GEB 4890 1 STUDY SHEET 2026 TEST PAPER
QUESTIONS AND SOLUTIONS
GUARANTEED TO PASS
●● Define competitive advantage and explain its relationship to
competitive strategy.
Answer: COMPETITIVE ADVANTAGE → a strategy that no one else
in the industry has been able to formulate & implement
-Main goal of competitive strategy is to build a competitive advantage,
customer loyalty, and outcompete rivals
-Can use any one of the 5 competitive strategies to build a competitive
advantage w/in a particular industry
●● Identify, define, and describe the 5 generic competitive strategies.
Answer: ** strategies differ from type of competitive advantage being
pursued and market target**
LOW COST PROVIDER STRATEGY → provide goods or services w/
features acceptable to customers at lowest price compared to competitors
DIFFERENTIATION STRATEGY → provide products that customers
perceive as being unique in ways that are important to them while still
going after a broad spectrum of buyers
, BEST-COST PROVIDER STRATEGY → a hybrid or mix of low cost
and differentiation strategies
FOCUS STRATEGY → concentrate attention on a much smaller
segment or niche w/in the larger market while still going after either a
low-cost or differentiation advantage
●● Describe the low cost provider strategy and explain how it can be
used to achieve a competitive advantage.
Answer: LOW COST PROVIDER STRATEGY → provide goods or
services w/ features acceptable to customers at lowest price compared to
competitors
-Appeal to a broad spectrum of buyers
-Produce good products w/ few frills
-Much achieve competitive advantage based on cost
●● Identify and describe the 2 major avenues for achieving a cost
advantage in an industry.
Answer: 1. Perform value chain activities more cost-effectively than
rivals (cost-efficient management of value chain)
QUESTIONS AND SOLUTIONS
GUARANTEED TO PASS
●● Define competitive advantage and explain its relationship to
competitive strategy.
Answer: COMPETITIVE ADVANTAGE → a strategy that no one else
in the industry has been able to formulate & implement
-Main goal of competitive strategy is to build a competitive advantage,
customer loyalty, and outcompete rivals
-Can use any one of the 5 competitive strategies to build a competitive
advantage w/in a particular industry
●● Identify, define, and describe the 5 generic competitive strategies.
Answer: ** strategies differ from type of competitive advantage being
pursued and market target**
LOW COST PROVIDER STRATEGY → provide goods or services w/
features acceptable to customers at lowest price compared to competitors
DIFFERENTIATION STRATEGY → provide products that customers
perceive as being unique in ways that are important to them while still
going after a broad spectrum of buyers
, BEST-COST PROVIDER STRATEGY → a hybrid or mix of low cost
and differentiation strategies
FOCUS STRATEGY → concentrate attention on a much smaller
segment or niche w/in the larger market while still going after either a
low-cost or differentiation advantage
●● Describe the low cost provider strategy and explain how it can be
used to achieve a competitive advantage.
Answer: LOW COST PROVIDER STRATEGY → provide goods or
services w/ features acceptable to customers at lowest price compared to
competitors
-Appeal to a broad spectrum of buyers
-Produce good products w/ few frills
-Much achieve competitive advantage based on cost
●● Identify and describe the 2 major avenues for achieving a cost
advantage in an industry.
Answer: 1. Perform value chain activities more cost-effectively than
rivals (cost-efficient management of value chain)
