U4 AOS 1 Bus Man Section 6 Quiz - Porter's Generic Stratgies

Which of the following best describes a strategy of differentiation, according to Porter's generic strategies model?

• When an organisation has a widely recognised brand name

• When an organisation has a competency that distinguishes it from other organisation in its industry

• hen an organisation's products or services offer features that are not offered by competitors' offerings

• When the products are perceived to offer greater satisfaction and for which customers are, consequently, prepared to pay premium price

The Generic Strategies were developed by _____

• Henry Cotter

• Michael Porter

• Nick Sorter

• Harry Potter

According to the Generic Startegies, businesses seek future growth by pursuing _________ .

• competitive advantage

• high profits

• effective change

• differentiation

Two advantages that a business may develop to gain market share.

• cost leadership and cost focus

• cost advantage and differentiation advantage

• differentiation advantage and cost focus advantage

• differentiation focus advantage and cost focus advantage

The range over which a business intends to compete may be either (a)   or narrow.

How many of the generic strategies are in the VCE Bus Man Study Design (SAC and exam)?

• one - cost leadership

• two- lower cost and differentiation

• three- cost leadership, differentiation, and focus

• four- cost leadership, differentiation, cost focus, and differentiation focus

What is a niche market?

• A market in which businesses sell to a large customer group with similar needs.

• A market in which businesses sell to a variety of customers.

• A market in which businesses sell to a small customer group with specific needs.

• A market in which businesses sell one product to many consumers.

An advantage of low-cost strategies ...

• Customers may perceive the product as being of lower quality

• Lowering costs permanently does not allow for sales later

• Competitors who cannot offer the same price will lose market share

• Savings can be used on immediate differentiation

A _____ is a particular group of consumers at which a product or service is aimed.

• target market

• differentiated offering

• pro forma

• patent

Members of a target market have similar _______.

• wants

• needs

• interest

• wants, needs, & interest