What is business-level strategy? correct answers To achieve competitive advantage in a single product market
"How will we compete to gain & sustain competitive advantage?" correct answers 1. Who: which customer segments will we serve?
2. What: Customer needs, wishes, and desires will we satis...
MGT 499: Exam 2(100% Correct answers)
What is business-level strategy? correct answers To achieve competitive advantage in a single product
market
"How will we compete to gain & sustain competitive advantage?" correct answers 1. Who: which
customer segments will we serve?
2. What: Customer needs, wishes, and desires will we satisfy?
3. Why: do we want to satisfy them?
4. How: will we satisfy our consumers needs?
strategic trade-offs correct answers Choices between a cost or value position.
Tension between -
1. value creation
2. pressure to keep cost in check
Such choices are necessary because higher value creation tends to generate higher cost.
generic business strategy correct answers a strategy that can be adopted by any firm, regardless of the
product or industry involved, to achieve a competitive advantage.
-differentiation
- cost leadership
Differentiation correct answers 1. Seeks to create higher value than competitors
,2. Offers products or services with unique features
3. Keeps the firm's cost structure as low as possible
Charges higher prices
Focused Differentiation correct answers Ex: Mont Blanc: exquisite pens at several hundred dollars
Focused Cost Leadership correct answers Ex: BIC: disposable pens and lighters at low cost
Scope of competition correct answers the size - narrow or broad - of the market in which a firm chooses
to compete
Differentiation Strategy correct answers 1. Unique features that increase value of goods and services (add
value to products and services)
2.Consumers are willing to pay a higher price (response to customer preferences)(can increase cost:
Additional R&D, innovation needed, but customer willing to pay premium)
3.The focus of competition
a. unique product features/ service
b. new product launches
c. Marketing and promotions
- Reduce the firm's cost below its competitors
-Offer adequate value
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