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Capstone Final Actual Exam Newest Actual Exam With
Complete Questions And Correct Detailed Answers (Verified
Answers) |Already Graded A+
You are a consultant for Embraer and have determined that in the
airplane manufacturing market, their products are significantly
cheaper than the competitors, but they're still a little differentiated
from the competition. In addition, they seem to target the entire
airplane-purchasing market. The most accurate description of
Embraer's generic strategy (or lack thereof) is:
A. Stuck in the Middle
B. Differentiation
C. Overall Cost Leadership
D. Focused Low Cost
E. Focused Differentiation - ANSWERS--C. Overall Cost Leadership
**key words: significantly cheaper than the competitors
Overall Cost Leadership - ANSWERS---Competing on cost
-Target a broad market (everyone is your target) (Ex: Walmart)
-Economies of Scale
-Experience Curve
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Generic strategy that offers products or services with acceptable
quality and features to a broad set of customers at a low price
Economies of Scale - ANSWERS--A cost advantage created when a
company can produce a good or service at a lower per-unit price due
to producing the good or service in large quantities.
(spreading out fixed costs)
Experience Curve - ANSWERS--the decline in unit costs of production
as cumulative output increases
(based on knowledge and expertise)
Cost Leadership (Value Chain Elements) - ANSWERS---
Standardization
- Automation
- Learning
-Customer size
- Buyer density
- Scale advantage
Cost Leadership (Advantage) - ANSWERS--- High profits through
volume
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- Easier to survive price war (when market price decrease on a
product or service, cost leadership can survive longer)
Cost Leadership (Disadvantage) - ANSWERS--- Perception of quality
(Ex: Walmart's products are cheaper meaning the low quality)
-Relies on volume (economies of scale)
-Less adaptable
-Can be too focused on cost
Differentiation - ANSWERS--- Unique in ways that are valued by
customers
-Innovation becomes really important
-Investment of human capital (Ex: Southwest airline, who hires
individual that has great customer service skills)
A generic positioning that attempts to convince customers to pay a
premium price for its good or services by providing unique and
desirable features.
Differentiation (Value Chain Elements) - ANSWERS---Timeliness
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-Customizability
-Rapid deliverly
-High advertising quality
-High quality
Differentiation (Advantage) - ANSWERS--- Create brand loyalty
-High profit margins
Differentiation (Disadvantage) - ANSWERS---Danger of knock-offs (Ex:
China recreate other company's products and sell it in the market for
a lower price)
-sensitive to price wars
Draw Generic Business Strategies Visualized - ANSWERS--Four
squared
Top: Low Cost, Uniqueness
Left side: Broad target market (everyone is their target), Narrow
target market (particular target customer, such as age group)
Capstone Final Actual Exam Newest Actual Exam With
Complete Questions And Correct Detailed Answers (Verified
Answers) |Already Graded A+
You are a consultant for Embraer and have determined that in the
airplane manufacturing market, their products are significantly
cheaper than the competitors, but they're still a little differentiated
from the competition. In addition, they seem to target the entire
airplane-purchasing market. The most accurate description of
Embraer's generic strategy (or lack thereof) is:
A. Stuck in the Middle
B. Differentiation
C. Overall Cost Leadership
D. Focused Low Cost
E. Focused Differentiation - ANSWERS--C. Overall Cost Leadership
**key words: significantly cheaper than the competitors
Overall Cost Leadership - ANSWERS---Competing on cost
-Target a broad market (everyone is your target) (Ex: Walmart)
-Economies of Scale
-Experience Curve
,2|Page
Generic strategy that offers products or services with acceptable
quality and features to a broad set of customers at a low price
Economies of Scale - ANSWERS--A cost advantage created when a
company can produce a good or service at a lower per-unit price due
to producing the good or service in large quantities.
(spreading out fixed costs)
Experience Curve - ANSWERS--the decline in unit costs of production
as cumulative output increases
(based on knowledge and expertise)
Cost Leadership (Value Chain Elements) - ANSWERS---
Standardization
- Automation
- Learning
-Customer size
- Buyer density
- Scale advantage
Cost Leadership (Advantage) - ANSWERS--- High profits through
volume
,3|Page
- Easier to survive price war (when market price decrease on a
product or service, cost leadership can survive longer)
Cost Leadership (Disadvantage) - ANSWERS--- Perception of quality
(Ex: Walmart's products are cheaper meaning the low quality)
-Relies on volume (economies of scale)
-Less adaptable
-Can be too focused on cost
Differentiation - ANSWERS--- Unique in ways that are valued by
customers
-Innovation becomes really important
-Investment of human capital (Ex: Southwest airline, who hires
individual that has great customer service skills)
A generic positioning that attempts to convince customers to pay a
premium price for its good or services by providing unique and
desirable features.
Differentiation (Value Chain Elements) - ANSWERS---Timeliness
, 4|Page
-Customizability
-Rapid deliverly
-High advertising quality
-High quality
Differentiation (Advantage) - ANSWERS--- Create brand loyalty
-High profit margins
Differentiation (Disadvantage) - ANSWERS---Danger of knock-offs (Ex:
China recreate other company's products and sell it in the market for
a lower price)
-sensitive to price wars
Draw Generic Business Strategies Visualized - ANSWERS--Four
squared
Top: Low Cost, Uniqueness
Left side: Broad target market (everyone is their target), Narrow
target market (particular target customer, such as age group)
