There exist important trade-offs between value creation and low cost because value creation and cost tend to be - Answer-positively correlated.
Firms pursuing a cost-leadership strategy seek to - Answer-deliver products or services at a lower cost than competitors.
Oberlo Autos competes again...
WPC 470 Test Exam Questions and
Answers
There exist important trade-offs between value creation and low cost because value
creation and cost tend to be - Answer-positively correlated.
Firms pursuing a cost-leadership strategy seek to - Answer-deliver products or services
at a lower cost than competitors.
Oberlo Autos competes against the global leaders in the automobile industry by
developing and selling acceptable quality vehicles at a lower price. This has been
possible due to the company's large-scale production that reduces its manufacturing
expenses. Which of the following generic business strategies is Oberlo Autos applying
in this scenario? - Answer-cost-leadership strategy
In a focused differentiation strategy, a firm seeks to - Answer-deliver products or
services with unique features to a specific, narrow part of the market.
If costs are equal, when a firm has a higher value gap than its competitor, it can be
inferred that the firm - Answer-can charge a premium price for its products and services.
Fones Inc. and Speed Dial Corp. are two competitors in the mobile phone market. The
cost incurred by each company to manufacture smartphones is $200 per unit. Although
both the companies sell their smartphones at the same price, Speed Dial Corp. has a
larger market share in the smartphone industry. What does this imply? - Answer-Speed
Dial Corp. has been able to offer more perceived value than Fones Inc.
Dr. Shetty is able to drive down the cost of complex medical procedures from $100,000
to $2,000 not by doing one big thing, but rather by doing a thousand small things. This
approach focuses on driving down the cost of health care through - Answer-process
innovation.
GiftBasket.com has successfully created a higher perceived value in the e-commerce
industry, though it offers the same products at slightly higher prices than the
competitors. This has been mainly attributed to the company's easy-to-navigate
website, simple return procedures, fast delivery, and cash on delivery option. Thus, the
value driver for GiftBasket.com is its - Answer-superior customer service.
All of the following are tools primarily used to achieve cost-leadership except - Answer-
offering products at a premium price.
While SMART Tech Inc. incurs $350 to manufacture a laptop, its competitor, Better
Electronics Inc., incurs $300. However, laptops of both the companies have been able
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