According to the overview, what is the main aim of Porter's strategies for businesses?

• To increase product variety

• To provide businesses with the ability to gain competitive advantage

• To reduce employee turnover

• To expand internationally

Which of the following best describes the focus of lower cost/cost leadership strategies according to the overview?

• A) Focus on external market segments

• B) Focus on internal processes and procedures

• C) Focus on product innovation

• D) Focus on customer service

According to the overview, differentiation strategies have more of an external focus, aimed at capturing segments of the _______.

• market

• company

• product

• team

Which of the following is NOT a way for a business to gain a competitive advantage through a low-cost strategy?

• A) Achieving economies of scale

• B) Implementing technology to reduce production costs

• C) Increasing advertising expenses

• D) Leveraging preferential access to raw materials/resources

A lower cost strategy is also known as ________.

• cost leadership

• differentiation

• focus strategy

• market penetration

A business using a low-cost strategy can remain profitable by achieving the lowest cost of operations among competitors.

• True

• False

A lower cost strategy is most viable in industries where there are many ________.

• cost-conscious customers

• high-income earners

• brand loyalists

• innovative leaders

Which of the following best describes a lower cost strategy?

• Offering high-priced luxury products

• Offering customers similar or lower-priced products compared to the industry average while remaining profitable

• Focusing only on product quality

• Ignoring production costs

Fill in the blank: In a low-cost strategy, businesses must make sure that in their pursuit to reduce costs, the ______ and ______ provided to the customer is not negatively impacted.

• value; quality

• price; location

• brand; advertising

• speed; convenience

Which of the following areas can cost reductions come from in a business according to the low-cost strategy?

• Only production

• Only marketing

• Any area such as design, production, marketing, delivery, and product support

• Only delivery