Review

What are the four distinct competitive strategic alternatives and the combined option?

• A broad, low-cost strategy; Broad differentiation strategy; Low-cost concentration strategy; Focused differentiation strategy; Best cost strategy

• General management strategy; Broad differentiation strategy; Low-cost concentration strategy; Focused differentiation strategy; Best cost strategy

• Product strategy; A broad, low-cost strategy; Low-cost concentration strategy; Focused differentiation strategy; Best cost strategy

• Distribution strategy; A broad, low-cost strategy; Broad differentiation strategy; Low-cost concentration strategy; Best cost strategy

Which strategy below concentrates on a narrow buyer segment and outcompeting rivals on costs, thus being able to serve niche members at a lower price?

• A best-cost provider strategy.

• A focused low-cost strategy.

• A lower-cost provider.

• A focused differentiation strategy .

When a differentiation strategy works best?

• Buyer needs and uses of the product are diverse.

• Technological change is fast-paced and competition revolves around rapidly evolving product features.

• Both A&B.

• None of the above.

What are the two main paths to cost advantage?

• Based on the creative element; and improve the company's value chain activities to eliminate or omit some activities that generate costs.

• Focus on the key factors to win, and based on promoting relative advantage.

• Perform value chain activities more cost-effectively than competitors overall; and improve the company's value chain activities to eliminate or omit some activities that generate costs.

• Based on the exploitation of the ability of the factor surrounding the key element; and improve the company's value chain activities to eliminate or omit some activities that generate costs.

What pitfalls should be avoided when pursuing a low-cost strategy?

• Higher unit sales and market shares do not automatically translate into higher profits.

• Relying on cost reduction approaches that can be easily copied by rivals.

• Becoming too fixated on cost reduction.

• All of the answers.

What is the most successful approach to differentiation?

• Difficult for rivals to duplicate.

• Reasonable prices.

• Huge resources.

• Adaptable products.

Disadvantages of differentiation strategy include all of these EXCEPT:

• A price perceived as too expensive.

• Not understanding what customer want.

• Changing customer preferences.

• Ability to charge more for unique products..

Why can Differentiation strategies fail?

• A differentiation strategy keyed to product or service attributes that are easily and quickly copied is always suspect.

• Differentiation strategies can also falter when buyers see huge value in the unique attributes of a company’s product.

• To achieve a low-cost advantage over rivals.

• Invest on facilities too much.

The Best-Cost Strategy

• May address either a broad and narrow (focused) customer base.

• May address a broad customer base.

• May address a narrow customer base.

• For customers having less money.

What is the Value-Conscious Buyer? 

• The ones who prefer buying products with additional attributes at a high price.

• The ones who prefer the mass of products.

• The ones who are ready to pay for products with higher features at the economic price.

• The ones who preferlow-cost products.