Question 1

According to Michael Porter, which of the following is a broad market strategy that can enable companies to offer lower prices to customers in the late, more competitive stages of the product life cycle?

Accepted Answer

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

Question 2

Richard D'Aveni uses the term ________ to describe a dynamic, competitive world in which no action or advantage can be sustained for long.

Accepted Answer

A)  hypercompetition 
B)  imperfect competition 
C)  interspecific competition 
D)  intraspecific competition

Question 3

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

Accepted Answer

A)  there are many suppliers to choose from 
B)  their products or services are not differentiated 
C)  their products or services carry low switching costs 
D)  their businesses are not threatened by alternative products

Question 4

Competitive advantage may be created indirectly by nations that have selective factor disadvantages.

Accepted Answer

A) True 
 B)False

Question 5

According to Porter, what are the generic strategies for creating competitive advantage?

Accepted Answer

The answer of According to Porter, what are the generic...

Question 6

According to Michael Porter, which of the following is true of differentiation as a generic strategy?

Accepted Answer

A)  It is an effective strategy for obtaining above-average financial returns because unique products often command premium price. 
B)  It offers an opportunity for small, specialized companies to grow while retaining their narrow focus on highly differentiated products. 
C)  It requires companies to construct the most efficient facilities in terms of scale or technology and obtain the largest share of market. 
D)  It has become increasingly popular in recent years as a result of the popularization of the experience curve concept.

Question 7

________ refers to the decline in per unit product costs as the absolute volume of production per period increases.

Accepted Answer

A)  Economies of scale 
B)  Economies of scope 
C)  Diseconomies of scale 
D)  Diseconomies of scope

Question 8

Which of the following is true of the demand conditions described in Porter's diamond model?

Accepted Answer

A)  Early market saturation puts extreme pressure on a company to expand, which leads to inappropriate establishment in foreign countries that destabilize the company. 
B)  Early home demand fails to anticipate international demand and hence gives foreign rivals the advantage of getting established in an industry sooner than local firms. 
C)  Slow home-market growth is an incentive for companies to invest in and adopt new technologies, and to build large, efficient facilities. 
D)  The size and pattern of growth of home demand are important only if the composition of the home demand is sophisticated and anticipates foreign demand.

Question 9

According to Porter, segmentation is the generic strategy used in access-based positioning.

Accepted Answer

A) True 
 B)False

Question 10

A focused educational system is an example of a generalized factor.

Accepted Answer

A) True 
 B)False

Question 11

When a firm's product delivers unique value because of an actual or perceived uniqueness in a broad market, it is said to have a cost-leadership advantage.

Accepted Answer

A) True 
 B)False

Question 12

The thesis that a firm's home-base country is the main source of core competencies and innovation was challenged by Michael Porter.

Accepted Answer

A) True 
 B)False

Question 13

According to Hamel and Prahalad, which of the following approaches is being utilized by a company that gains access to the know-how developed by other companies through licensing agreements, joint ventures, or partnerships?

Accepted Answer

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

Question 14

Firms paying high capital costs are frequently unable to stay in a market in which the competition comes from a nation with low capital costs.

Accepted Answer

A) True 
 B)False

Exam 9: Competitive Analysis and Strategy

According to Michael Porter, which of the following is a broad market strategy that can enable companies to offer lower prices to customers in the late, more competitive stages of the product life cycle?

Richard D'Aveni uses the term ________ to describe a dynamic, competitive world in which no action or advantage can be sustained for long.

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

Competitive advantage may be created indirectly by nations that have selective factor disadvantages.

According to Porter, what are the generic strategies for creating competitive advantage?

According to Michael Porter, which of the following is true of differentiation as a generic strategy?

________ refers to the decline in per unit product costs as the absolute volume of production per period increases.

Which of the following is true of the demand conditions described in Porter's diamond model?

According to Porter, segmentation is the generic strategy used in access-based positioning.

A focused educational system is an example of a generalized factor.

When a firm's product delivers unique value because of an actual or perceived uniqueness in a broad market, it is said to have a cost-leadership advantage.

The thesis that a firm's home-base country is the main source of core competencies and innovation was challenged by Michael Porter.

According to Hamel and Prahalad, which of the following approaches is being utilized by a company that gains access to the know-how developed by other companies through licensing agreements, joint ventures, or partnerships?

Firms paying high capital costs are frequently unable to stay in a market in which the competition comes from a nation with low capital costs.