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Total questions: 10
Worksheet time: 3mins
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.
