STRAT 3700- Midterm 2

The following excerpt alludes to which source of low costs? "To reduce costs Southwest filled its planes with more seats, made sure each flight was packed and flew its aircraft more often than full-service airlines."

Economies of scale

T/F An organization with cross functional links in their structure is better suited for a low cost strategy than a differentiation strategy

False

T/F 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.

False

Which of the following are most likely to be a VRIO resource to AirAsiaX?

Its relationship with AirAsia

AirAsiaX's ability to maintain its low costs is most dependent on which of the following?

Price Transparency

Differentiation can result in which of the following?

Reduced Rivalry

Which of the following items is most likely to result in a firm's inimitable differentiation?

Social Complexity

______ is more likely to be inimitable than ______.

Software Hardware

______ is more likely to be rare than ______.

Software Hardware

Processes, routines, teams, culture, and ways of working are examples of which source of low costs?

Technology "Software"

The Ryanair article mentions Ryanair using fees to "manage passenger behavior more than other airlines". This is an example of which source of low costs?

Technology "Software"

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 decrease

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.

T/F Differential access to low cost inputs is usually hard to imitate.

True

T/F Regulation by the Malaysian government represents both an opportunity and a threat to AirAsiaX

True

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

All of the above