Question 1

Which one of the following does not represent market circumstances that make a focused low-cost or focused differentiation strategy attractive?

Accepted Answer

A)  When it is costly or difficult for multisegment competitors to meet the specialized needs of the target market niche and at the same time satisfy the expectations of their mainstream customers 
B)  When the industry has many different segments and market niches, thereby allowing a focuser to pick an attractive niche suited to its resource strengths and capabilities 
C)  When industry leaders have chosen not to compete in the niche 
D)  When the target market niche is big enough to be profitable and offers good growth potential 
E)  When buyers are not strongly brand loyal and a large number of other rivals are attempting to specialize in the same target segment 
A)  When it is costly or difficult for multisegment competitors to meet the specialized needs of the target market niche and at the same time satisfy the expectations of their mainstream customers 
B)  When the industry has many different segments and market niches, thereby allowing a focuser to pick an attractive niche suited to its resource strengths and capabilities 
C)  When industry leaders have chosen not to compete in the niche 
D)  When the target market niche is big enough to be profitable and offers good growth potential 
E)  When buyers are not strongly brand loyal and a large number of other rivals are attempting to specialize in the same target segment

Question 2

Which of the following is not one of the ways that a company can achieve a cost advantage by revamping its value chain?

Accepted Answer

A)  Cutting out distributors and dealers by selling direct to customers 
B)  Replacing certain value chain activities with faster and cheaper online technology 
C)  Increasing production capacity and then striving hard to operate at full capacity 
D)  Relocating facilities so as to curb the need for shipping and handling activities 
E)  Streamlining operations by eliminating low value-added or unnecessary work steps and activities 
A)  Cutting out distributors and dealers by selling direct to customers 
B)  Replacing certain value chain activities with faster and cheaper online technology 
C)  Increasing production capacity and then striving hard to operate at full capacity 
D)  Relocating facilities so as to curb the need for shipping and handling activities 
E)  Streamlining operations by eliminating low value-added or unnecessary work steps and activities

Question 3

A low-cost leader's basis for competitive advantage is

Accepted Answer

A)  lower prices than rival firms. 
B)  using a low-cost/low-price approach to gain the biggest market share. 
C)  high buyer switching costs. 
D)  lower overall costs than competitors. 
E)  higher unit sales than rivals. 
A)  lower prices than rival firms. 
B)  using a low-cost/low-price approach to gain the biggest market share. 
C)  high buyer switching costs. 
D)  lower overall costs than competitors. 
E)  higher unit sales than rivals.

Question 4

Which of the following is not one of the five generic types of competitive strategy?

Accepted Answer

A)  Focused low-cost provider strategy 
B)  Broad differentiation strategy 
C)  Overall low-cost provider strategy 
D)  Focused differentiation strategy 
E)  Market share dominator strategy 
A)  Focused low-cost provider strategy 
B)  Broad differentiation strategy 
C)  Overall low-cost provider strategy 
D)  Focused differentiation strategy 
E)  Market share dominator strategy

Question 5

The target market of a best-cost provider is

Accepted Answer

A)  value-conscious buyers. 
B)  brand-conscious buyers. 
C)  price-sensitive buyers. 
D)  middle-income buyers. 
E)  young adults (in the 18-35 age group). 
A)  value-conscious buyers. 
B)  brand-conscious buyers. 
C)  price-sensitive buyers. 
D)  middle-income buyers. 
E)  young adults (in the 18-35 age group).

Question 6

A broad differentiation strategy generally produces the best results in situations where

Accepted Answer

A)  buyer brand loyalty is low. 
B)  few rivals are following a similar differentiation approach. 
C)  new and improved products are introduced only infrequently. 
D)  most rivals are seeking to differentiate their products on most of the same features and attributes. 
E)  price competition is vigorous. 
A)  buyer brand loyalty is low. 
B)  few rivals are following a similar differentiation approach. 
C)  new and improved products are introduced only infrequently. 
D)  most rivals are seeking to differentiate their products on most of the same features and attributes. 
E)  price competition is vigorous.

Question 7

Which of the following is not one of the pitfalls of a low-cost provider strategy?

Accepted Answer

A)  Overly aggressive price cutting 
B)  Using a cost-based advantage to improve the company's bargaining position with high-volume buyers 
C)  Relying on an approach to reducing costs that can be easily copied by rivals 
D)  Cutting prices more than the size of a company's cost advantage 
E)  Becoming too fixated on cost reductions so that the company's products are too features-poor 
A)  Overly aggressive price cutting 
B)  Using a cost-based advantage to improve the company's bargaining position with high-volume buyers 
C)  Relying on an approach to reducing costs that can be easily copied by rivals 
D)  Cutting prices more than the size of a company's cost advantage 
E)  Becoming too fixated on cost reductions so that the company's products are too features-poor

Question 8

The risks of a focused strategy based on either low-cost or differentiation include

Accepted Answer

A)  the chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace. 
B)  the potential for the preferences and needs of niche members to shift over time toward many of the same product attributes and capabilities desired by buyers in the mainstream portion of the market. 
C)  the potential for the segment to be highly vulnerable to economic cycles. 
D)  the potential for segment growth to race beyond the production or service capabilities of incumbent firms. 
E)  All of these. 
A)  the chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace. 
B)  the potential for the preferences and needs of niche members to shift over time toward many of the same product attributes and capabilities desired by buyers in the mainstream portion of the market. 
C)  the potential for the segment to be highly vulnerable to economic cycles. 
D)  the potential for segment growth to race beyond the production or service capabilities of incumbent firms. 
E)  All of these.

Question 9

The advantages of focusing a company's entire competitive effort on a single market niche allows for

Accepted Answer

A)  going after a national customer base with a "something for everyone" lineup of models. 
B)  scaling operations to serve the customer market segment. 
C)  utilizing the full depth of the company's resources across a broad base of customers. 
D)  executing competencies and capabilities better than competitors. 
E)  All of these. 
A)  going after a national customer base with a "something for everyone" lineup of models. 
B)  scaling operations to serve the customer market segment. 
C)  utilizing the full depth of the company's resources across a broad base of customers. 
D)  executing competencies and capabilities better than competitors. 
E)  All of these.

Which one of the following does not represent market circumstances that make a focused low-cost or focused differentiation strategy attractive?

Which of the following is not one of the ways that a company can achieve a cost advantage by revamping its value chain?

A low-cost leader's basis for competitive advantage is

Which of the following is not one of the five generic types of competitive strategy?

The target market of a best-cost provider is

A broad differentiation strategy generally produces the best results in situations where

Which of the following is not one of the pitfalls of a low-cost provider strategy?

The risks of a focused strategy based on either low-cost or differentiation include

The advantages of focusing a company's entire competitive effort on a single market niche allows for

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

Which one of the following does not represent market circumstances that make a focused low-cost or focused differentiation strategy attractive?

Which of the following is not one of the ways that a company can achieve a cost advantage by revamping its value chain?

A low-cost leader's basis for competitive advantage is

Which of the following is not one of the five generic types of competitive strategy?

The target market of a best-cost provider is

A broad differentiation strategy generally produces the best results in situations where

Which of the following is not one of the pitfalls of a low-cost provider strategy?

The risks of a focused strategy based on either low-cost or differentiation include

The advantages of focusing a company's entire competitive effort on a single market niche allows for

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