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Exam 5: Business Level Strategy

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Question 21

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A differentiation strategy is based on creating a product that customers perceive as being:

A) the same as other available products.
B) distinct from other available products.
C) the least costly product in the industry.
D) the most costly product in the industry.
E) cheaper, but inferior to the available products.

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Question 22

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A product's appeal to customers' desires cannot be considered a source of differentiation.

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Question 23

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Which of the following generic competitive strategies is a producer of commodity steel most likely to pursue?

Which of the following statements is true of differentiation and cost structure?

The efficiency frontier is not static; it is continually being pushed outwards by the efforts of managers to improve their firm's performance through innovation.

Yankee Candle Company offers customers candles that burn for 50-60 hours,much longer than most department store candle brands.Therefore,customers are willing to pay a higher price for these candles.Which of the following strategies is Yankee Candle Company following?

The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy is in the:

A firm's business model should contain three components: what is to be satisfied,who is to be satisfied,and how they will be satisfied.

Differentiation leads to high brand loyalty,which in turn significantly increases the threat of new firms entering the industry.

Companies with a differentiation advantage tend to charge a lower price for their products.

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by:

All focus strategies entail serving a specific market segment using a differentiation approach.

Differentiation can help a company to grow overall demand and capture market share from its rivals.

A market segment consists of a group of:

Delta Airlines used to advertise its high-quality air travel service by saying it flew "anywhere,anytime." What generic strategy is represented by this advertisement?

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by initiating price wars and driving weaker rivals out of the industry.

When a company recognizes that the needs of one market segment is not the same as another and accordingly customizes its product offerings,it is said to be pursuing:

One of the great advantages of successful value innovation is that it can catch rivals off guard and make it difficult for them to catch up.

When a company targets a certain segment or niche,and customizes its offering to the needs of that particular segment through the addition of features and functions,the company is pursuing a _____ strategy.

Define the generic business-level strategies companies pursue.