MGMT495 - Chapter 6 Quiz

In a successful ______ strategy, the trade-offs between differentiation and low cost are reconciled.

Blue ocean

A ______ primarily details the goal-directed actions managers take in their quest for competitive advantage when competing in a single product market.

Business-level strategy

While Fun Frames incus a cost of $12 for a pair of eyeglasses, Highwire, its competitor, manufactures a pair of glasses at $10. Both the companies are able to sell their glasses for a maximum of $30 per pair. Which of the following statements is true in this scenario?

Fun Frames and Highwire have achieved differentiation parity

According to the five forces model, which of the following is viewed as a major risk to a business pursuing a cost-leadership strategy?

Innovation that allows competitors to emerge with more economical replacements

Both Bison Autos and Sparrow Inc. incur a cost of $9,000 to manufacture a vehicle. However, the economic value created by Sparrow Inc. is more than that created by Bison Autos. What does this indicate?

Sparrow Inc. can charge a premium price on its automobiles