Strategic Management (Quiz 3) Ch. 6
The most important cost drivers that strategic leaders can manipulate to keep their cost low are?
Cost of input factors, Economies of scale, Learning-curve effects, & Experience-curve effects
What are the salient value drivers that strategic leaders have at their disposal?
Product features, Customer service, & Complements
To formulate an effective business strategy, managers need to keep in mind that competitive advantage is determined jointly by ____ and ____ effects.
industry and firm effects
The focused versions of the two business strategies- focused cost-leadership strategy and focused differentiation strategy- are _________?
are essentially the same as the broad generic strategies except that the competitive scope is narrower.
What are strategic trade-offs?
choices between a cost or value position
What is economies of scope?
describes the savings that come from producing two outputs at less cost than producing each output individually, even though using the same resources and technology.
What is business-level strategy?
details the goal-directed actions managers take in their quest for competitive advantage when competing in a single product market.
What are the two fundamentally different generic business strategies?
differentiation and cost leadership
To achieve a desired strategic position, managers must make _______?
strategic trade-offs
A differentiation strategy seeks to ________?
to create higher value for customers than the value that competitors create, by delivering products or services with unique features while keeping costs at the same or similar levels, allowing the firm to charge higher prices to its customers.
A cost-leadership strategy seeks to ________?
to create the same or similar value for customers by delivering products or services at a lower cost than competitors, enabling the firm to offer lower prices to its customer.
What is the scope of competition?
whether to pursue a specific, narrow part of the market or go after the broader market.