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Exam 5: Business-Level Strategy: Creating and Sustaining Competitive Advantages

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Question 31

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Explain how a differentiation strategy enables a business to address the five competitive forces in such a way that it can enjoy high levels of profitability.

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Differentiation provides protection agai...

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Question 32

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Developing uniqueness that is not valuable is:

A) an essential feature of a differentiation strategy.
B) the result of having brand-loyal customers become more sensitive to prices.
C) a potential pitfall of a differentiation strategy.
D) an necessary evil of a cost-leadership strategy.

E) All of the above
F) A) and B)

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Question 33

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A firm can achieve differentiation through all of the following means except

Which of the following is a risk (or pitfall) of cost leadership?

Support value chain activities that involve excellent applications,engineering support (technology development) and facilities that promote a positive firm image (firm infrastructure) characterize what generic strategy?

Discuss the risks associated with each of these forms of competitive advantage-cost leadership,differentiation,and focus.

To generate above average returns,a firm following an overall cost leadership position should not be concerned with attaining parity or proximity on the basis of differentiation relative to its peers.

The experience curve suggests that cutting prices is a good strategy

One of the advantages of high differentiation is that even if many competitors follow the same strategy,differentiation still exists for all.

Differentiation provides lower margins that enable a firm to deal with supplier power.

A firm striving for cost leadership will typically spend relatively more on product related R&D than on process related R&D.

A ____________ can be defined as the total profits in an industry at all points along the industry's value chain.

Primary value chain activities that involve the effective layout of receiving dock operations (inbound logistics) and support value chain activities that include expertise in process engineering (technology development) characterize what generic strategy?

The experience curve concept suggests that production costs tend to decrease as production increases regardless of where an industry is at in its life cycle.