Comprehension Mini-Quiz: Business Level (Generic) Strategies

What are Porter's generic business level strategies?

Cost Leadership Differentiation Focus

Which of the following statements is true of a strategic position?

Choosing a strategic position requires making important trade-offs between value and cost positions

Which business level strategy does the following example best fit? Walmart appeals to a wide variety of people through an emphasis on cost drivers - people are drawn to Walmart for cheap prices with everything under one roof.

Cost Leadership

Which of the following are limitations of business level strategies?

The arrangement of these can be quite rigid Fails to acknowledge difference between low cost strategies and best cost strategies Questionable applicability of this model with the advent of e-business Ability of businesses to be able to successfully reconcile differentiation and cost without being stuck in the middle

Which business level strategy does the following example best fit? Casper Mattress has been able to successfully reconcile both low cost through D2C while also creating value through product design and branding.

blue ocean/integrated strategy

Which business level strategy does the following example best fit? Starbucks appeals to a wide variety of people on the basis of value - people are prepared to pay more for the cafe' experience and customized offerings.

differentiation

Which business level strategy does the following example best fit? Aldi appeals to a narrow segment (e.g. people who are prepared to go to two grocery stores and are ok with a limited selection) and the basis of this appeal is predicated on lower prices.

focus cost leadership

Which business level strategy does the following example best fit? Lululemon's initial appeal was to a more affluent female yoga demographic with the basis of this appeal emphasizing the unique fabric and design of its yoga pants.

focus differentiation

Which business level strategy does the following example best fit? The Aston Martin One-77 car retails at almost $2 million dollars - it appeals to a very narrow niche and the basis of its appeal is uniqueness.

focus differentiation

Which of the following is more of a value driver than a cost driver?

superior customer service