ORG B E1

Companies that have value but don't possess the other VRIO attributes experience ________________.

comparitave parity

Build-a-Bear's approach to differentiation consists of:

mass customization

Fragmented industries tend to have __________ competitors and __________ intense rivalry.

more, more

What can best be defined as the reason a firm wins with customers or the value proposition it offers to customers, such as low cost advantage or differentiation advantage.

unique value

The industry and geographic area that a company competes in is referred to as its what?

market

Steve Jobs possessed a(n) ________________ to be able to spot great design in a product.

tacit knowledge

How should a company best identify the industry they compete in, and therefore their competitors?

By identifying the job that their products do for customers

What can best be defined as when an organization generates higher profits compared to its rivals?

Competitive Advantage

Why is Oswald the Lucky Rabbit not a well-known Disney character today?

Disney did not hold the copy rights to the Oswald character and someone else used the character

What are the two generic strategies for offering unique value to customers?

Differentiation advantage and cost advantage

Industries with relatively standardized products generally experience less competition and rivalry. T or F

False

What company was used in the text as an example of doing a "better job" with the extraordinary customer service they provide?

Nordstrom

What is the main purpose of a strategic management process

Specifying a high-level plan that an organization will employ to achieve competitive advantage.

As a company experiences economies of scale ___________________.

The cost per unit decreases with increases in volume

The net promoter score is a great way to measure customer loyalty. T or F

True

The tool called the Mapping the Consumption Chain is one way companies find ways to differentiate their products. T or F

True

Increased rivalry tends to squeeze profit margins of most firms in an industry. T or F

True

What VRIO attributes are necessary to create a sustained competitive advantage?

all four

If a company increases volume beyond the minimum efficient scale, the company will experience _____________________

both dis-economies of scale and an increase in cost per unit of production.

Companies adopting a cost advantage strategy should focus on cost to the exclusion of everything else. T or F

false

When Facebook was launched, it was exclusive to only ______________.

harvard students

If there are few sellers, but lots of buyers, supplier bargaining power tends to be ______________

high

When a buyer has a credible threat to backward integrate (making the product themselves), the buyer bargaining power _____________ over suppliers.

increases

When buyer price sensitivity is high, buyers tend to exert pressure on suppliers to keep prices _____________.

low

n our economic system, people show that a product or service holds value by ___________

paying money for it

The Learning Curve is the idea that ___________

practice makes perfect

The Toyota Production system is primarily (choose the best answer) an example of achieving cost advantage through which of the following ways?

proprietary knowledge

How do high levels of unused production capacity affect rivalry?

rivalry increases

An industry is more attractive the lower number of substitutes there are. T or F

true

In most industries there is a strong correlation between market share and profitability. T or F

true

Competitive advantages arise when resources or capabilities possess which two of the four VRIO attributes?

value and rarity

The process it takes to transform raw inputs into finished outputs is called the ________________.

value chain