mgmt 481 ch 1, 2, 3, 5, minicases Exam Questions And Answers

Apple developed iTunes as a complement to drive iPod sales. Which aspect of differentiation strategy does this move represent? - ANS value driver Smartphone sales have stagnated in developed countries, but they continue to experience high growth in emerging economies. Which aspect of the industry does this trend reflect? - ANS industry life cycle Every September, Apple releases new versions of its iPhone, boasting improved functions—for example, wireless charging. Which type of innovation does this action reflect? - ANS incremental The success of Starbucks lies in its ability to create for the customer a unique experience or "third place" between home and work. This unique experience is also known as Starbucks' - ANS core competency Between 2004 and 2008, Starbucks expanded operations rapidly and attempted to diversity from its core business. These efforts diluted its core culture, resulting in competitive parity because the customer experience that was its core competency was no longer - ANS rare Starbucks' adoption of social media and an app that focuses on customer satisfaction suggests that competitive advantage is more likely to spring from ________ resources than from ________ resources. - ANS intangible; tangible one of Howard Schultz's strategic initiatives after retaining the reins of Starbucks in 2008 was to shut the company's 7,000 stores for one day so baristas could relearn what makes the Starbucks brand unique. This initiative reflects a focus on which type of strategy? - ANS differentiation Using the PESTEL framework, which factors were the most powerful in influencing the failure of Blackberry? - ANS technological and sociocultural Which of Porter's five forces was likely the most powerful factor influencing the failure of Blackberry? - ANS threat of new entrants Blackberry's response to the introduction of the iPhone was described in the case. The threat of the iPhone came from which environment? - ANS task enviornment Which best describes the competitive industry structure in which Blackberry found itself? - ANS oligopoly Gillette invented the safety razor. When they decided to sell the safety razor at a low price then charge higher prices for replacement blades, they created a new business model called - ANS razor-razor-blade model. When Gillette created the high-end, 6-blade razor, they exceeded market demands. Economic value created determines how much customers value a product. In this case, Gillette failed to achieve - ANS consumer surplus Despite one of its premium shavers, Gillette enjoyed a 75 percent share of the shaving market. That market share means that they likely possessed - ANS a competitive advantage When Dollar Shave entered the market with razors and blades at $1 plus $2 shipping, which was far below existing razor prices, they were able to achieve a - ANS consumer surplus