Question 1

A broad differentiation strategy works best in situations characterized by

Accepted Answer

A) slow-paced technological change and infrequent new or improved product introductions. 
B) similar buyer needs and uses of the product. 
C) low switching costs to rival brands incurred by buyers. 
D) low bargaining power and frequent purchases by buyers. 
E) fast-paced technological change and rapidly evolving product features that drive competition. 
A) slow-paced technological change and infrequent new or improved product introductions. 
B) similar buyer needs and uses of the product. 
C) low switching costs to rival brands incurred by buyers. 
D) low bargaining power and frequent purchases by buyers. 
E) fast-paced technological change and rapidly evolving product features that drive competition.

Question 2

Companies can pursue differentiation from many angles except

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) investing in managerial productivity and enjoying experience curve effects. 
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) investing in managerial productivity and enjoying experience curve effects.

Question 3

What are the distinctive features of a focused differentiation strategy? How is it different from a broad differentiation strategy?

Accepted Answer

A focused differentiation strategy is ke

Question 4

A company's competitive strategy deals with

Accepted Answer

A) management's game plan for securing a competitive advantage relative to rivals. 
B) what its strategy will be in such functional areas as R&D,production,sales and marketing,distribution,finance and accounting,and so on. 
C) its efforts to change its position on the industry's strategic group map. 
D) its plans for entering into strategic alliances,utilizing mergers or acquisitions to strengthen its market position,outsourcing some in-house activities to outside specialists,and integrating forward or backward. 
E) tweaking the value chain drivers to make them more cost competitive with rivals. 
A) management's game plan for securing a competitive advantage relative to rivals. 
B) what its strategy will be in such functional areas as R&D,production,sales and marketing,distribution,finance and accounting,and so on. 
C) its efforts to change its position on the industry's strategic group map. 
D) its plans for entering into strategic alliances,utilizing mergers or acquisitions to strengthen its market position,outsourcing some in-house activities to outside specialists,and integrating forward or backward. 
E) tweaking the value chain drivers to make them more cost competitive with rivals.

Question 5

A differentiation strategy works best when

Accepted Answer

A) buyers' needs are homogeneous. 
B) many rival firms are also pursuing a differentiation approach. 
C) firms have ample excess cash to invest in R&D activities. 
D) there are few other ways to make a product unique to buyers. 
E) technological change is fast-paced and competition revolves around rapidly evolving product features. 
A) buyers' needs are homogeneous. 
B) many rival firms are also pursuing a differentiation approach. 
C) firms have ample excess cash to invest in R&D activities. 
D) there are few other ways to make a product unique to buyers. 
E) technological change is fast-paced and competition revolves around rapidly evolving product features.

Question 6

Best-cost provider strategies are appealing in those market situations where

Accepted Answer

A) buyers are more quality-conscious than price-conscious. 
B) diverse buyer preferences make product differentiation the norm and where a large number of value-conscious buyers can be induced to purchase mid-range products. 
C) there are numerous buyer segments,buyer needs are diverse across these segments,only a few of the segments are growing rapidly,and sellers' products are strongly differentiated. 
D) buyers are more performance-conscious than value-conscious. 
E) a company is positioned between rivals who have ultra-low prices and rivals who have top-notch products in terms of both quality and performance. 
A) buyers are more quality-conscious than price-conscious. 
B) diverse buyer preferences make product differentiation the norm and where a large number of value-conscious buyers can be induced to purchase mid-range products. 
C) there are numerous buyer segments,buyer needs are diverse across these segments,only a few of the segments are growing rapidly,and sellers' products are strongly differentiated. 
D) buyers are more performance-conscious than value-conscious. 
E) a company is positioned between rivals who have ultra-low prices and rivals who have top-notch products in terms of both quality and performance.

Question 7

The value to a company of pursuing a low-cost provider strategy is contingent upon

Accepted Answer

A) the leader's ability to combine the cost advantage with a reputation for good quality. 
B) the leader's ability to excel in manufacturing innovation so as to continuously reduce its manufacturing costs. 
C) the leader's ability to attain the biggest market share in the industry. 
D) whether or not it is easy or inexpensive for rivals to copy the low-cost leader's methods or otherwise match its low costs. 
E) the aggressiveness with which the low-cost leader pursues converting the cost advantage into the absolute lowest possible costs. 
A) the leader's ability to combine the cost advantage with a reputation for good quality. 
B) the leader's ability to excel in manufacturing innovation so as to continuously reduce its manufacturing costs. 
C) the leader's ability to attain the biggest market share in the industry. 
D) whether or not it is easy or inexpensive for rivals to copy the low-cost leader's methods or otherwise match its low costs. 
E) the aggressiveness with which the low-cost leader pursues converting the cost advantage into the absolute lowest possible costs.

Question 8

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,durability,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,durability,reliability,and proliferation. 
E) are most frequently attached to a product's brand image,performance,and reliability.

Question 9

The greatest danger or risk of an unsound best-cost provider strategy is

Accepted Answer

A) that buyers will be highly skeptical about paying a relatively low price for upscale attributes/features. 
B) not establishing strong alliances and partnerships with key suppliers. 
C) that low-cost leaders will be able to steal away some customers on the basis of a lower price,and high-end differentiators will be able to steal away customers with the appeal of better product attributes. 
D) that it will be unable to achieve top-notch quality at a rock-bottom cost. 
E) becoming too highly integrated and not relying enough on outsourcing. 
A) that buyers will be highly skeptical about paying a relatively low price for upscale attributes/features. 
B) not establishing strong alliances and partnerships with key suppliers. 
C) that low-cost leaders will be able to steal away some customers on the basis of a lower price,and high-end differentiators will be able to steal away customers with the appeal of better product attributes. 
D) that it will be unable to achieve top-notch quality at a rock-bottom cost. 
E) becoming too highly integrated and not relying enough on outsourcing.

Question 10

Broad differentiation strategies are well-suited for market conditions 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 11

A fast-food restaurant stocks bread,meat,sauces,and other main ingredients,but does not assemble and cook its burgers and sandwiches until a customer places an order.Which cost driver is the restaurant efficiently using to cut costs?

Accepted Answer

A) Economies of scale 
B) Capacity utilization 
C) Supply chain efficiencies 
D) Bargaining power 
E) Incentive systems and culture 
A) Economies of scale 
B) Capacity utilization 
C) Supply chain efficiencies 
D) Bargaining power 
E) Incentive systems and culture

Question 12

Which of the following is not a value driver of a broad differentiation strategy?

Accepted Answer

A) Seeking out the highest quality inputs 
B) Utilizing just-in-time inventories and made-to-order products when customer demand rises 
C) Emphasizing human resource management activities that improve the skills,expertise,and knowledge of company personnel 
D) Improving customer service or add extra services 
E) Creating product features that appeal to a wide range of buyers 
A) Seeking out the highest quality inputs 
B) Utilizing just-in-time inventories and made-to-order products when customer demand rises 
C) Emphasizing human resource management activities that improve the skills,expertise,and knowledge of company personnel 
D) Improving customer service or add extra services 
E) Creating product features that appeal to a wide range of buyers

Question 13

A differentiation-based competitive advantage

Accepted Answer

A) nearly always is attached to the quality and service aspects of a company's product offering. 
B) most often is the result of highly effective marketing and advertising campaigns designed to build awareness and recognition of the product or service offering. 
C) requires developing at least one distinctive competence that buyers consider valuable. 
D) hinges on a company's success in developing top-of-the-line product features that will command the biggest price premium in the industry. 
E) often hinges on incorporating features that: (1)raise the performance of the product, (2)lower the buyer's overall costs of using the company's product, (3)enhance buyer satisfaction in intangible or noneconomic ways,or (4)deliver value to customers by exploiting competitive capabilities that rivals cannot match. 
A) nearly always is attached to the quality and service aspects of a company's product offering. 
B) most often is the result of highly effective marketing and advertising campaigns designed to build awareness and recognition of the product or service offering. 
C) requires developing at least one distinctive competence that buyers consider valuable. 
D) hinges on a company's success in developing top-of-the-line product features that will command the biggest price premium in the industry. 
E) often hinges on incorporating features that: (1)raise the performance of the product, (2)lower the buyer's overall costs of using the company's product, (3)enhance buyer satisfaction in intangible or noneconomic ways,or (4)deliver value to customers by exploiting competitive capabilities that rivals cannot match.

Question 14

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

Accepted Answer

As opposed to broader market strategies,

Question 15

Examples of important cost drivers in a company's value chain do not include

Accepted Answer

A) input costs. 
B) capacity utilization. 
C) learning and experience. 
D) production technology and design. 
E) customer service. 
A) input costs. 
B) capacity utilization. 
C) learning and experience. 
D) production technology and design. 
E) customer service.

Question 16

A pitfall to avoid in pursuing a differentiation strategy is

Accepted Answer

A) charging a premium price for the differentiating features. 
B) spending on activities to differentiate the company's product to enhance profitability. 
C) meeting and exceeding the meaningful gaps in quality,performance,service,and other attractive differentiating attributes offered by rivals. 
D) choosing a product offering that supports buyers' indifference to rival brands' offerings. 
E) trying to differentiate on the basis of attributes or features that are easily copied. 
A) charging a premium price for the differentiating features. 
B) spending on activities to differentiate the company's product to enhance profitability. 
C) meeting and exceeding the meaningful gaps in quality,performance,service,and other attractive differentiating attributes offered by rivals. 
D) choosing a product offering that supports buyers' indifference to rival brands' offerings. 
E) trying to differentiate on the basis of attributes or features that are easily copied.

Question 17

Which of the following are not distinguishing features of a company's successful best-cost provider strategy?

Accepted Answer

A) It develops core competencies that allow differentiating attributes to be incorporated at a low cost. 
B) It has unmatched efficiency in managing essential value chain activities. 
C) It seeks to deliver superior value to buyers by satisfying their expectations on key quality/service/features/performance attributes and beating their expectations on price (given what rivals are charging for much the same attributes). 
D) It seeks to be the low-cost provider in the largest and fastest-growing (or best)market segment. 
E) It enjoys a competitive advantage based on more value for the money. 
A) It develops core competencies that allow differentiating attributes to be incorporated at a low cost. 
B) It has unmatched efficiency in managing essential value chain activities. 
C) It seeks to deliver superior value to buyers by satisfying their expectations on key quality/service/features/performance attributes and beating their expectations on price (given what rivals are charging for much the same attributes). 
D) It seeks to be the low-cost provider in the largest and fastest-growing (or best)market segment. 
E) It enjoys a competitive advantage based on more value for the money.

Question 18

Domino's Pizza has a well-known slogan: "We'll deliver in 30 minutes or less,or it's free!" By using this slogan,what has the pizza maker achieved?

Accepted Answer

A) Given a sense of exclusivity to its customers 
B) Increased its ability to charge a price premium for its product (because buyers see its differentiating features as worth something extra) 
C) Coordinated with suppliers to better address customer needs 
D) Created a new delivery system 
E) Built a unique customer value proposition 
A) Given a sense of exclusivity to its customers 
B) Increased its ability to charge a price premium for its product (because buyers see its differentiating features as worth something extra) 
C) Coordinated with suppliers to better address customer needs 
D) Created a new delivery system 
E) Built a unique customer value proposition

Question 19

A route to take in developing a differentiation advantage includes

Accepted Answer

A) signaling value by targeting sophisticated buyers. 
B) incorporating intangible features that enhance buyer satisfaction in economic ways. 
C) emphasizing high quality and performance of products through a standard and simple,no-fuss packaging. 
D) incorporating product attributes and user features that raise the buyer's overall costs,but keep the price low. 
E) incorporating tangible features that add functionality,increase customer satisfaction with the product specifications,functions,and styling. 
A) signaling value by targeting sophisticated buyers. 
B) incorporating intangible features that enhance buyer satisfaction in economic ways. 
C) emphasizing high quality and performance of products through a standard and simple,no-fuss packaging. 
D) incorporating product attributes and user features that raise the buyer's overall costs,but keep the price low. 
E) incorporating tangible features that add functionality,increase customer satisfaction with the product specifications,functions,and styling.

Question 20

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 firms employing low-cost provider strategies and those using 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 firms employing low-cost provider strategies and those using 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 broad differentiation strategy works best in situations characterized by

Companies can pursue differentiation from many angles except

What are the distinctive features of a focused differentiation strategy? How is it different from a broad differentiation strategy?

A company's competitive strategy deals with

A differentiation strategy works best when

Best-cost provider strategies are appealing in those market situations where

The value to a company of pursuing a low-cost provider strategy is contingent upon

Opportunities to differentiate a company's product offering

The greatest danger or risk of an unsound best-cost provider strategy is

Broad differentiation strategies are well-suited for market conditions where

A fast-food restaurant stocks bread,meat,sauces,and other main ingredients,but does not assemble and cook its burgers and sandwiches until a customer places an order.Which cost driver is the restaurant efficiently using to cut costs?

Which of the following is not a value driver of a broad differentiation strategy?

A differentiation-based competitive advantage

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

Examples of important cost drivers in a company's value chain do not include

A pitfall to avoid in pursuing a differentiation strategy is

Which of the following are not distinguishing features of a company's successful best-cost provider strategy?

Domino's Pizza has a well-known slogan: "We'll deliver in 30 minutes or less,or it's free!" By using this slogan,what has the pizza maker achieved?

A route to take in developing a differentiation advantage includes

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

Strategy,business Models,and Competitive Advantage

Strategy Formulation,execution,and Governance

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 Executionanother Path to Competitive Advantage

Filters

Exam 5: The Five Generic Competitive Strategies

A broad differentiation strategy works best in situations characterized by

Companies can pursue differentiation from many angles except

What are the distinctive features of a focused differentiation strategy? How is it different from a broad differentiation strategy?

A company's competitive strategy deals with

A differentiation strategy works best when

Best-cost provider strategies are appealing in those market situations where

The value to a company of pursuing a low-cost provider strategy is contingent upon

Opportunities to differentiate a company's product offering

The greatest danger or risk of an unsound best-cost provider strategy is

Broad differentiation strategies are well-suited for market conditions where

A fast-food restaurant stocks bread,meat,sauces,and other main ingredients,but does not assemble and cook its burgers and sandwiches until a customer places an order.Which cost driver is the restaurant efficiently using to cut costs?

Which of the following is not a value driver of a broad differentiation strategy?

A differentiation-based competitive advantage

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

Examples of important cost drivers in a company's value chain do not include

A pitfall to avoid in pursuing a differentiation strategy is

Which of the following are not distinguishing features of a company's successful best-cost provider strategy?

Domino's Pizza has a well-known slogan: "We'll deliver in 30 minutes or less,or it's free!" By using this slogan,what has the pizza maker achieved?

A route to take in developing a differentiation advantage includes

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

Strategy,business Models,and Competitive Advantage

Strategy Formulation,execution,and Governance

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 Executionanother Path to Competitive Advantage

Filters