Question 1

The uniqueness and magnitude of the customer value created by a firm's strategy are ultimately determined by the firm's management.

Accepted Answer

A) True 
 B)False

Question 2

New entrants in an industry push prices downward and squeeze margins, resulting in reduced industry profitability.

Accepted Answer

A) True 
 B)False

Question 3

According to Michael Porter, ________ is a generic strategy in which a company can offer lower prices than the competition to a narrow target market.

Accepted Answer

A)  focused differentiation 
B)  product differentiation 
C)  cost leadership 
D)  cost focus 
A)  focused differentiation 
B)  product differentiation 
C)  cost leadership 
D)  cost focus

Question 4

A narrow-focus strategy can be combined with differentiation-advantage strategies but not with cost-leadership strategies.

Accepted Answer

A) True 
 B)False

Question 5

Governments are not considered determinants but can exert their influence on determinants.

Accepted Answer

A) True 
 B)False

Question 6

According to Michael Porter, the buyers in an industry enjoy bargaining power when ________.

Accepted Answer

A)  they are planning to integrate horizontally 
B)  they purchase in large quantities from supplier firms 
C)  supplier products represent a small portion of the buyers' costs 
D)  the supplier's products are highly differentiated 
A)  they are planning to integrate horizontally 
B)  they purchase in large quantities from supplier firms 
C)  supplier products represent a small portion of the buyers' costs 
D)  the supplier's products are highly differentiated

Question 7

Chance events are occurrences that are beyond the control of firms, industries, and usually governments.

Accepted Answer

A) True 
 B)False

Question 8

According to Michael Porter, motivation is one of the local things that distant rivals will find hard to match.

Accepted Answer

A) True 
 B)False

Question 9

Suppliers enjoy bargaining power when their products or services carry low switching costs.

Accepted Answer

A) True 
 B)False

Question 10

The effects of global competition have been highly disadvantageous for consumers around the world.

Accepted Answer

A) True 
 B)False

Question 11

According to Porter, what are the different barriers that new entrants to an industry face?

Accepted Answer

Porter describes eight major sources of

Question 12

Richard D'Aveni notes that in today's business environment, market stability is high due to long product life cycles.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is scarcer in nature, requires sustained investment, and leads to sustainable international competitive advantage?

Accepted Answer

A)  advanced factors 
B)  basic factors 
C)  human resources 
D)  physical resources 
A)  advanced factors 
B)  basic factors 
C)  human resources 
D)  physical resources

Question 14

The reluctance of U.S. manufacturers to produce small cars for smaller unit profits despite the growing preference of U.S. customers for small cars is a classic example of ________.

Accepted Answer

A)  marketing myopia 
B)  vertical disintegration 
C)  diseconomies of scale 
D)  diseconomies of scope 
A)  marketing myopia 
B)  vertical disintegration 
C)  diseconomies of scale 
D)  diseconomies of scope

Question 15

A cost-focus strategy focuses on a narrow target segment.

Accepted Answer

A) True 
 B)False

Question 16

The availability of substitute products places limits on the prices market leaders can charge in an industry.

Accepted Answer

A) True 
 B)False

Question 17

________ are geographic concentrations of interconnected companies and institutions in a particular field, which constitute a critical mass.

Accepted Answer

A)  Districts 
B)  Clusters 
C)  Mill towns 
D)  Creative cities 
A)  Districts 
B)  Clusters 
C)  Mill towns 
D)  Creative cities

Question 18

According to Michael Porter, access-based positioning occurs when a company ________.

Accepted Answer

A)  satisfies a broad set of needs of all the customers in a wide segment 
B)  limits its product offering in order to minimize its prices 
C)  uniquely or preferentially reaches a specific market 
D)  focuses on the cost leadership generic strategy alone 
A)  satisfies a broad set of needs of all the customers in a wide segment 
B)  limits its product offering in order to minimize its prices 
C)  uniquely or preferentially reaches a specific market 
D)  focuses on the cost leadership generic strategy alone

Question 19

Cost leadership is a sustainable source of competitive advantage only if barriers exist that prevents competitors from achieving the same low costs.

Accepted Answer

A) True 
 B)False

Question 20

A country's size and location are considered as its physical resources.

Accepted Answer

A) True 
 B)False

The uniqueness and magnitude of the customer value created by a firm's strategy are ultimately determined by the firm's management.

New entrants in an industry push prices downward and squeeze margins, resulting in reduced industry profitability.

According to Michael Porter, ________ is a generic strategy in which a company can offer lower prices than the competition to a narrow target market.

A narrow-focus strategy can be combined with differentiation-advantage strategies but not with cost-leadership strategies.

Governments are not considered determinants but can exert their influence on determinants.

According to Michael Porter, the buyers in an industry enjoy bargaining power when ________.

Chance events are occurrences that are beyond the control of firms, industries, and usually governments.

According to Michael Porter, motivation is one of the local things that distant rivals will find hard to match.

Suppliers enjoy bargaining power when their products or services carry low switching costs.

The effects of global competition have been highly disadvantageous for consumers around the world.

According to Porter, what are the different barriers that new entrants to an industry face?

Richard D'Aveni notes that in today's business environment, market stability is high due to long product life cycles.

Which of the following is scarcer in nature, requires sustained investment, and leads to sustainable international competitive advantage?

The reluctance of U.S. manufacturers to produce small cars for smaller unit profits despite the growing preference of U.S. customers for small cars is a classic example of ________.

A cost-focus strategy focuses on a narrow target segment.

The availability of substitute products places limits on the prices market leaders can charge in an industry.

________ are geographic concentrations of interconnected companies and institutions in a particular field, which constitute a critical mass.

According to Michael Porter, access-based positioning occurs when a company ________.

Cost leadership is a sustainable source of competitive advantage only if barriers exist that prevents competitors from achieving the same low costs.

A country's size and location are considered as its physical resources.

Introduction to Global Marketing

The Global Economic Environment

The Political, Legal, and Regulatory Environments of Global Marketing

The Global Cultural Environment

Global Customers

Global Marketing Information Systems and Research

Segmentation, Targeting, and Positioning

Global Entry and Expansion Strategies

Product Decisions

Pricing Decisions

Global Marketing Channels

Global Integrated Marketing Communications

Global Organization and Leadership: Managing the Global Marketing Effort

Global Corporate Social Responsibility and Environmental Sustainability

The Future of Global Marketing

Filters

Exam 9: Competitive Analysis and Strategy

The uniqueness and magnitude of the customer value created by a firm's strategy are ultimately determined by the firm's management.

New entrants in an industry push prices downward and squeeze margins, resulting in reduced industry profitability.

According to Michael Porter, ________ is a generic strategy in which a company can offer lower prices than the competition to a narrow target market.

A narrow-focus strategy can be combined with differentiation-advantage strategies but not with cost-leadership strategies.

Governments are not considered determinants but can exert their influence on determinants.

According to Michael Porter, the buyers in an industry enjoy bargaining power when ________.

Chance events are occurrences that are beyond the control of firms, industries, and usually governments.

According to Michael Porter, motivation is one of the local things that distant rivals will find hard to match.

Suppliers enjoy bargaining power when their products or services carry low switching costs.

The effects of global competition have been highly disadvantageous for consumers around the world.

According to Porter, what are the different barriers that new entrants to an industry face?

Richard D'Aveni notes that in today's business environment, market stability is high due to long product life cycles.

Which of the following is scarcer in nature, requires sustained investment, and leads to sustainable international competitive advantage?

The reluctance of U.S. manufacturers to produce small cars for smaller unit profits despite the growing preference of U.S. customers for small cars is a classic example of ________.

A cost-focus strategy focuses on a narrow target segment.

The availability of substitute products places limits on the prices market leaders can charge in an industry.

________ are geographic concentrations of interconnected companies and institutions in a particular field, which constitute a critical mass.

According to Michael Porter, access-based positioning occurs when a company ________.

Cost leadership is a sustainable source of competitive advantage only if barriers exist that prevents competitors from achieving the same low costs.

A country's size and location are considered as its physical resources.

Introduction to Global Marketing

The Global Economic Environment

The Political, Legal, and Regulatory Environments of Global Marketing

The Global Cultural Environment

Global Customers

Global Marketing Information Systems and Research

Segmentation, Targeting, and Positioning

Global Entry and Expansion Strategies

Product Decisions

Pricing Decisions

Global Marketing Channels

Global Integrated Marketing Communications

Global Organization and Leadership: Managing the Global Marketing Effort

Global Corporate Social Responsibility and Environmental Sustainability

The Future of Global Marketing

Filters