MNGT 4800 Final Exam (100% Verified)

Business Strategy asks the question . . . correct answers how to compete in a single product market Concentration Strategies refers to correct answers actions firms use to compete in a single industry 3 types of concentration strategies correct answers market penetration, market development, and product development Market Penetration correct answers attempt to gain additional market share in an existing market using existing products Market Development correct answers attempting to sell existing products in new markets (either entering a new retail channel or new geographic region) Product Development correct answers refers to the creation of new products to serve existing markets Horizontal Integration correct answers an attempt to pursue a concentration strategy by acquiring or merging with a rival Acquisition correct answers describes the purchase or takeover of one company by another Merger correct answers describes the joining of two independent companies to form a combined entity Sources of Value Creation Advantages correct answers - reduction in competitive intensity - positively effects several Porter's forces - lower costs - increased differentiation Reduction in Competitive Intensity correct answers surviving firms focus less on price competition, possibly increasing profitability Positively effects several Porter's forces correct answers reduces power of buyers and suppliers, the threat of firm entry, and rivalry among existing competitors Lower costs correct answers firms can lower costs through increased economies of scale Increased differentiation correct answers can help firms fill gaps in their products and service offerings Sources of Cost Advantages correct answers - Integration failure - Reduced flexibility