strat 3700

Which of the following pieces of information is most relevant for assessing whether personal pair passes the "value" test? Will CCTC be able to partner with Levi's competitors? How many and by much would customers value custom-fit jeans? Would Levi's be the first entrant in the custom-fit jeans industry?

How many and by much would customers value custom-fit jeans?

Fill in the blanks using "intangibles" or "tools". ____ is more likely to be rare than ____ . ____ is more likely to be inimitable than ____.

Intangibles Tools Intangibles Tools

Which of the following are most likely to be a VRIO resource to AirAsiaX? Product choices Its relationship with AirAsia Use of an Airbus-only fleet Its in-flight sales structure

Its relationship with AirAsia

Processes, routines, teams, culture, and ways of working are examples of which source of low costs? Operations Intangibles Learning curves Economies of scale Differential Access to Low Cost Inputs

Operations Intangibles

Which of the following items is most likely to result in a firm's inimitable differentiation? Social Complexity Differential access to low costs Product level differentiation

Social Complexity Inimitable differentiation usually depends on history or social complexity.

Which of the following is the most likely reason that competitors will not copy a given company's economies of scale: There is not enough room in the market for multiple efficient scale firms. Competitors do not understand the source of the economies of scale. Competitors do not have the differential access to low costs

There is not enough room in the market for multiple efficient scale firms.

Reputation Differentiation

This is typically achieved through a blend of targeted advertising, superior offering quality, and/or performance. The focus of reputation-based differentiation is on communicating the value proposition in a unique and memorable way.

economies of scale

cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs.

marketing differentiation

crafting unique products and services to attract and retain customers.

Firm 1 and Firm 2 are rivals selling similar products. Firm 1 decides to differentiate its product. Would you expect the threat of rivalry to firm 2 to: Tend to increase Tend to decrease

decrease A firm differentiating is good news for its competitors. If you lean towards a certain type of customer you leave some of the other types of customers to your competitors.

Differentiation based on links

differentiation is based on explicit linkages between one firm's products and the products or services of other firms.

Levi's strategy is largely a cost leadership strategy. True False

false

Lowering your costs by implementing a cost reduction process that is also being implemented by your competitors is likely to lead to sustained competitive advantage. True False

false

An organization with cross functional links in their structure is better suited for a low cost strategy than a differentiation strategy. True False

false A firm with cross functional links is more suited to differentiation rather than low costs.

DTC Model

is when a brand or manufacturer sells its own products to its end customers.

customization differentiation

making products to meet a particular customer's needs or wants

Differentiation can result in which of the following? Reduced Rivalry Cost Leadership Diseconomies of Scale

reduced rivalry Differentiation results in less battling over customers. In the Hotelling's Beach example, the firms did not even fight over the customers in the middle.

Differential access to low cost inputs is usually hard to imitate. True False

true

The value of differentiation can be minimized if costs are too high. True False

true

Regulation by the Malaysian government represents both an opportunity and a threat to AirAisaX. True False

true The Malaysian government creates complications for AirAsiaX due to its protectionist stance with regards to Malaysian Airlines. However, it also creates barriers to entry, which minimizes the threat of new entrants. AirAsiaX's relationship with the Malaysian government can be a source of cost advantage that is relatively inimitable.

Which of the following dynamics represents a potentially socially complex relationship that may support differentiation? All of the options Relationships between the customer and firm Relationships within the firm Relationships between the firm and suppliers All of the options EXCEPT relationships within the firm

All of the options Social complex relationships might be between customer and firm, within the firm, or between the firm and suppliers/channels.