

Companies can pursue differentiation from many angles including

Which of the following is not one of the pitfalls of pursuing a differentiation strategy?

The major avenues for achieving a cost advantage over rivals include

For a best-cost provider strategy to be successful, a company must have

The pitfalls of a differentiation strategy include

A company's biggest vulnerability in employing a best-cost provider strategy is

Broad differentiation strategies are well suited for market circumstances where

Achieving a cost advantage over rivals entails

Opportunities to differentiate a company's product offering

What Is Strategy and Why Is It Important

Charting a Companys Direction: Vision and Mission, Objectives, and Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources, Cost Position, and Competitiveness

Supplementing the Chosen Competitive Strategy-Other Important Strategy Choices

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Strategy, Ethics, and Corporate Social Responsibility

Superior Strategy Execution-Another Path to Competitive Advantage

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Exam 5: The Five Generic Competitive Strategies

The generic types of competitive strategies include

Often many firms in a pursuit of cost cutting overly concentrate on

A focused low-cost strategy seeks to achieve competitive advantage by

Easy-to-copy differentiating features

Perceived value and signaling value are often an important part of a successful differentiation strategy when

A low-cost leader can translate its low-cost advantage over rivals into superior profit performance by

While there are many routes to competitive advantage, they all involve

Broad differentiation strategies generally work best in market circumstances where

The most appealing approaches to differentiation are

In which of the following circumstances is a strategy to be the industry's overall low-cost provider not particularly well matched to the market situation?

In which one of the following market circumstances is a broad differentiation strategy generally not well suited?

Companies can pursue differentiation from many angles including

Which of the following is not one of the pitfalls of pursuing a differentiation strategy?

The major avenues for achieving a cost advantage over rivals include

For a best-cost provider strategy to be successful, a company must have

The pitfalls of a differentiation strategy include

A company's biggest vulnerability in employing a best-cost provider strategy is

Broad differentiation strategies are well suited for market circumstances where

Achieving a cost advantage over rivals entails

Opportunities to differentiate a company's product offering

What Is Strategy and Why Is It Important

Charting a Companys Direction: Vision and Mission, Objectives, and Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources, Cost Position, and Competitiveness

Supplementing the Chosen Competitive Strategy-Other Important Strategy Choices

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Strategy, Ethics, and Corporate Social Responsibility

Superior Strategy Execution-Another Path to Competitive Advantage

Filters