Question 1

Two-sided or platform markets are an emerging trend according to the textbook authors.Choose an example of an existing platform market and explain how this firm positions itself to become the dominant player linking suppliers and customers.

Accepted Answer

Successful platform firms create a busin...

Question 2

An example of a firm applying the overall cost leadership generic strategy in a value-chain activity would be to automate the production assembly line to reduce scrappage from quality errors.

Accepted Answer

A) True 
 B)False

Question 3

The growth stage of the industry life cycle is characterized by

Accepted Answer

A)   in-kind competition (from the same type of product) .
B)   premium pricing.
C)   a growing trend to compete on the basis of price.
D)   retaliation by competitors whose customers are stolen.E) B) and C)
F) A) and C)

Question 4

What are the pitfalls of the overall cost leadership strategy? Provide an example for each pitfall and explain why it is a pitfall.

Accepted Answer

Potential pitfalls of overall cost leade...

Question 5

An important advantage of first movers in a market is that they may establish brand recognition that may later serve as an important switching cost.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following reasons is not a reason that Atlas Door could lose competitive advantage?

Accepted Answer

A)   Its technologies are non-proprietary.
B)   A rival easily could hire away its talented employees.
C)   A new rival with a strong resource base could undercut its prices.
D)   It has strong power over its distributors.E) A) and D)
F) B) and D)

Question 7

A firm can achieve differentiation through all the following means except

Accepted Answer

A)   improving brand image.
B)   offering lower prices to frequent customers.
C)   better customer service.
D)   adding additional product features.E) B) and D)
F) A) and C)

Question 8

What is a focus strategy? Provide an example where this has been implemented successfully.

Accepted Answer

A focus strategy is based on the choice ...

Question 9

Which of the following is false regarding how a differentiation strategy can help a firm to improve its competitive position relative to the Porter five-forces model?

Accepted Answer

A)   Firms will enjoy high customer loyalty.
B)   By increasing firm margins, it avoids the need for a low-cost position.
C)   It reduces buyer power because buyers lack comparable alternatives.
D)   Supplier power is increased, because suppliers will be able to charge higher prices for their inputs.E) None of the above
F) B) and D)

Question 10

Primark,a fashion retailer,has found a way to keep its cost structure lower than its rivals by leveraging streamlined logistics,a low marketing budget,and negotiating bargain prices from its suppliers.They are using a(n) ________ strategy.

Accepted Answer

A)   differentiation
B)   overall cost leadership
C)   focus
D)   broad differentiationE) None of the above
F) A) and C)

Question 11

High product differentiation is generally accompanied by

Accepted Answer

A)   higher market share.
B)   higher profit margins and lower costs.
C)   significant economies of scale.
D)   decreased emphasis on competition based on price.E) B) and D)
F) A) and C)

Question 12

Hardware chains such as Ace and True Value are losing market share to rivals such as Lowe's and Home Depot in spite of them using a focus strategy.Why?

Accepted Answer

A)   Achieving parity on costs for specialty retailers is difficult.
B)   They have too broad a product line.
C)   They have equivalent purchasing power as the national chains.
D)   Their costs are the same as those of the national chains.E) A) and B)
F) B) and C)

Question 13

The most likely time to pursue a harvest strategy is in a situation of

Accepted Answer

A)   high growth.
B)   strong competitive advantage.
C)   mergers and acquisitions.
D)   decline.E) C) and D)
F) B) and D)

Question 14

Atlas Door tightly controlled logistics so that it always shipped only fully complete orders to construction sites.In regard to the five forces model,which of the following is a reason this might give them competitive advantage?

Accepted Answer

A)   It helps to reduce the threat of new entrants.
B)   It created low entry barriers for new entrants.
C)   It created a high threat of substitution.
D)   It gave more power to buyers.E) All of the above
F) A) and D)

Question 15

A firm typically achieves an absolute cost advantage by offering a ________ product or service to a ________ target market using standardization to derive the greatest benefits from economies of scale and experience.

Accepted Answer

A)   no frills; narrow
B)   complex; narrow
C)   no frills; broad
D)   complex; diverseE) B) and C)
F) C) and D)

Question 16

Many firms have achieved success by integrating activities throughout the extended value chain by using ________ to link their own value chain with the value chains of their customers and suppliers.

Accepted Answer

A)   customization
B)   information technology
C)   human resources
D)   competitive advantageE) A) and B)
F) None of the above

Question 17

Improving business processes by reengineering them,benchmarking specific activities against industry leaders,encouraging employee input to identify excess costs,increasing capacity utilization,and improving employee productivity lead to a significant overall gain.These are examples of which turnaround strategy used by successful companies?

Accepted Answer

A)   asset and cost surgery
B)   selective product and market pruning
C)   piecemeal productivity improvements
D)   global expansionE) A) and B)
F) C) and D)

Question 18

The factors that lead to a low-cost position also provide a substantial ________ barriers position with respect to ________ products introduced by new and existing competitors.

Accepted Answer

A)   entry; substitute
B)   exit; primary
C)   product; substitute
D)   entry; primaryE) All of the above
F) A) and C)

Question 19

Primark,an Irish clothing retailer,uses an overall cost leadership strategy.This could fail if it

Accepted Answer

A)   maintains parity with competitors on low cost.
B)   cannot maintain parity on differentiation dimensions requested by customers.
C)   exceeds customer expectations.
D)   increases its sales prices while maintaining competitor parity.E) A) and D)
F) A) and C)

Question 20

Which of the following is not a reason for the possible erosion of company competitive advantage?

Accepted Answer

A)   rapid change in technology
B)   globalization
C)   actions by rivals from within and outside of the industry
D)   company commitment to innovationE) All of the above
F) B) and C)

Exam 5: Business-level Strategy: Creating and Sustaining Competitive Advantages

A firm typically achieves an absolute cost advantage by offering a product or service to a target market using standardization to derive the greatest benefits from economies of scale and experience.

Correct Answer
verified

What are the pitfalls of the overall cost leadership strategy? Provide an example for each pitfall and explain why it is a pitfall.

Correct Answer
verified
Potential pitfalls of overall cost leade...
View Answer

An important advantage of first movers in a market is that they may establish brand recognition that may later serve as an important switching cost.

Correct Answer
verified

Correct Answer
verified

Which of the following is false regarding how a differentiation strategy can help a firm to improve its competitive position relative to the Porter five-forces model?

Correct Answer
verified

The most likely time to pursue a harvest strategy is in a situation of

Correct Answer
verified

An example of a firm applying the overall cost leadership generic strategy in a value-chain activity would be to automate the production assembly line to reduce scrappage from quality errors.

Correct Answer
verified

The growth stage of the industry life cycle is characterized by

Correct Answer
verified

Primark,an Irish clothing retailer,uses an overall cost leadership strategy.This could fail if it

Correct Answer
verified

The factors that lead to a low-cost position also provide a substantial barriers position with respect to products introduced by new and existing competitors.

Correct Answer
verified

High product differentiation is generally accompanied by

Correct Answer
verified

Which of the following is not a reason for the possible erosion of company competitive advantage?

Correct Answer
verified

Hardware chains such as Ace and True Value are losing market share to rivals such as Lowe's and Home Depot in spite of them using a focus strategy.Why?

Correct Answer
verified

Primark,a fashion retailer,has found a way to keep its cost structure lower than its rivals by leveraging streamlined logistics,a low marketing budget,and negotiating bargain prices from its suppliers.They are using a(n) ________ strategy.

Correct Answer
verified

A firm can achieve differentiation through all the following means except

Correct Answer
verified

Many firms have achieved success by integrating activities throughout the extended value chain by using ________ to link their own value chain with the value chains of their customers and suppliers.

Correct Answer
verified

Two-sided or platform markets are an emerging trend according to the textbook authors.Choose an example of an existing platform market and explain how this firm positions itself to become the dominant player linking suppliers and customers.

Correct Answer
verified
Successful platform firms create a busin...
View Answer

Atlas Door tightly controlled logistics so that it always shipped only fully complete orders to construction sites.In regard to the five forces model,which of the following is a reason this might give them competitive advantage?

Correct Answer
verified

Which of the following reasons is not a reason that Atlas Door could lose competitive advantage?

Correct Answer
verified

What is a focus strategy? Provide an example where this has been implemented successfully.

Correct Answer
verified
A focus strategy is based on the choice ...
View Answer

Exam 5: Business-level Strategy: Creating and Sustaining Competitive Advantages

A firm typically achieves an absolute cost advantage by offering a ________ product or service to a ________ target market using standardization to derive the greatest benefits from economies of scale and experience.

Correct AnswerverifiedShow Answer

What are the pitfalls of the overall cost leadership strategy? Provide an example for each pitfall and explain why it is a pitfall.

Correct AnswerverifiedPotential pitfalls of overall cost leade...View AnswerShow Answer

An important advantage of first movers in a market is that they may establish brand recognition that may later serve as an important switching cost.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is false regarding how a differentiation strategy can help a firm to improve its competitive position relative to the Porter five-forces model?

Correct AnswerverifiedShow Answer

The most likely time to pursue a harvest strategy is in a situation of

Correct AnswerverifiedShow Answer

An example of a firm applying the overall cost leadership generic strategy in a value-chain activity would be to automate the production assembly line to reduce scrappage from quality errors.

Correct AnswerverifiedShow Answer

The growth stage of the industry life cycle is characterized by

Correct AnswerverifiedShow Answer

Primark,an Irish clothing retailer,uses an overall cost leadership strategy.This could fail if it

Correct AnswerverifiedShow Answer

The factors that lead to a low-cost position also provide a substantial ________ barriers position with respect to ________ products introduced by new and existing competitors.

Correct AnswerverifiedShow Answer

High product differentiation is generally accompanied by

Correct AnswerverifiedShow Answer

Which of the following is not a reason for the possible erosion of company competitive advantage?

Correct AnswerverifiedShow Answer

Hardware chains such as Ace and True Value are losing market share to rivals such as Lowe's and Home Depot in spite of them using a focus strategy.Why?

Correct AnswerverifiedShow Answer

Primark,a fashion retailer,has found a way to keep its cost structure lower than its rivals by leveraging streamlined logistics,a low marketing budget,and negotiating bargain prices from its suppliers.They are using a(n) ________ strategy.

Correct AnswerverifiedShow Answer

A firm can achieve differentiation through all the following means except

Correct AnswerverifiedShow Answer

Many firms have achieved success by integrating activities throughout the extended value chain by using ________ to link their own value chain with the value chains of their customers and suppliers.

Correct AnswerverifiedShow Answer

Two-sided or platform markets are an emerging trend according to the textbook authors.Choose an example of an existing platform market and explain how this firm positions itself to become the dominant player linking suppliers and customers.

Correct AnswerverifiedSuccessful platform firms create a busin...View AnswerShow Answer

Atlas Door tightly controlled logistics so that it always shipped only fully complete orders to construction sites.In regard to the five forces model,which of the following is a reason this might give them competitive advantage?

Correct AnswerverifiedShow Answer

Which of the following reasons is not a reason that Atlas Door could lose competitive advantage?

Correct AnswerverifiedShow Answer

What is a focus strategy? Provide an example where this has been implemented successfully.

Correct AnswerverifiedA focus strategy is based on the choice ...View AnswerShow Answer

A firm typically achieves an absolute cost advantage by offering a product or service to a target market using standardization to derive the greatest benefits from economies of scale and experience.

Correct Answer
verified

Correct Answer
verified
Potential pitfalls of overall cost leade...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The factors that lead to a low-cost position also provide a substantial barriers position with respect to products introduced by new and existing competitors.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Successful platform firms create a busin...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A focus strategy is based on the choice ...
View Answer