Deck 19: Note : Generic Strategies - Product-Market Growth Strategies

Question 1

All of the following are methods used with a market penetration strategy EXCEPT ________.

A) cross selling
B) converting nonbuyers
C) introducing new applications
D) converting competitors' customers

Answer 1

A

Question 2

Which of the following is NOT one of the adjacency paths described by Chris Zook?

A) new businesses
B) new geographies
C) new profit pools
D) new customer segments

Answer 2

C

Question 3

A company implementing a diversification strategy through forward integration would most likely acquire a supplier.

Answer 3

False

Question 4

Which growth strategy has the lowest probability of success?

A) diversification
B) market development
C) product development
D) market penetration

Question 5

A firm would most likely add new product features to generate sales during the ________ stage of the product life cycle.

A) introduction
B) maturity
C) decline
D) growth

Question 6

Which growth strategy has the highest success rate and requires the lowest amount of resources?

A) diversification
B) market penetration
C) product development
D) market development

Question 7

A firm that implements a growth strategy of market development will most likely try to ________.

A) cross sell products
B) build brand awareness
C) convert lost customers
D) modify product performance

Question 8

According to Chris Zook,a firm can reduce the risks associated with any growth strategy by ________.

A) conducting extensive market research
B) eliminating value-chain activities
C) focusing only on B2B customers
D) building from core strengths

Question 9

Research indicates that most firms are more successful at winning new customers than at winning back lost customers.

Question 10

A firm that implements cross selling as a product development method is most likely focusing on sales to ________.

A) nonbuyers
B) lost customers
C) existing customers
D) dissatisfied customers

Question 11

Market penetration,product development,market development,and diversification are the four growth strategies defined by the ________.

A) Ansoff matrix
B) Markov model
C) Reilly model
D) BCG matrix

Question 12

What is a diversification strategy? How can a firm reduce the risks associated with diversification?

Question 13

A strategy of product development requires more resources than a strategy of market penetration.

Question 14

Bisquick,a General Mills brand,includes numerous recipes on the back of each box of baking mix.General Mills is most likely using a strategy of ________.

A) product development
B) market development
C) market penetration
D) diversification