Multiple Choice Questions

out-managing rivals in finding ways to perform value chain activities faster, more accurately, and more cost efficiently.
  • Success with a best-cost provider strategy designed to outcompete high-end differentiators requires:
  • Success in achieving a low-cost edge over rivals comes from:
  • The keys to maintaining a broad differentiation strategy are:
  • Pursuing continuous quality improvement as a uniqueness factor is sound because:
achieving significantly lower costs in providing the upscale features
  • Cost-efficient management of a company's overall value chain activities requires that management:
  • Which of the following is NOT one of the ways that a company can achieve a cost advantage by revamping its value chain?
  • Which of the following is NOT one of the pitfalls of a low-cost provider strategy?
  • Success with a best-cost provider strategy designed to outcompete high-end differentiators requires:
incorporate attractive or upscale attributes into its product offering at a lower cost than rivals.
  • A competitive strategy to be the low-cost provider in an industry works well when:
  • At the heart of a production-based emphasis toward a low-cost provider strategy usually requires a company to:
  • The marketing emphasis of a company pursuing a focused low-cost provider strategy usually is to:
  • To profitably employ a best-cost provider strategy, a company must have the resources and capabilities to:
technological change is fast-paced and competition revolves around rapidly evolving product features.
  • A focused low-cost strategy seeks to achieve competitive advantage by:
  • The objective of a best-cost provider strategy is to:
  • A low-cost leader's basis for competitive advantage is:
  • A broad differentiation strategy works best in situations where:
whether a company's market target is broad or narrow and whether the company is pursuing a competitive advantage linked to low cost or differentiation.
  • Which one of the following generic types of competitive strategy is typically the "best" strategy for a company to employ?
  • The production emphasis of a company pursuing a broad differentiation strategy usually involves:
  • In which one of the following market circumstances is a broad differentiation strategy generally NOT well-suited?
  • The biggest and most important differences among the competitive strategies of different companies boil down to:
its capability to incorporate upscale or attractive attributes into its product offering at lower costs than rivals.
  • The essence of a broad differentiation strategy is to:
  • A competitive strategy of striving to be the low-cost provider is particularly attractive when:
  • The keys to maintaining a broad differentiation strategy are:
  • The competitive advantage of a best-cost provider is:
command a premium price for its product, and/or increase unit sales, and/or gain buyer loyalty to its brand.
  • Success in achieving a low-cost edge over rivals comes from:
  • The essence of a broad differentiation strategy is to:
  • The keys to maintaining a broad differentiation strategy are:
  • Successful differentiation allows a firm to:
Appealing to buyers who are sophisticated and shop hard for the best, stand-out differentiating attributes
  • A low-cost leader translates its low-cost advantage over rivals into superior profit performance by:
  • Which of the following is NOT one of the four basic routes to achieving a differentiation-based competitive advantage?
  • Which of the following is NOT one of the pitfalls of a low-cost provider strategy?
  • Low-cost leaders, who have the lowest industry costs, are exceptionally good at finding ways to drive costs out of their businesses and still provide a product or service that buyers find acceptable:
the target market niche is small enough to limit profitability and the outlook is ripe for differentiating.
  • There are several basic approaches to competing successfully and gaining a competitive advantage over rivals, such as:
  • A focused strategy aimed at securing a competitive edge and which is based either on low cost or differentiation becomes more attractive when:
  • What sets focused (or market niche) strategies apart from low-cost leadership and broad differentiation strategies is:
  • A strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or best-cost or focus/market niche strategy when:
One that is customized to fit the macro-environment, industry and competitive conditions, and the company's own resources and competitive capabilities
  • Which of the following is NOT one of the pitfalls of pursuing a differentiation strategy?
  • Which one of the following generic types of competitive strategy is typically the "best" strategy for a company to employ?
  • While there are many routes to competitive advantage, the two biggest factors that distinguish one competitive strategy from another involves:
  • In which one of the following market circumstances is a broad differentiation strategy generally NOT well-suited?
buyer needs and uses of the product are diverse and they are not fully satisfied by a standardized product.
  • Pursuing continuous quality improvement as a uniqueness factor is sound because:
  • A broad differentiation strategy works best in situations where:
  • Broad differentiation strategies generally work best in market circumstances where:
  • A competitive strategy predicated on low-cost leadership tends to work best when:
communicate the attractive features of a budget-priced product offering that fits niche members' expectations.
  • The marketing emphasis of a company pursuing a focused low-cost provider strategy usually is to:
  • The marketing emphasis of a company pursuing a broad differentiation strategy usually is to:
  • The production emphasis of a company pursuing a broad differentiation strategy usually involves:
  • Pursuing continuous quality improvement as a uniqueness factor is sound because:
A market share dominator strategy
  • Which of the following is NOT one of the ways that a company can achieve a cost advantage by revamping its value chain?
  • Which of the following is NOT an action that a company can take to do a better job than rivals of performing value chain activities more cost-effectively?
  • Which of the following is NOT one of the five generic types of competitive strategy?
  • Each of the five generic strategies positions the company differently, except when it concerns:
getting squeezed between the strategies of firms employing low-cost provider strategies and high-end differentiation strategies.
  • A competitive strategy of striving to be the low-cost provider is particularly attractive when:
  • A company attempting to be successful with a broad differentiation strategy has to:
  • A focused low-cost strategy seeks to achieve competitive advantage by:
  • A company's biggest vulnerability in employing a best-cost provider strategy is:
Setting the industry's price ceiling to capture volume gains and achieve economies of scale
  • Which of the following is NOT one of the pitfalls of pursuing a differentiation strategy?
  • Which of the following is NOT one of the pitfalls of a low-cost provider strategy?
  • Which of the following is NOT one of the ways that a company can achieve cost-efficient management of its value chain activities?
  • Which of the following is NOT one of the ways that a company can achieve a cost advantage by revamping its value chain?
seldom hesitate to spend aggressively on resources and capabilities that promise to drive costs out of the business.
  • Which of the following is NOT one of the pitfalls of a low-cost provider strategy?
  • A low-cost provider's product does NOT have to always:
  • While low-cost providers are champions of frugality, they:
  • How valuable a low-cost leader's cost advantage is depends on:
increases the perceived cost of switching to another product.
  • Brands create customer loyalty, which in turn:
  • Successful differentiation allows a firm to:
  • An example of how companies can revamp their value chain to reduce costs is:
  • Easy-to-copy differentiating features:
whether it is easy or inexpensive for rivals to copy the low-cost leader's methods or otherwise match its low costs.
  • How valuable a low-cost leader's cost advantage is depends on:
  • A broad differentiation strategy improves profitability when:
  • A focused low-cost strategy seeks to achieve competitive advantage by:
  • The big danger or risk of a best-cost provider strategy is:
requires performing value chain activities differently than rivals and building competitively valuable resources and capabilities that rivals cannot readily match or trump.
  • Best-cost provider strategies are appealing in those market situations where:
  • The biggest and most important differences among the competitive strategies of different companies boil down to:
  • Which of the following is NOT one of the pitfalls of pursuing a differentiation strategy?
  • Whatever strategic approach is adopted by a company to deliver value, it nearly always:
do two things: (1) perform value chain activities more cost-effectively than rivals, and (2) act proactively in revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-producing activities.
  • Success in achieving a low-cost edge over rivals comes from:
  • An example of how companies can revamp their value chain to reduce costs is:
  • To succeed with a low-cost provider strategy, company managers have to:
  • Pursuing continuous quality improvement as a uniqueness factor is sound because:
their concentrated attention on serving the needs of buyers in a narrow piece of the overall market.
  • A focused strategy aimed at securing a competitive edge and which is based either on low cost or differentiation becomes more attractive when:
  • Which of the following is NOT one of the ways that a company can achieve cost-efficient management of its value chain activities?
  • What sets focused (or market niche) strategies apart from low-cost leadership and broad differentiation strategies is:
  • Which of the following is NOT one of the ways that a company can achieve a cost advantage by revamping its value chain?
positioned to deliver affordable luxury products at mass market quality.
  • Which of the following is NOT one of the four basic routes to achieving a differentiation-based competitive advantage?
  • Low-cost leaders, who have the lowest industry costs, are exceptionally good at finding ways to drive costs out of their businesses and still provide a product or service that buyers find acceptable:
  • A low-cost leader's basis for competitive advantage is:
  • Which of the following is NOT one of the ways that a company can achieve cost-efficient management of its value chain activities?
deliver superior value to value-conscious buyers at a comparatively lower price than rivals
  • The objective of a best-cost provider strategy is to:
  • The essence of a broad differentiation strategy is to:
  • The competitive objective of a best-cost provider strategy is to:
  • The objective of differentiation:
meaningfully lower overall costs than rivals on comparable products.
  • A broad differentiation strategy works best in situations where:
  • Opportunities to differentiate a company's product offering:
  • While low-cost providers are champions of frugality, they:
  • A low-cost leader's basis for competitive advantage is:
offer similar goods at more attractive prices.
  • Cost-efficient management of a company's overall value chain activities requires that management:
  • The culture of a company can be a cost-efficient value chain activity because it can:
  • Which of the following is NOT one of the five generic types of competitive strategy?
  • The underlying criteria of a best-cost provider strategy usually is found in the ability of a company to:
performing value chain activities more cost-effectively than rivals or revamping the firm's overall value chain to eliminate or bypass some cost-producing activities.
  • There are several basic approaches to competing successfully and gaining a competitive advantage over rivals, such as:
  • The production emphasis of a company pursuing a broad differentiation strategy usually involves:
  • The big danger or risk of a best-cost provider strategy is:
  • The major avenues for achieving a cost advantage over rivals include:
incorporating tangible features that add functionality, increase customer satisfaction with the product specifications, functions, and styling.
  • The keys to maintaining a broad differentiation strategy are:
  • A route to take in developing a differentiation advantage includes:
  • A broad differentiation strategy works best in situations where:
  • The competitive objective of a best-cost provider strategy is to:
can exist in activities all along an industry's value chain.
  • How valuable a low-cost leader's cost advantage is depends on:
  • The keys to maintaining a broad differentiation strategy are:
  • Opportunities to differentiate a company's product offering:
  • A competitive strategy to be the low-cost provider in an industry works well when:
low-cost provider, broad differentiation, best-cost provider, focused low-cost and focused differentiation strategies.
  • The competitive advantage of a best-cost provider is:
  • The objective of a best-cost provider strategy is to:
  • The keys to maintaining a broad differentiation strategy are:
  • The generic types of competitive strategies include:
whether a company's target market is broad or narrow and whether the company is pursuing a competitive advantage linked to low costs or differentiation.
  • While there are many routes to competitive advantage, the two biggest factors that distinguish one competitive strategy from another involves:
  • Being the overall low-cost provider in an industry has the attractive advantage of:
  • Perceived value and signaling value are often an important part of a successful differentiation strategy because:
  • The biggest and most important differences among the competitive strategies of different companies boil down to:
most buyers use the product in much the same ways, with user requirements calling for a standardized product.
  • The objective of differentiation:
  • A competitive strategy of striving to be the low-cost provider is particularly attractive when:
  • The competitive objective of a best-cost provider strategy is to:
  • The marketing emphasis of a company pursuing a focused low-cost provider strategy usually is to:
When the products of rivals are weakly differentiated and most competitors are resorting to clever advertising to try to set their product offerings apart
  • Which of the following is NOT one of the ways managers can enhance differentiation based on uniqueness drivers?
  • In which one of the following market circumstances is a broad differentiation strategy generally NOT well-suited?
  • What sets focused (or market niche) strategies apart from low-cost leadership and broad differentiation strategies is:
  • Which one of the following generic types of competitive strategy is typically the "best" strategy for a company to employ?
to stress constant innovation to stay ahead of imitative rivals and to concentrate on a few differentiating features.
  • The keys to maintaining a broad differentiation strategy are:
  • The generic types of competitive strategies include:
  • The marketing emphasis of a company pursuing a broad differentiation strategy usually is to:
  • The competitive advantage of a best-cost provider is:
a hybrid of low-cost provider and differentiation strategies that aim at providing desired quality/features/performance/service attributes while beating rivals on price.
  • Achieving a cost advantage over rivals entails:
  • For a best-cost provider strategy to be successful, a company must have:
  • Best-cost provider strategies are:
  • Whatever strategic approach is adopted by a company to deliver value, it nearly always:
the market is composed of distinctly different buyer groups who have different needs or use the product in different ways.
  • Focused strategies keyed either to low-cost or differentiation are especially appropriate for situations where:
  • How valuable a low-cost leader's cost advantage is depends on:
  • A strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or best-cost or focus/market niche strategy when:
  • A focused low-cost strategy can lead to attractive competitive advantage when:
Increasing production capacity and then striving hard to operate at full capacity
  • Which of the following is NOT an action that a company can take to do a better job than rivals of performing value chain activities more cost-effectively?
  • Which of the following is NOT one of the ways that a company can achieve a cost advantage by revamping its value chain?
  • Which of the following is NOT one of the ways that a company can achieve cost-efficient management of its value chain activities?
  • Each of the five generic strategies positions the company differently, except when it concerns:
it can often reduce product defects, improve economy of use, and result in more end-user convenience.
  • A focused low-cost strategy can lead to attractive competitive advantage when:
  • Pursuing continuous quality improvement as a uniqueness factor is sound because:
  • A route to take in developing a differentiation advantage includes:
  • Which of the following is NOT one of the pitfalls of a low-cost provider strategy?
diverse buyer preferences make product differentiation the norm and where a large number of value-conscious buyers can be induced to purchase mid-range products.
  • Best-cost provider strategies are appealing in those market situations where:
  • Whatever strategic approach is adopted by a company to deliver value, it nearly always:
  • A low-cost provider's product does NOT have to always:
  • Being the overall low-cost provider in an industry has the attractive advantage of:
suggest that a low price, by itself, is not always that appealing to buyers.
  • A low-cost provider's product does NOT have to always:
  • The objective of a best-cost provider strategy is to:
  • A broad differentiation strategy improves profitability when:
  • While low-cost providers are champions of frugality, they:
seeks to deliver superior value to buyers by satisfying their expectations on key quality/service/features/performance attributes and beating their expectations on price (given what rivals are charging for much the same attributes).
  • The competitive advantage of a best-cost provider is:
  • The big danger or risk of a best-cost provider strategy is:
  • While low-cost providers are champions of frugality, they:
  • A firm pursuing a best-cost provider strategy:
resource strengths and competitive capabilities that allow it to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes.
  • For a best-cost provider strategy to be successful, a company must have:
  • Broad differentiation strategies generally work best in market circumstances where:
  • The major avenues for achieving a cost advantage over rivals include:
  • While low-cost providers are champions of frugality, they:
there are many ways to differentiate the product or service that have value to buyers.
  • Broad differentiation strategies are well-suited for market circumstances where:
  • Which of the following is NOT one of the pitfalls of a low-cost provider strategy?
  • A broad differentiation strategy improves profitability when:
  • Being the overall low-cost provider in an industry has the attractive advantage of:
study buyer needs and behavior carefully to learn what buyers consider important, what they think has value, and what they are willing to pay for.
  • A focused low-cost strategy seeks to achieve competitive advantage by:
  • A competitive strategy predicated on low-cost leadership tends to work best when:
  • A company attempting to be successful with a broad differentiation strategy has to:
  • A competitive strategy of striving to be the low-cost provider is particularly attractive when:
a firm can lower costs significantly by limiting its customer base to a well-defined buyer segment.
  • At the heart of a production-based emphasis toward a low-cost provider strategy usually requires a company to:
  • Focused strategies keyed either to low-cost or differentiation are especially appropriate for situations where:
  • A focused low-cost strategy seeks to achieve competitive advantage by:
  • A focused low-cost strategy can lead to attractive competitive advantage when:
delivering more value to its customers than rivals or delivering value more efficiently than rivals (or both).
  • There are several basic approaches to competing successfully and gaining a competitive advantage over rivals, such as:
  • The marketing emphasis of a company pursuing a focused low-cost provider strategy usually is to:
  • The biggest and most important differences among the competitive strategies of different companies boil down to:
  • Which of the following is NOT one of the ways that a company can achieve cost-efficient management of its value chain activities?
with a product offering carefully designed to appeal to the unique preferences and needs of a narrow, well-defined group of buyers.
  • A low-cost leader translates its low-cost advantage over rivals into superior profit performance by:
  • Low-cost leaders, who have the lowest industry costs, are exceptionally good at finding ways to drive costs out of their businesses and still provide a product or service that buyers find acceptable:
  • A focused differentiation strategy aims at securing competitive advantage:
  • A focused low-cost strategy seeks to achieve competitive advantage by:
Striving to ensure a corporate diversity policy is introduced with effective controls
  • Which of the following is NOT one of the ways that a company can achieve a cost advantage by revamping its value chain?
  • Which of the following is NOT an action that a company can take to do a better job than rivals of performing value chain activities more cost-effectively?
  • Which of the following is NOT one of the ways that a company can achieve cost-efficient management of its value chain activities?
  • Each of the five generic strategies positions the company differently, except when it concerns:
either using its lower-cost edge to under-price competitors and attract price-sensitive buyers in great enough numbers to increase total profits or maintain the present price, and using the lower-cost edge to earn a higher profit margin on each unit sold, thereby raising total profits and overall return on investment.
  • A focused differentiation strategy aims at securing competitive advantage:
  • A low-cost leader translates its low-cost advantage over rivals into superior profit performance by:
  • A low-cost provider's product does NOT have to always:
  • A competitive strategy predicated on low-cost leadership tends to work best when:
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Multiple Choice Questions
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