Exam 1 BCOR 460 (winter)

Why do many firms fail to successfully implement a blue ocean strategy?

Because they end up being stuck in the middle, unable to increase value and lower costs at the same time

A _____ outlines the steps a manager will take to achieve competitive advantage in a single product market

Business-level strategy

Which of the following are business strategies JetBlue pursued in order to gain a competitive advantage?

Differentiation and cost-leadership

What is one of the benefits of pursuing a differentiation strategy when it comes to the power of suppliers?

Differentiation provides protection against an increase in input prices

Formulating a business strategy is a relatively easy task because only a few strategic options are available.

False

Business-level strategy addresses which overarching question?

How should we compete?

The most significant challenge JetBlue faced in implementing its business strategy was?

Justifying its higher-than-average prices to budget-conscious consumers

Implementing a blue ocean strategy requires making competition irrelevant and creating a new market space, otherwise known as ____?

Value innovation

Hey, struggling retailer seeking to implement a blue ocean strategy is likely to experience difficulty with ____

cutting costs and increasing value at the same time

Which of the following competitive forces can result in the erosion of margins for both differentiation, and Cost leader ship business strategies?

Power of buyers, power of suppliers, threat of entry

Products in the affordable business, casual clothing, market have largely become commoditized, and most retailers have begun to compete mainly on price rather than product features. In this environment, it is impossible for one retailer to gain market share without another losing it. This is an example of a ___ ocean.

Red

Economies of ____ are the savings that come from producing two or more different outputs at a lower cost than producing each output individually

Scope

Which of the following best defines economies of scope?

They are the savings that come from producing two or more outputs at less cost than producing each output individually

What my strategic liters keep in mind if they are going to achieve successful strategic positioning?

To achieve strategic positioning, firms must make important trade-offs

In terms of business strategy, blue oceans represent which of the following?

Untapped market space Increased demand