FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 5: Business-Level Strategy: Creating and Sustaining Competitive Advantages

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

Atlas Door created competitive advantages in overall low cost and differentiation by creating ___________ among value-chain activities.

A) substitutes
B) advantages
C) disadvantages
D) linkages

E) B) and D)
F) A) and C)

Correct Answer

verified

Show Answer

Question 52

True/False

Review LaterAdd Note

Review Later

An overall high-cost position enables a firm to achieve above-average returns despite strong competition.

A) True
B) False

Correct Answer

verified

Show Answer

Question 53

True/False

Review LaterAdd Note

A firm can attain an overall cost leadership position by using automated technology to reduce scrappage rates.

A risk for a firm that tries to attain both cost and differentiation advantages is that it can be stuck in the middle.An example of this is supermarkets because their _____ structure is _____ than discount retailers and customers do not value their products and services as being high-end such as those offered by Whole Foods.

If a car manufacturer focuses a lot on downstream activities such as warranty fulfillment and financing operations,but also considers the differentiation and cost of the cars themselves,the resulting strategy is likely to be a failed strategy.

The combination strategy of low-cost and differentiation provides lower prices and no differentiated attributes for customers.

By separating the value of the actual flight from the services associated with flying,airlines have greatly expanded the profit pool associated with flying.This combines the advantages of integrating overall low cost and differentiation strategies.

Underestimating expenses associated with coordinating value-creating activities in the extended value chain can be a result of ______ integration of cost leadership and differentiation.

The decline stage of the industry life cycle stage is inevitably followed by death.

To generate above average returns,a firm following an overall cost leadership position should not be concerned with attaining parity or proximity on the basis of differentiation relative to its peers.

The desktop computer is in the decline stage of the industry life cycle,but it is not dead because companies have found ways to improve the price-performance trade-off.

A potential pitfall of a focus strategy is that focusers can become too focused to satisfy buyer needs.

At one CVS drugstore,a four-pack of Energizer AA batteries was on sale at 2.99 USD compared with a Duracell four-pack at 4.59 USD.The Duracell market share dropped 2 percent in a recent two-year period,and its profits declined over 30 percent.Why did this happen?

Which of these statements regarding the industry life cycle is true?

When company performance severely erodes,no strategies exist that can help to reverse its situation and enhance its competitive position.

Which of the following is not a potential pitfall of a focus strategy?

In the __________ stage of the industry life cycle,the emphasis on product design is very high,the intensity of competition is low,and the market growth rate is low.

Company competitive advantages can be eroded by all of the following except

Tesco is saving 3 million USD a year alone in landfill taxes by simply sending its used cooking oil and chicken fat to be used to generate bioenergy rather than putting it in a landfill.This is an example of an overall cost leadership strategy because it

Which of the following is a risk (or potential pitfall) of cost leadership?