Competitive Advantage Quiz

What is a competitive advantage?

• A fun way to advertise

• A way for businesses to beat competitors

• A product that is more expensive

• A business with many employees

What does cost leadership mean?

• Charging the highest price

• Spending more on ads

• Keeping costs low to offer cheaper prices

• Selling to everyone

Which business is most likely using cost leadership?

• A luxury car brand

• A discount supermarket that keeps costs low

• A handmade jewellery store

• A tech company

What does differentiation mean?

• Making something unique

• Making something boring

• Copying a popular product

• Lowering prices

Which company is using differentiation?

• A store selling the cheapest pencils

• A phone company with advanced camera features

• A store with everything on sale

• A brand that sells bulk toilet paper

What is the focus strategy?

• Selling to everyone

• Ignoring trends

• Targeting a small group of customers

• Selling only overseas

A business only sells clothing for newborn babies. This is an example of:

• Cost Leadership

• Differentiation

• Focus

• Mass Marketing

Which of the following is NOT a competitive advantage strategy?

• Focus

• Innovation

• Differentiation

• Cost Leadership

Which business shows a focus on a niche market?

• A huge supermarket

• A pet grooming service for cats only

• A hardware store chain

• A general clothing store

What’s one benefit of cost leadership?

• High prices bring in loyal customers

• Customers love unique items

• Attracts price-sensitive buyers by keeping costs low

• It creates a strong brand image