ch 5 BSG questions and Answers
a low-cost leader's foremost strategic objective is
achieving meaningfully lower costs than rivals--but not necessarily the absolute lowest possible cost.
A company can translate a low-cost advantage over rivals into attractive profit performance by
either (...
Ch 5 BSG questions and Answers
a low-cost leader's foremost strategic objective is - answer achieving meaningfully
lower costs than rivals--but not necessarily the absolute lowest possible cost.
A company can translate a low-cost advantage over rivals into attractive profit
performance by - answer either (1) charging a price comparable to other low price
drivers on, being content with the resulting sales volume and market share and relying
upon the low-cost edge over rivals to earn a bigger profit margin per unit sold thereby
boosting the form total profit and return on investment. Or (2) using its low cost edge
underprice competitors and attract price sensitive buyers in great enough numbers to
increase total profits
Which of the following is not one of the five generic types of competitive strategy -
answer a superior customer service strategy
which of the following is not an action that a company can take to do a better job than
rivals of performing value chain activities more cost-effectively? - answer minimize
reliance on any of the various cost-drivers shown in figure 5.2 to achieve cost savings
the two biggest factors that distinguish one competitive strategy from another concern -
answer whether a company's market target is broad or narrow and whether the
company is pursuing a competitive advantage linked to low costs or differentiation
a broad differentiation strategy generally works best for a company in situations where -
answer Buyer needs and uses of the product are diverse, there are many ways to
differentiate the product or service that have value to buyers, and few rivals are
pursuing a similar differentiation approach.
a strategy to be there industry's overall low-cost provider tends to be more appealing
than a differentiation or best-cost or focused (or market niche) strategy when - answer
buyers incur low costs in switching their purchases from one seller to another and the
products of rival sellers are essentially identical and readily available from many eager
sellers.
In which one of the following instances is a focused strategy keyed either to low-cost or
differentiation not likely to work well? - answer Most buyers use the product in the
same ways, the product of rival sellers are essentially identical and readily available
from many eager sellers, and price competition among rival sellers is vigorous
The pitfalls of a differentiation strategy include - answer differentiating on the basis of
attributes that produce an unenthusiastic response on the part of buyers (because they
do not perceive the differentiating features as valuable or worth paying for).
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