B it is the industry's acknowledged technology leader. Its efforts to change its position on the industry's strategic group map Answer:a The objective of competitive strategy is to A. A broad differentiation strategy improves profitability when A. There are three main ways to achieve this. C there are many ways to achieve product differentiation that have value to buyers. To overcome disadvantages of small production volumes that limit scale economies and low production cots.
A differentiation strategy is known as a broad scope strategy because the business is hoping that their business differentiation strategy, will appeal to a broad section of the market. Recommended Reading Porter, Michael E. E price competition is vigorous. Market development is concerned with taking existing products into totally new markets. Product design is important to companies that use cutting-edge technology.
Lean production is about getting rid of waste and therefore, utilizing fewer materials, labor, time and space which in turn decreases costs. A Verizon office building in Irvington, New Jersey in 2010. C it has greater financial resources than its rivals. B tries to have the best cost as compared to rivals for each activity in the industry's value chain. This was sometimes referred to as the hole in the middle problem. E it has some type of edge over rivals in attracting customers and coping with competitive forces. D one of the best-known and most respected brand names in the industry.
Delivering value to customers via competencies and competitive capabilities that rivals don't have or can't afford to match B. E greatly reducing the strong bargaining power of key suppliers. E identify and concentrate on those differentiating features that are inexpensive to incorporate. Which one of the following is not a strategically beneficial reason why a company may enter into strategic partnerships or cooperative arrangements with key suppliers, distributors, or makers of complementary products? Unit sales increase and the extra price the product commands exceeds the added costs of achieving the differentiation Answer:c Using a broad differentiation strategy to produce an attractive competitive advantage is least likely to be based on A. Because this strategy requires a large volume, it is better suited to large, multinational companies than to small businesses. Some risks of focus strategies include imitation and changes in the target segments. Perhaps other cost competitor businesses pay their people at the minimum wage while your business has found a way to pay people a livable wage.
There are five basic defensive strategies; retaliation, commitment, government intervention, strategic flexibility, and avoidance. How does this affect the choices your make in your job? Specify the qualitative or quantitative values of those indicators that would describe goal achievement. C with a product offering carefully designed to appeal to the unique preferences and needs of a narrow, well-defined group of buyers. The most successful companies create an advantage that is unique just to the company and not easily copied. Equity alliances are the same as non-equity ones except that one rival firm or the other or both make an equity investment in the arrangement. The book concludes with an appendix on how to conduct an industry analysis.
Business-level strategy is concerned with a firm's position in an industry, relative to competitors and to the five forces of competition. The company also offers a range of third-party solutions. Porter claimed that a company must only choose one of the three or risk that the business would waste precious resources. In manufacturing, it will involve production of high volumes of output. There are many different ways to get a competitive advantage in the marketplace, and many businesses will focus on a few tried and true methods of gaining a leg up on the competition. Research writings of Davis 1984 cited by Prajogo 2007, p.
Thus the customer realizes value based both on product features and a low price. Rolex is known for superior products, and Ritz-Carlton hotels are known for their unsurpassed customer service. E doing a better job than rivals of adopting the best operating practices. B most buyers have the same needs and use the product in the same ways. Cost Leadership In cost leadership, a firm sets out to become the low cost producer in its industry.
If a company offers a unique product or service, it is harder to maintain an edge in the market based on price alone. Buyers seldom will pay for value they don't perceive, no matter how real the value of the differentiating extras may be C. Companies that use focused strategies may be able serve the smaller segment e. Decide on the indicators that you can utilize to measure goal performance. Sell direct to users of their product or service and eliminate use of wholesale and retail intermediaries D. Buyers have a low degree of bargaining power and purchase the product frequently E.
Delivering value to customers via competencies and competitive capabilities that rivals don't have or can't afford to match E. Buyer needs and uses of the product are diverse C. They claim that a low cost strategy is rarely able to provide a. Identifying an attribute or characteristic that makes your product or service unique is the driving factor in a differentiation strategy. What Are the Five Generic Competitive Strategies? Companies may also receive government subsidies, which help to pass on lower costs on to their customers. Concentrating on the primary activities portion of the value chain and outsourcing all support activities B. Going all out to use its cost advantage to capture a dominant share of the market Answer:b The major avenues for achieving a cost advantage over rivals include A.