CH. 6

petra's programming competes on cost with wonderweb in the web design industry. both firms operate on a 90 percent learning curve, and neither firm is capable of increasing its cumulative output any further. how might petra's programming achieve a cost leadership position while maintaining customer satisfaction?

by incorporating new programming techniques to take advantage of experience curve effects.

which of the following is primarily a value driver?

complements

when pursuing a blue ocean strategy, a firm in a crowded marketplace attempts to out-compete rivals on both cost and product features with the goal of gaining market share at the expense of other competitors in the same industry.

false

unicorn toys faces stiff competition from playtime inc., a rival firm with which unicorn toys has achieved differentiation parity. both firms have invested in state-of-the art production facilities and have similar learning curves of 85 percent. assuming neither firm can reduce the cost of its input factors, how can unicorn toys achieve competitive advantage as a cost leader?

have a cumulative output that is greater than playtime inc.'s.

a cost leader is the firm most likely to survive a price war.

true