Question 1

A focused differentiation strategy aims at securing competitive advantage

Accepted Answer

A)  by providing niche members with a top-of-the-line product at a premium price. 
B)  by catering to buyers looking for an upscale product at an attractively low price. 
C)  with a product or service offering carefully designed to appeal to the unique preferences and needs of a narrow,well-defined group of buyers. 
D)  by developing product attributes that no other company in the industry has. 
E)  by convincing affluent buyers that the company has a true world-class product. 
A)  by providing niche members with a top-of-the-line product at a premium price. 
B)  by catering to buyers looking for an upscale product at an attractively low price. 
C)  with a product or service offering carefully designed to appeal to the unique preferences and needs of a narrow,well-defined group of buyers. 
D)  by developing product attributes that no other company in the industry has. 
E)  by convincing affluent buyers that the company has a true world-class product.

Question 2

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 3

Identify uniqueness drivers in a company's value chain.Explain how these drivers impact a firm's generic strategy.

Accepted Answer

The answer of Identify uniqueness drivers in a company's value...

Question 4

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 5

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 6

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 7

A company that succeeds in differentiating its product offering from those of its rivals can usually

Accepted Answer

A)  avoid having to compete on the basis of simply a low price. 
B)  charge a price premium for its product (because buyers see its differentiating features as worth something extra). 
C)  increase unit sales (because of the attraction of its differentiating product attributes). 
D)  gain buyer loyalty to its brand (because some customers will have a strong preference for the company's differentiating features). 
E)  All of these. 
A)  avoid having to compete on the basis of simply a low price. 
B)  charge a price premium for its product (because buyers see its differentiating features as worth something extra). 
C)  increase unit sales (because of the attraction of its differentiating product attributes). 
D)  gain buyer loyalty to its brand (because some customers will have a strong preference for the company's differentiating features). 
E)  All of these.

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

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 10

In what market and competitive circumstances are focused low-cost and focused differentiation strategies attractive?

Accepted Answer

The answer of In what market and competitive circumstances are...

Question 11

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 12

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 13

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 14

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 15

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 16

One of the big dangers in crafting a competitive strategy is that managers,torn between the pros and cons of the various generic strategies,will opt for "stuck in the middle" strategies that represent compromises between lower costs and greater differentiation and between broad and narrow market appeal.True or false? Explain your answer.

Accepted Answer

The answer of One of the big dangers in crafting...

Question 17

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 18

A company's competitive strategy should

Accepted Answer

A)  be well matched to its internal situation and predicated on leveraging its collection of competitively valuable resources and competencies. 
B)  be aligned toward being at least an average performer within the industry. 
C)  be well attuned to doing an outstanding job of satisfying the needs and expectations of niche buyers. 
D)  have the resources and capabilities to incorporate standard attributes into its product offering. 
E)  ensure it is designed to concentrate on a small range of products so it can react quickly to competitive moves. 
A)  be well matched to its internal situation and predicated on leveraging its collection of competitively valuable resources and competencies. 
B)  be aligned toward being at least an average performer within the industry. 
C)  be well attuned to doing an outstanding job of satisfying the needs and expectations of niche buyers. 
D)  have the resources and capabilities to incorporate standard attributes into its product offering. 
E)  ensure it is designed to concentrate on a small range of products so it can react quickly to competitive moves.

A focused differentiation strategy aims at securing competitive advantage

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

Identify uniqueness drivers in a company's value chain.Explain how these drivers impact a firm's generic strategy.

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

Companies can pursue differentiation from many angles including

Broad differentiation strategies are well suited for market circumstances where

A company that succeeds in differentiating its product offering from those of its rivals can usually

Broad differentiation strategies generally work best in market circumstances where

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

In what market and competitive circumstances are focused low-cost and focused differentiation strategies attractive?

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

The generic types of competitive strategies include

Achieving a cost advantage over rivals entails

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

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

Easy-to-copy differentiating features

A company's competitive strategy should

Strategy, Business Models, and Competitive Advantage

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

Evaluating a Companys External Environment

Evaluating a Companys Resources, Capabilities, and Competitiveness

Strengthening a Companys Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Superior Strategy Execution-Another Path to Competitive Advantage

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Exam 5: The Five Generic Competitive Strategies

A focused differentiation strategy aims at securing competitive advantage

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

Identify uniqueness drivers in a company's value chain.Explain how these drivers impact a firm's generic strategy.

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

Companies can pursue differentiation from many angles including

Broad differentiation strategies are well suited for market circumstances where

A company that succeeds in differentiating its product offering from those of its rivals can usually

Broad differentiation strategies generally work best in market circumstances where

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

In what market and competitive circumstances are focused low-cost and focused differentiation strategies attractive?

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

The generic types of competitive strategies include

Achieving a cost advantage over rivals entails

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

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

Easy-to-copy differentiating features

A company's competitive strategy should

Strategy, Business Models, and Competitive Advantage

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

Evaluating a Companys External Environment

Evaluating a Companys Resources, Capabilities, and Competitiveness

Strengthening a Companys Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Superior Strategy Execution-Another Path to Competitive Advantage

Filters