Quiz 5
A focused low-cost strategy aims at
securing a competitive advantage BY SERVING BUYERS in the target market niche at lower cost than those of rival competitors
Cost drivers ___________
are factors having a strong effect on the cost of a company's value chain activities and cost structure.
Avenues for performing value chain activities at a lower cost than rivals include all of the following except
avoiding outsourcing and vertical integration
Which strategy tends to work best when buyer needs and used of the product are diverse?
A differentiation strategy
Which of the following strategic approaches becomes most appealing when a market is not important to industry leaders?
A focused strategy
Which strategic approach tends to work best when price competition among rival sellers is vigorous, buyers are large, and there are few ways to achieve product differentiation?
A low-cost provider strategy
Which of the following choices represent the five generic types of competitive strategy?
A low-cost provider strategy, A FOCUSED LOW-LOW COST STRATEGY, a focused differentiation strategy, a broad differentiation strategy, and a best-cost provider strategy
When choosing a differentiation strategy which of the following actions can a company select, to deliver superior value to the customers?
All of these are correct
What are the two ways a company can translate its low-cost advantage over rivals into attractive profit performance?
EITHER USING ITS LOW-COST EDGE to under price competitors and attract price-sensitive buyers in large enough numbers to increase total profits or refraining from price cutting and using the low-cost advantage to earn a bigger profit marge on each unit sold
A company's competitive strategy is unlikely to succeed unless _______
IT IS PREDICATED on leveraging a competitively valuable collection of resources and capabilities that match the strategy.
Best-cost provider strategies work best when _________
PRODUCT DIFFERENTIATION IS THE NORM and there is an attractively large number of value-conscious buyers
A best-cost provider's resources and capabilities must allow ________
THE INCORPORATION of upscale attributes into its product offering at a lower cost than rivals
A differentiation strategy works best in which of the following market circumstances?
WHEN THERE ARE MANY WAYS to differentiate the product or service that have value to buyers
The two factors that most distinguish one competitive strategy from another boil down to
WHETHER A COMPANY' MARKET TARGET is broad or narrow and (2) whether the company is pursuing competitive advantage based on differentiation or costs
Successful differentiation allows a firm to
command a premium price for its product, and/or increase unit sales, and/or gain buyer loyalty to its brand
Activities that managers can pursue to enhance differentiation through the systematic management of uniqueness drivers include the following except:
finding ways to cut labor cots and trim the workforce as much as possible
The marketing emphasis of a company pursuing a focused differentiation strategy usually is to _________
highlight carefully designed products or services appealing to the unique preferences and needs of a narrow, well-defined group of buyers
A company achieves low-cost leadership when ____________
it becomes the industry's low-cost provider rather than just being one of perhaps several competitors with comparatively low costs
Successful use of a focused differentiation strategy depends on
the EXISTENCE of a buyer segment that is looking for special product attributes or seller capabilities
The strategic target of a best-cost provider is ______
the value-conscious buyer