Q#1: What sets focused (or market niche) strategies apart from low-cost leadership and broad differentiation strategies is
(A) The extra attention paid to top-notch product performance and product quality
(B) Their concentrated attention on serving the needs of buyers in a narrow piece of the overall market
(C) Greater opportunity for competitive advantage
Answer: (B) Their concentrated attention on serving the needs of buyers in a narrow piece of the overall market
Q#2: Companies pursuing a focused low-cost or focused differentiation strategy strive to
(A) Build a value-based competitive advantage keyed to product uniqueness
(B) Develop capability to serve multiple market segments
(C) Do a better job of serving the needs of buyers in the target niche than competitors
Answer: (C) Do a better job of serving the needs of buyers in the target niche than competitors
Q#3: A focused low-cost strategy seeks to achieve competitive advantage by
(A) Offering absolute rock-bottom price
(B) Delivering more value for money
(C) Lower cost per unit in all activities
(D) Dominating many niches
(E) Serving buyers at lower cost and price in a niche
Answer: (E) Serving buyers at lower cost and price in a niche
Q#4: The chief difference between a low-cost leader strategy and a focused low-cost strategy is
(A) Product differentiation level
(B) Buyer bargaining power
(C) Size of buyer group targeted
Answer: (C) Size of buyer group targeted
Q#5: A focused differentiation strategy aims at securing competitive advantage
(A) Premium product at premium price
(B) Low price upscale product
(C) Unique product for narrow buyer group
Answer: (C) Unique product for narrow buyer group
Q#6: A focused low-cost strategy can lead to attractive competitive advantage when
(A) Buyers want best value
(B) Buyers want low price
(C) Price-sensitive buyers
(D) High growth niche
(E) Cost advantage through niche focus
Answer: (E) Cost advantage through niche focus
Q#7: The chief difference between broad differentiation and focused differentiation is
(A) Size of buyer group
(B) Bargaining power
(C) Degree of differentiation
Answer: (A) Size of buyer group
Q#8: Which does NOT represent attractive conditions for a focused strategy?
(A) Difficult for rivals to serve niche
(B) Many market niches exist
(C) Leaders ignore niche
(D) Niche not overcrowded
(E) Buyers not brand loyal and rivals use focused strategies
Answer: (E) Buyers not brand loyal and rivals use focused strategies
Q#9: Risks of focused strategy include
(A) Rivals matching capabilities
(B) Changing buyer preferences
(C) Overcrowding of niche
(D) Slow niche growth
(E) All of these
Answer: (E) All of these
Q#10: Production emphasis in broad differentiation strategy involves
(A) Cost reduction without quality loss
(B) Manufacturing innovation leadership
(C) Building differentiating features customers pay for
Answer: (C) Building differentiating features customers pay for
Q#11: Marketing emphasis in broad differentiation strategy is to
(A) Underprice rivals
(B) Highlight features and charge premium price
(C) Use coupons and ads
Answer: (B) Highlight features and charge premium price
Q#12: Keys to sustaining broad differentiation strategy are
(A) Innovation and concentration on features
(B) Premium pricing and loyalty
(C) Advertising dominance
Answer: (A) Innovation and concentration on features
Q#13: Marketing emphasis of focused low-cost strategy is to
(A) Highlight low price
(B) Highlight no-frills product
(C) Heavy advertising
(D) Communicate value of budget product
Answer: (D) Communicate value of budget product
Q#14: Big danger in strategy selection is
(A) Low-cost strategy
(B) Stuck-in-the-middle strategy
(C) Differentiation strategy
Answer: (B) Stuck-in-the-middle strategy
Q#15: After choosing a generic strategy, companies must decide
(A) Alliances or partnerships
(B) Offensive/defensive moves
(C) Web strategy
Answer: (A) Alliances or partnerships
Q#16: Strategic alliances are
(A) Cheapest tech development method
(B) Collaboration between companies for mutual benefit
(C) Cost reduction tools
Answer: (B) Collaboration between companies for mutual benefit
Q#17: A strategic alliance is
(A) Defeating rivals
(B) Vertical integration
(C) Formal collaboration with shared resources and risk
Answer: (C) Formal collaboration with shared resources and risk
Q#18: Alliances are valuable because
(A) Needed in all tech industries
(B) Help global expansion and access markets
(C) Ensure first-mover advantage
Answer: (B) Help global expansion and access markets
Q#19: Best strategic alliances are
(A) Broad partnerships
(B) Industry key success factor creators
(C) Focused on specific value chain benefits
Answer: (C) Focused on specific value chain benefits
Q#20: Companies use alliances in global competition to
(A) Fight suppliers
(B) Raise capital
(C) Enter markets and gain knowledge
Answer: (C) Enter markets and gain knowledge
Q#21: Alliances in technology frontiers help companies
(A) Avoid mergers
(B) Reduce risk only
(C) Build technology faster and expand capabilities
Answer: (C) Build technology faster and expand capabilities
Q#22: Alliances usually break apart due to all EXCEPT
(A) Diverging objectives
(B) Poor cooperation
(C) Better solo opportunities
(D) Profit-sharing disagreements
Answer: (D) Profit-sharing disagreements