Chapter #5 part #1

A visually appealing illustration showing various competitive strategies in business, including aspects like cost leadership, differentiation, and market positioning. Include elements like charts, arrows, and business people discussing strategies.

Mastering Competitive Strategies Quiz

Test your knowledge of competitive strategies and how to sustain a competitive edge in the business world. This quiz covers essential concepts and challenges related to generic strategies, low-cost leadership, and differentiation. Perfect for students and professionals alike!

10 engaging multiple-choice questions
Deepen your understanding of strategic competitive positioning
Ideal for marketing enthusiasts and business students

10 Questions2 MinutesCreated by StrategicMind123

For all types of generic strategies, a company’s success in sustaining its competitive edge depends on

Its market and competitive environment, a defensible niche, and homogeneous strategic group.

Establishing a central theme for how the company will endeavor to outcompete its rivals and engage complementors with cooperative strategies.

Having resources and capabilities that rivals have trouble duplicating and for which there are no good substitutes.

Defining its differences in terms of product line, production emphasis, location, joint ventures, and strategic alliances.

Defining its differences in terms of marketing emphasis, strategic group intracompetition, and the means of maintaining strategy.

The five generic types of competitive strategy are not characterized by a ________ provider strategy.

The generic types of competitive strategies include

Build market share, maintain market share, and slowly surrender market share.

Offensive strategies and defensive strategies.

Low-cost provider, broad differentiation, focused low-cost, focused differentiation, and best-cost provider strategies.

Low-cost/low-price strategies, high-quality/high-price strategies, medium-quality/medium-price strategies, low-cost/high-price strategies.

Price leader strategies, price follower strategies, technology leader strategies, first-mover strategies, offensive strategies, and defensive strategies.

A company’s competitive strategy deals with

Management’s game plan for securing a competitive advantage relative to rivals.

What its strategy will be in such functional areas as R&D, production, sales and marketing, distribution, finance and accounting, and so on.

Its efforts to change its position on the industry’s strategic group map.

Its plans for entering into strategic alliances, utilizing mergers or acquisitions to strengthen its market position, outsourcing some in-house activities to outside specialists, and integrating forward or backward.

Tweaking the value chain drivers to make them more cost competitive with rivals.

A competitive strategy of striving to be the low-cost provider is particularly attractive when

Buyers are not price sensitive.

The industry is made up of a large number of or equal-sized rivals.

There are many ways to achieve product differentiation that have value to buyers.

Price competition is especially vigorous, buyers have low switching costs, and the majority of industry sales are made to a few large-volume buyers.

Switching costs are high, price competition is strong, and buyers tend to use the industry’s products in many different ways.

Low-cost leaders who have the lowest industry costs are likely to

Pursue backward or forward integration to detour suppliers or buyers with considerable bargaining power and leverage.

Move the performance of most all value chain activities to low-wage countries.

Sell direct to users of their product or service and eliminate use of wholesale and retail intermediaries.

Have out-managed rivals in finding ways to perform value chain activities more cost-effectively.

Be considering exiting the current product market and using their competitive low-cost strength to gain a competitive advantage in other product arenas.

Which of the following is not one of the pitfalls of a low-cost provider strategy?

Overly aggressive price cutting

Using a cost-based advantage to improve the company’s bargaining position with high-volume buyers

Using approaches to reducing costs that can be easily copied by rivals

Cutting prices more than the size of a company’s cost advantage

Becoming so fixated on cost reductions that products become too features-poor

A competitive strategy to be the low-cost provider in an industry typically does not work well when

Price competition among rival sellers is especially vigorous.

Commodity-based product prevails and minimal differentiation exists.

Buyers incur low costs in switching their purchases from one seller or brand to another.

Industry newcomers use low introductory prices to attract buyers and build a customer base.

Emergent strategies are required to respond to changes in competitor power.

A low-cost leader can translate its low-cost advantage over rivals into superior profit performance by

Cutting its price to levels significantly below the prices of rivals.

Using its low-cost edge to underprice competitors and attract price-sensitive buyers in large enough numbers to increase total profits or refraining from price cutting and using the low-cost advantage to earn a higher profit margin on each unit sold.

Going all out to use its cost advantage to capture a dominant share of the market.

Spending heavily on advertising to promote the fact that it charges the lowest prices in the industry.

Outproducing rivals and thus having more units available to sell.

A differentiation-based competitive advantage

Nearly always is attached to the quality and service aspects of a company’s product offering.

Most often is the result of highly effective marketing and advertising campaigns designed to build awareness and recognition of the product or service offering.

Requires developing at least one distinctive competence that buyers consider valuable.

Hinges on a company’s success in developing top-of-the-line product features that will command the biggest price premium in the industry.

Often hinges on incorporating features that: (1) raise the performance of the product, (2) lower the buyer’s overall costs of using the company’s product, (3) enhance buyer satisfaction in intangible or noneconomic ways, or (4) deliver value to customers by exploiting competitive capabilities that rivals can’t match.

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Chapter #5 part #1

Mastering Competitive Strategies Quiz

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