Chapter 6 - LS

an increase in value creation must exceed the increase in costs

For a differentiation strategy to strengthen a company's strategic position and boost its competitive advantage, _______.

input

The auto manufacturer that has access to cheaper labor and raw materials than its rival will have a competitive advantage regarding lower cost of _________ factors

protection against entry due to economies of scale

The benefits of a cost-leadership strategy regarding the threat of entry in an industry includes

-Customer service -Complements -Product features

The most important value drivers that managers can use to create a competitive advantage are

Bundling of products and services consumed in tandem to create a value is an example of....

complements

Which of the following variables can managers primarily manipulate in order to answer the question, "How should we compete"

cost, value

Strategic Position

A firm's strategic profile based on value creation and cost is called its ____________

Strategic trade off

A(n) ____________ is a situation that requires choosing between a cost or value position

Customer service Product features

Two important factors that managers can adjust in an effort to improve the firm's strategic position are_____

Lowering costs increasing perceived consumer benefits

When persuing value innovation, managers must answer questions focused on which of the following?

Lower cost in the industry acceptable value

Which of the following are components of a cost-leadership strategy?

Differentiation cost-leadership

Which of the following are considered the two generic business-level strategies?

maintaining a domestic call center that is open 24 hours per day offering a no questions asked return policy

Which of the following are examples of ways that a large retailing firm can increase the perceived value of its offerings by focusing on customer service

-Which product factors to reduce below the industry standard -Which product factors to raise above the industry standard -Which product factors to eliminate -which new product factors to create

Which of the following are questions that managers must answer when pursuing value innovation? (Check all that apply.)