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