Crafting and executing strategy-Thompson , Strickland, Gamble, Peterae,Janes & Sutton- CH5
1 A company's competitive strategy deals with
A) the specific actions management plans to take to develop a better value chain than rivals.
B) how it plans to unify its functional and operating strategies into a cohesive effort aimed at successfully taking customers away from rivals.
C) deals exclusively with the specifics of management's game plan for competing successfully-its specific efforts to please customers, its offensive and defensive moves to counter the maneuvers of rivals, its responses to whatever market conditions prevail at the moment, its initiatives to strengthen its market position, and its approach to securing a competitive advantage vis-à-vis rivals.
D) its plans for under-pricing rivals and achieving product superiority.
E) the specific actions management intends to take to strongly differentiate its product offering from the offerings of rival companies in the industry.
2 The five generic types of competitive strategies include
A) offensive strategies, defensive strategies, differentiation strategies, low-cost strategies, and first-mover strategies.
B) low-cost leadership, broad differentiation, best-cost provider, focused low-cost, and focused differentiation.
C) offensive strategies, defensive strategies, striving to be a market leader, technological leadership strategies, and product innovation strategies.
D) low-price strategies, premium price strategies, middle-of-the-road strategies, product leadership strategies, and market share leadership strategies.
E) attacking competitor strengths, attacking competitor weaknesses, market leadership strategies, low-cost leadership strategies, and product superiority strategies.
3 A low-cost leader's basis for competitive advantage is
A) using an everyday low pricing strategy to gain the biggest market share.
B) bigger profit margins than rival firms.
C) high buyer switching costs because of the company's differentiated product offering.
D) meaningfully lower overall costs than competitors.
E) a reputation for charging the lowest prices in the industry.
4 A competitive strategy of striving to be the low-cost provider is particularly attractive when
A) buyers are large, have significant power to bargain down prices, use the product in much the same ways, and incur low costs in switching their purchases from one seller to another.
B) most rivals are trying to differentiate their product offering from those of rivals.
C) there are many ways to achieve higher product quality that have value to buyers.
D) buyers are not swayed by advertising and are not very brand-loyal.
E) most rivals are pursuing best-cost or broad differentiation strategies.
5 A broad differentiation strategy
A) is an attractive competitive approach whenever buyers' needs and preferences are too diverse to be satisfied by a product that is essentially identical from seller to seller.
B) can produce sustainable competitive advantage if the differentiating features possess strong buyer appeal and can't be copied or easily matched by rivals.
C) works best when the basis for differentiation is superior performance features and buyer switching costs are low.
D) offers a better chance for gaining market share than low-cost or best-cost provider strategies, and typically allows a firm to charge the highest price in the industry.
E) can produce sustainable competitive advantage if the differentiating features possess strong buyer appeal and can't be copied or easily matched by rivals; plus is an attractive competitive approach whenever buyers' needs and preferences are too diverse to be satisfied by a product that is essentially identical from seller to seller
6 Which of the following is not one of the four basic routes to achieving a differentiation-based competitive advantage?
A) Appealing to high-income buyers who are willing and able to pay a premium price for a high-performing, multi-featured product
B) Incorporating features that raise product performance
C) Incorporating product attributes and user features that lower the buyer's overall costs of using the company's product
D) Delivering value to customers via competencies and competitive capabilities that rivals don't have or can't afford to match
E) Incorporating features that enhance buyer satisfaction in intangible or non-economic ways
7 A strategy of being a best-cost provider
A) is the easiest of the five generic types of competitive strategies to copy or imitate.
B) combines a strategic emphasis on low cost with a strategic emphasis on more than minimally acceptable quality, service, features, and performance.
C) is almost always more profitable than focused or market niche strategies because of the potential for selling more units and realizing higher revenues.
D) is the most attractive of all the competitive strategies because it combines the best features of the four other generic types of competitive strategies.
E) is usually somewhat less profitable than either top-of-the-line differentiation or low-cost leadership strategies because it is based on achieving a weaker type of competitive advantage.
8 Which of the following are distinguishing features of a best-cost provider strategy?
A) The strategic target is price-conscious buyers
B) A marketing emphasis on charging a slightly higher price than rival brands having comparable features and attributes
C) A product line that stresses wide selection, many product variations, and emphasis on differentiating features
D) A competitive advantage based on more value for the money
E) Using constant product innovation, excellent R&D skills, and periodic technological breakthroughs to sustain the strategy
9 What sets focused (or market niche) strategies apart from low-cost leadership and broad differentiation strategies is
A) the extra attention paid to establishing a distinctive competence.
B) their concentrated attention on serving the needs of buyers in a narrow piece of the overall market.
C) greater opportunity for brand loyalty.
D) their suitability for market situations where technological change is fast-paced and continuous product innovation is a key success factor.
E) their bold strategic intent of global market leadership via heavy advertising.
10 A focused differentiation strategy aims at securing competitive advantage by
A) providing buyers in the target market niche with the best performance features at the best price.
B) catering to buyers looking for a medium-quality product at an average price.
C) offering buyers in the target market niche a product which they perceive is uniquely well suited to their tastes and preferences.
D) developing unique product attributes.
E) convincing buyers that the company is a true leader in product innovation.