Business Strategy Chapter 6

Which of the following are pricing options offered by a blue ocean strategy?

-The firm can charge a higher price then the cost leader -The firms can charge a lower price then differentiation.

Larger output allows firms to invest in more specialized system such as_______.

-manufacturing robots -enterprise resource planning software

In terms of competitive positioning, erosion of margins is a risk for which of the following competitive forces?

-power of suppliers -threat of entry -power of buyeres

When pursuing a differentiation Strategy, a firm can achieve a competitive advantage by ______.

Ensuring that its economic value exceeds that of its competitors.

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

an increase in value creation much exceed the increase in costs.

Furniture retailer IKEA has used the value innovation Framework of________ to successfully implement a blue ocean strategy.

eliminate-reduce-raise-create

An auto manufacturer that has to cheaper labor and raw materials then its rivals will have a CA regarding lower cost of______ factors

input

A ________ is a situation that requires choosing between a cost or value position.

strategic trade-off