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MGT 499: Exam 2(100% Correct answers)
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  • MGT 499
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  • MGT 499

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...

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  • December 11, 2024
  • 22
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • what is business level strategy

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  • MGT 499
  • MGT 499

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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


Competitive advantage achieved when: correct answers Value - Cost > competitors


Three Drivers That Can Increase Value correct answers 1. product features
2. customer service
3. complements


product features correct answers -- Increases perceived value

, -- Turns commodity products into differentiated products


-- Strong R&D capabilities are often needed


customer service correct answers -increases pervieved value


Example: Zappos
-offers free shipping both ways
- they do not outsource customer service
-dont use pre-determined scripts for service


EX: Trader Joes
- stores stock local product as request by the community


complements correct answers -increase percieved value


-consumed in tandem


EX: AT&T Uverse
--bundles internet access, phone, and tv services


EX: DVR
--enables recording of TV shows


Cost-Leadership Strategy:
Understanding Cost Drivers correct answers Goal


- Reduce the firm's cost below its competitors
-Offer adequate value

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