TRUE / FALSE QUESTIONS
1. A business level strategy consists of the competitive approach of a single line of business instead of the entire corporation.
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2. Market penetration is an external growth strategy.
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3. In general, firms create competitive advantage by offering a basic product at a premium price and/or a preferred product at a low price.
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4. Analyzers are usually the first to enter new markets.
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5. Reactors are best suited to move quickly into new market opportunities.
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6. Experience effects and economies of scale both contribute to reduce Costs per unit.
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7. In differentiation strategies, the emphasis is on creating value through uniqueness.
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8. A best cost strategy combines the elements of low-cost leadership and differentiation.
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9. The industry life cycle portrays how sales volume for a class of products changes over its lifetime.
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10. A competitive shakeout usually occurs at the beginning of the growth stage of the product life cycle.
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