Differentiation allows a company to correct answers charge a premium price for its good or service
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 corr...
MGT 499 Exam 2(100% Correct answers)
Differentiation allows a company to correct answers charge a premium price for its good or service
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 correct
answers False
A company that focuses on a lower-income market segment: correct answers produces a basic offering to
reduce cost strategies
A company pursuing a focus strategy: correct answers concentrates on building market share in one
market segment
Differentiation can help a company grow overall demand and capture market share from its rivals correct
answers true
Actions taken at the functional level should support the business-level strategy, as should the
organizational arrangements of the enterprise. correct answers true
In which of the following situations is a differentiation strategy used? correct answers The industry is
fragmented into customer groups based on needs
Nick, a professional magician, is often invited to perform magic tricks at birthday parties and other social
gatherings from across the country. However, he offers his services only to clients who stay in the same
city as him. He is also known to charge less than other magicians in the city. Nick is pursuing which
generic business-level strategy? correct answers Focus low-cost strategy
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? correct answers Differentiation
Compared to a differentiator, the company that follows a low-cost strategy: correct answers absorbs cost
increases by powerful suppliers while keeping their lower pricing
, The main difference between companies following a broad low-cost strategy and those following a focus
low-cost strategy is in the: correct answers degree of market segmentation
The generic business-level strategies are cost leadership, differentiation, and mass marketing correct
answers false
When a company targets a certain segment or niche, and customizes its offering to the needs of that
particular segment thorugh the addition of features and functions, the company is pursuing: correct
answers focus differentation strategy
A market segment consists of correct answers customers who have similar needs
The way a product is differentiated from other products of its type and the price of the product determine
which product a customer chooses to satisfy his or her needs correct answers true
A generic business-level strategy that gives a company a specific form of competitive position and
advantage vis-à-vis its rivals, resulting in above-average profitability correct answers true
Which of the following generic competitive strategies would a producer of commodity steel most likely
pursue correct answers Broad low cost
Which of the following is NOT a main approach to market segmentation correct answers making one
product aimed toward a general, rather than a specific subset of customers
Which generic business-level strategy is based on the intent to lower costs so that a company can lower
prices and still make a profit correct answers broad low-cost strategy
When a company pioneers process innovations that lead to value innovation, it effectively changes the
game in an industry and may be able to outperform its rivals for a long period of time correct answers
True
All of the following are benefits of horizontal integration EXCEPT: correct answers reduced risk of
coming into conflict with the FTC
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