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Worksheetscompetitive advantage
Total questions: 20
Worksheet time: 13mins
What is the coolest thing about Sustainable Competitive Advantage?
It's like a secret weapon that only small businesses can use.
It's like finding a pot of gold at the end of a rainbow.
It's like having a temporary superpower that fades away quickly.
It's like having a long-lasting edge over your competition.
What are the main ingredients for achieving Cost Leadership?
Low production costs though less investment in infrastructure
Small scale operations, and less costs through micro-management
Efficient production processes, economies of scale, technological advancements
Every element (people, machines) in the firm is all the time in operation and not idle
How can a company make itself stand out in the market?
By selling low-quality products
By raising the prices of products
By pursuing an activist strategy
By offering unique products or services that are valued by customers
Why is it important for a company to have Sustainable Competitive Advantage?
To not rely on government subsidies for survival
To maintain its position in the market and outperform competitors over the long term.
To make consistently profits
To stand out in the market
What are the potential downsides of pursuing Cost Leadership Strategy?
Higher profit margins, but decreased customer satisfaction
Lower quality products or services, reduced customer loyalty, and potential price wars with competitors
Reduced customer base, and decreased market share
Increased customer loyalty and reduced competition
How can a company maintain its Differentiation Strategy over time?
Doing never the same as the competitors
Focusing only on customer feedback
Continuously innovating and improving products or services
Offering the same products or services over time
What are some examples of sources of Sustainable Competitive Advantage?
Large Number of Partnerships and Alliances
Aggressive Pricing Strategies
Aggressive Pricing Strategies, High Quarterly Profits and Short-term Revenue Growth
Unique technology, brand reputation, economies of scale, and exclusive access to resources
Superior Employee Productivity
the conditions that make a business more successful than the businesses it is competing with, or a particular thing that makes it more successful
proven track record
competitive advantage
credit worthiness
all the successful achievements that a person or a company has had in the past
proven track record
rapport
competitive advantage
1. A business can create a competitive advantage by
Decreasing the price
Only selling the product online
Improving the quality of the product or service
Targeting the same market as its competitor
Innovation can help a business increase its competitive advantage.
False
True
Comparative Advantage is when a business can produce something more efficiently than a rival
TRUE
FALSE
Customer demand is constantly changing due to changes in:
Tastes and fashion
Population (age and gender)
Price of goods and services
All of the above
Profit margin:
Can NOT be expressed as a percentage
Indicates the financial health of a business
Healthy profit margins are the same in all industries
All of the above
Business can reduce costs by
Eliminating waste
Buying inputs in bulk
Outsourcing or offshoring
All of the above
