Mgt 6
in a focused cost leadership strategy, a firm
delivers low-cost products and services to a specific, narrow part of the market.
the concept of a blank attempts to capture both learning effects and process improvements at firms
experience curve
which of the following best describes the Strategic trade off?
attention between value creation and the pressure to keep costs in check
how is differentiation parody different from cost parody?
differentiation parody deals with Innovation not value
which of the following drivers simultaneously increases value while lowering costs
Innovation
all of the following are questions that managers should ask before crafting a business level strategy except
why do we want to satisfy them?
a value curve indicates a lack of Effectiveness in a firm's strategic profile when it
zig zags
Acer where Incorporated manufacturers external hard disks for $32 per unit, and the maximum price customers are willing to pay is $47 per unit. David Driver incorporated as a competitor of Acer where Incorporated that produces external hard disks with $37 per unit, and customers are willing to pay a maximum of $50 per unit what does this imply?
Acer where creates more a greater economic value than data driver
all of the following are generic business level strategies except
Focus marketing
evaluate the following statement strategic leader should always try to pursue a Blue Ocean strategy because it is the most complex, coveted, and most desirable strategy that exist
I disagree firm should only pursue this strategy if they are able to reconcile the trade-offs of each generic strategy
how did Marriott use economies of scope to achieve greater economic value than its competitors
Marriott lowered its cost structure by sharing its production assets over several type of hotels which increase the diversity of its Hotel line and dust differentiated its appeal
one of the risks of pursuing a Blue Ocean strategy is that a firm can find itself
Stuck in the Middle
when a Blue Ocean strategy goes bad, a firm has neither a clear differentiation Nora clear cost leadership profile the situation is referred to as
Stuck in the Middle
tablet Corporation is a consumer electronics company known for its affordable mobile devices that follows a cost leadership strategy. In this scenario tablet Corporation should ideally compare its strategic position with
a consumer electronics company popular among price-conscious consumers
Pete's bikes enjoy the competitive Advantage as a cost leader because high demand for its products has allowed it to operate at the minimum efficient scale. Which of the following scenarios would be most concerning to the managers of petes bikes?
a major winter storm shuts down Pete's production for several days
due to its large sales volume and low cost structure, Bunny's low-cost enjoys a cost leadership position. Which of the following scenarios might threaten bunnies competitive advantage?
a new competitor is perceived to provide similar value but an addition offers Innovative self checkout the bunnies doesn't offer
a blank primarily details the goal directed actions managers take in their quest for competitive Advantage when competing in a single product Market
business level strategy
Lewis's second hand store offers slightly lower quality merchandise than competitors at a much lower price. What strategy is Lewis's second hand store using?
cost leadership
Penny's closet Incorporated is a apparel company that caters to highly price-conscious customers. Through it symbol apparel designs acceptable quality levels and minimal customer service the company has been able to sell its merchandise at the lowest prices in the industry. Which of the following generic business strategies is Benny's closet applying?
cost leadership
great food is a chain of fast casual restaurants that sells its menu items at higher prices than its competitors the restaurant has a large customer base due to its wide product portfolio and Superior customer service. Which of the following generic strategies has great food adopted in this scenario?
differentiation
a differentiator is least likely to be threatened by increases in input prices due to powerful suppliers when the
differentiator is able to create a significant difference between perceived value and current market prices
a differentiation strategy works best when a
firm has intangible resources, is able to pass on increases in supplier cost to the customer, and its differentiation appeal creates customer loyalty.
power juice is the owner of a firm that produces sports drinks. Since there are a number of firms in the industry competing on cost, power juice has decided to pursue a differentiation strategy. In this case she should
focus on adding unique features to our product that customers will value
which of the following best explains why a Blue Ocean strategy is difficult to implement
it requires the reconciliation fundamentally different strategic positions, differentiation and low cost
Trader Joe's differentiates itself from competitors by offering top Quality Foods obtained through sustainable agriculture. This business strategy implies that Trader Joe's focuses on
increasing the perceived value for created for customers, which allows it to charge a premium price
we cut Corners Lawn Service initially spent 9 man hours to assemble a lawn mower. But as the production doubled, the number is spent on assembling a mower Reduce by 20% this increase in productivity reduce the company's cost per unit what is this phenomenon known as
learning curve effect
which of the following is an accurate statement about learning effects?
learning effects occur over time as output accumulates
finger lickin BBQ is a chain of casual restaurants that promises affordable barbecue using top-quality local ingredients. However, the company has struggled to achieve a competitive Advantage because of its high overhead costs. Which of the following scenarios is most likely to result in a competitive advantage?
marketing itself as a high-end restaurant in competing with more refined restaurants in the area
Jonathan is the owner of a landscaping company that caters to a very wealthy clientele. His company has struggled to differentiate itself from other high-end landscapers in the area, but because he has hired several expensive but highly qualified team members, Jonathan is unable to shift you a cost leadership strategy. Which strategy is most likely to achieve a competitive advantage?
narrow the scope of competition and focus on unique features such as the use of organic materials
which of the following sources of differential appeal is least effective in helping a firm sustain its advantage?
observable product
the primary goal of a firm pursuing a Blue Ocean strategy should be to
offer a differentiated product or service at a low cost
Connell Incorporated has been successful at differentiating itself from competitors by charging a premium price for its digital cameras based on Superior image quality and advanced technology. In this scenario, which is the following is the key value driver?
product features
when a firm makes choices between a cost or value position to achieve competitive Advantage, it is primarily involved in
strategic trade-offs
in order to achieve a competitive Advantage, the Heavenly hotels, a chain of luxury beach resorts, wants to increase its market share. Which of the following strategies is most likely to do so?
take advantage of economies of scale and scope by opening a chain of lower-priced economy hotels that Leverage The Heavenly hotels brand image
when examining all generic strategies, which of the following below is inherently Superior in every industry?
there is no single Superior business level strategy
which of the following provides an example of a firm in a red ocean?
cool apparel offered clothing at a low price but failed to differentiate its product as being exclusive.
blank is best described as decreases in cost per unit as output increases
economies of scale
food tiger Incorporated is a large chain of hypermarkets. It has cost benefits due to its extensive operation. The company's marketing has sales logistics administrative and other such related costs get divided between a larger number of product units stocked and its stores this makes it difficult for smaller retail stores and supermarkets to compete against food Tigers low prices. Us food Tiger has a competitive Advantage due to its
economies of scale
although JetBlue used a Blue Ocean strategy to achieve an initial competitive Advantage it failed to maintain this Advantage which of the following provides the best reason for this development
it failed to refine its strategic position over time
how is it cost leader protected from threats from powerful suppliers?
it is more able to absorb price increases through accepting lower profit margins