Question 1

Explain the reasons behind the failure of the visionary strategy of Volkswagen from becoming the number one automaker in the world.

Accepted Answer

The answer of Explain the reasons behind the failure of...

Question 2

It is the number of domestic rivals,intensity of the competition,as well as the quality of the competitors that make the difference.

Accepted Answer

A) True 
 B)False

Question 3

Intel's focus on designing complex,expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices.In the strategic intent model of competitive advantage,this is an example of "loose bricks."

Accepted Answer

A) True 
 B)False

Question 4

The strong rivalry in the U.S.market between Dell,Gateway,Hewlett-Packard,Apple,and other computer companies has helped make the United States a world leader in personal computers.

Accepted Answer

A) True 
 B)False

Question 5

Canon introduced the first full-color copiers and the first copiers with "connectivity"-the ability to print images from such sources as video camcorders and computers.This Canon example shows how an innovative marketing strategy-with fresh approaches to product,pricing,distribution,and selling-leads to overall competitive advantage in the marketplace.This strategy can be classified under:

Accepted Answer

A) collaborating. 
B) loose bricks. 
C) changing the rules. 
D) layers of advantage. 
E) differentiation.

Question 6

Volkswagen Auto Group of America markets both the VW and Audi nameplates in the United States;in 2014,unit sales for the group totaled nearly 550,000 vehicles.However,the VW brand has been hampered by perceptions of hit-and-miss quality.

Accepted Answer

A) True 
 B)False

Question 7

When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage,it might be said to be:

Accepted Answer

A) searching for loose bricks. 
B) changing the rules of engagement. 
C) collaborating. 
D) building layers of advantage. 
E) innovating.

Question 8

The rivalry between Dell,Hewlett-Packard,Gateway,Compaq,and Apple forces all the players to undertake all of the following except:

Accepted Answer

A) develop new products. 
B) improve existing products. 
C) lower costs and prices. 
D) develop new technologies. 
E) change the rules of engagement.

Question 9

Several factors can create intense rivalry among firms.These factors include all of the following factors except:

Accepted Answer

A) firms focus on market share at the expense of others. 
B) firms feel pressure due to fixed costs and produce at full capacity. 
C) lack of differentiation in products and services. 
D) upward pressure on prices and profitability. 
E) absence of switching costs for customers.

Question 10

Product differentiation and brand loyalty "raise the bar" for would-be industry entrants who would be required to make minimal investments in research or advertising.

Accepted Answer

A) True 
 B)False

Question 11

Describe how Japanese companies added layers of advantage realizing that the cost advantage may be temporary.

Accepted Answer

The answer of Describe how Japanese companies added layers of...

Question 12

Which of the following generic strategies best captures the way Harley-Davidson has achieved competitive advantage in the global motorcycle industry?

Accepted Answer

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

Question 13

Maytag has been called "the Rolls-Royce of washers and dryers," and it can be said that it has achieved a competitive advantage by means of differentiation.

Accepted Answer

A) True 
 B)False

Question 14

Del Vecchio,the Italian entrepreneur's business principles include all but one of the following:

Accepted Answer

A) "Made in Italy" is important. 
B) cutting costs to keep production at home. 
C) investing in automation. 
D) hiring qualified personnel. 
E) investing in robots,not workers.

Question 15

Michael Porter's generic strategy framework is derived from the basic types of competitive advantage and the scope of the target market served.

Accepted Answer

A) True 
 B)False

Question 16

Established firms do not enjoy cost advantages independent of scale economies that present a barrier to entry.

Accepted Answer

A) True 
 B)False

Question 17

In addition to the five forces model of industry competition,Michael Porter has developed a framework of so-called generic business strategies.Explain these generic strategies,describing their aims and application.

Accepted Answer

The answer of In addition to the five forces model...

Question 18

Many firms have gained competitive advantage by disadvantaging rivals through:

Accepted Answer

A) engagement. 
B) collaboration. 
C) competitive innovation. 
D) focused differentiation. 
E) consumer differentiation.

Question 19

The key to maintaining competitive advantage,according to W.Edwards Deming is:

Accepted Answer

A) being committed to constant improvement. 
B) being first to market with all products. 
C) outsourcing key components. 
D) challenging all market leaders. 
E) stressing low-price advantage in all areas.

Question 20

A firm that has the skills to be a "first mover" and arrive first in the market has achieved a know-how advantage.

Accepted Answer

A) True 
 B)False

Exam 16: Strategic Elements of Competitive Advantage

Explain the reasons behind the failure of the visionary strategy of Volkswagen from becoming the number one automaker in the world.

It is the number of domestic rivals,intensity of the competition,as well as the quality of the competitors that make the difference.

Intel's focus on designing complex,expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices.In the strategic intent model of competitive advantage,this is an example of "loose bricks."

The strong rivalry in the U.S.market between Dell,Gateway,Hewlett-Packard,Apple,and other computer companies has helped make the United States a world leader in personal computers.

Volkswagen Auto Group of America markets both the VW and Audi nameplates in the United States;in 2014,unit sales for the group totaled nearly 550,000 vehicles.However,the VW brand has been hampered by perceptions of hit-and-miss quality.

When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage,it might be said to be:

The rivalry between Dell,Hewlett-Packard,Gateway,Compaq,and Apple forces all the players to undertake all of the following except:

Several factors can create intense rivalry among firms.These factors include all of the following factors except:

Product differentiation and brand loyalty "raise the bar" for would-be industry entrants who would be required to make minimal investments in research or advertising.

Describe how Japanese companies added layers of advantage realizing that the cost advantage may be temporary.

Which of the following generic strategies best captures the way Harley-Davidson has achieved competitive advantage in the global motorcycle industry?

Maytag has been called "the Rolls-Royce of washers and dryers," and it can be said that it has achieved a competitive advantage by means of differentiation.

Del Vecchio,the Italian entrepreneur's business principles include all but one of the following:

Michael Porter's generic strategy framework is derived from the basic types of competitive advantage and the scope of the target market served.

Established firms do not enjoy cost advantages independent of scale economies that present a barrier to entry.

In addition to the five forces model of industry competition,Michael Porter has developed a framework of so-called generic business strategies.Explain these generic strategies,describing their aims and application.

Many firms have gained competitive advantage by disadvantaging rivals through:

The key to maintaining competitive advantage,according to W.Edwards Deming is:

A firm that has the skills to be a "first mover" and arrive first in the market has achieved a know-how advantage.