A company's competitive strategy is an effort to do which of the following?
ward off competitors
achieve competitive advantage
please customers
In gaining a cost advantage over competitors, a low-cost provider must offer
services and features that buyers think are essential.
One of the most effective ways to manage a value chain efficiently is to
find innovative ways to keep costs down.
Which companies are noted for their successful use of low-cost provider
strategies?
Walmart
Bic
Uber
Which of the following are good opportunities for a company to pursue a low-
cost provider strategy?
when price competition among competitors is vigorous
when rivals offer virtually identical products
when consumers use a product offered by rival companies in the same way
Which of the following are types of competitive strategies?
broad low-cost
broad differentiation
focused low-cost
Which of the following is a typical course of action for companies that pursue
low-cost leadership?
Offering lower prices than their rivals
Low-cost providers need to be especially careful
not
to make the mistake of
cutting prices too aggressively.
A factor that has a strong influence on a company's costs is called
a cost driver.
Which of the following are results of successful differentiation strategies
adopted by companies? (Check all that apply.)
An improvement in buyer loyalty
An increase unit sales
Although successful low-cost providers continually look for ways to save
money, they also understand the importance of spending money on
resources that further eliminate costs.
A low-cost provider can use low prices to
persuade potential customers to switch brands.
Which strategies are recommended for enhancing differentiation based on
value drivers?
Pursue quality improvement.
Strive to achieve technological advances.
Create product features that appeal to a wide range of buyers.
What pitfalls should low-cost providers avoid?
relying on a cost-reduction approach that is easy to copy
fixating on cost reduction to the exclusion of product features
Companies can provide superior customer value by offering products with
features that
are cheaper for a consumer to use.
Companies use differentiation strategies when consumers' preferences are
.
too diverse for a standardized product offering
In a market where buyer preferences are diverse, how can industry rivals
differentiate their products?
Offer products that appeal to specific buyers.
Improving customer service or adding extra services are ways to manage the value
chain to create product
Blank 1 of 1.
Blank 1: differentiation, differentitation, or differential
True or false: If a company's efforts to differentiate its products are met with
consumer disinterest, the company puts itself at risk for lower profits.
True
What can a company do to make its products more economical for
customers?
Increase product reliability.
Incorporate energy-efficient features.
Which companies have a well-defined market niche?
Tesla Motors (electric cars)
Fox News Channel (cable television journalism)
Blue Nile (online jewelry)
Hotels differentiate their services by offering
an extensive range of guest amenities.
dining in the hotel.
larger rooms.
To achieve a cost advantage in a market niche, companies must
use cost drivers to keep production costs low.
omit nonessential steps.
A differentiation strategy might fail in which situations?
when consumers see little value in the unique features of a product
when products and services can be quickly imitated
Whole Foods Market employs a focused differentiation-based strategy by
offering what products?
locally grown foods
organic, minimally processed foods
high standards for food quality
Focused strategies differ from low-cost provider and differentiation strategies
by
concentrating attention on a market niche.
How do companies with a focused, low-cost strategy strive to secure a
competitive advantage?
serving niche market customers at a lower cost than rivals
Which situations make it more likely that a focused differentiation strategy
will be successful?
-the industry has many different niches
-industry leaders choose not to compete in the niche
-few rivals attempt to specialize in the same niche
Which company offers premium products and services to upscale buyers?
Rolls-Royce
Companies that pursue a focused differentiation strategy are at risk from
rivals with more brands or great expertise and capabilities.
Focusing on a single market niche is an attractive strategy for what type of
firm?
small companies that lack the resources to pursue a broader customer base
Best-cost provider strategies are intended to provide value-conscious buyers
with
a quality product at a relatively low price.
A company that employs a best-cost provider strategy is vulnerable to which
of the following?
companies that employ a high-end differentiation strategy
companies that employ a low-cost strategy
Large companies often employ multibrand strategies to better compete with
companies that employ a focused differentiation strategy.
To succeed with a low-cost provider strategy, what must a company have?
the resources to keep costs lower than its rivals
What are the three approaches that companies can use to gain a competitive
advantage?
differentiation
best-cost
low-cost
A company that employs a best-cost strategy achieves profitability by
adding premium features to its products at a lower cost than rivals.
What must a best-cost provider do to remain competitive?
Offer consumers a more attractive value proposition.
A company that pursues a focused strategy must have the resources to
.
satisfy the needs of its niche market.
Match the type of strategy (on the left) with its approach to gaining a
competitive advantage (on the right).
Low-cost
-------
Cost advantage over rivals
Differentiation
------------
Greater perceived value for consumers
Best-cost
------------
Better cost and value than the average rival
