Competitive Advantage Quiz

What is competitive advantage?

• A temporary increase in sales

• The ability to outperform competitors by offering unique value

• A marketing strategy for customer retention

• The total cost of production

Which of the following is NOT a source of competitive advantage?

• Cost leadership

• Differentiation

• Government regulations

• Focus strategy

Core competencies are best described as:

• Resources a company can easily buy

• Unique capabilities that provide competitive advantage

• The same as financial capital

• Temporary business strategies

Michael Porter's generic strategies for gaining competitive advantage include:

• Innovation, branding, and advertising

• Cost leadership, differentiation, and focus

• Expansion, diversification, and retrenchment

• Planning, organizing, and controlling

A company using a differentiation strategy gains competitive advantage by:

• Offering the lowest prices in the market

• Focusing on a niche segment

• Providing unique and high-quality products or services

• Increasing production capacity

Core competencies should be:

• Imitable and easily replaceable

• Valuable, rare, and difficult to imitate

• Focused only on cost reduction

• Unrelated to customer needs

What is an example of a company gaining a sustainable competitive advantage?

• A restaurant temporarily lowering prices

• A tech company continuously innovating and patenting new products

• A business increasing its advertising budget for a month

• A supermarket offering seasonal discounts

Which of the following best defines strategic resources?

• Resources that are valuable, rare, difficult to imitate, and organized

• Easily available resources in the market

• Resources used only for marketing purposes

• Any asset owned by the company

Which of the following is an example of a company leveraging its core competency?

• Apple focusing on design and innovation

• A local store offering generic products

• A company copying a competitor's product

• A startup reducing staff to cut costs

How can a company sustain its competitive advantage in the long run?

• Lowering prices indefinitely

• Continuously improving and innovating its core competencies

• Copying competitors' strategies

• Reducing investment in research and development