SEVI 3013 FINAL PAPER QUESTIONS AND
ACCURATE ANSWERS COMPLETE
PREPARATION KIT
●● overall cost leadership
Answer: a firm's generic strategy based on appeal to the industrywide
market using a competitive advantage based on low cost
●● Differentiation
Answer: products/services that are unique and valued
●● focus strategy
Answer: the positioning strategy of using cost leadership or
differentiation to produce a specialized product or service for a limited,
specially targeted group of customers in a particular geographic region
or market segment
●● differentiation strategy forms
Answer: Prestige or brand image
Quality
Technology
Innovation
Features
,Customer service
Dealer network
●● cost-focus strategy
Answer: Creates a cost advantage in its target segment
Exploits differences in cost behavior
●● differentiation focus
Answer: Differentiates itself in its target market
Exploits the special needs of buyers
●● Industry Life Cycle
Answer: the stages of introduction, growth, maturity, and decline that
typically occur over the life of an industry
●● introduction stage
Answer: - Products are unfamiliar to consumers
- Market segments are not well-defined
- Product features are not clearly specified
- Competition tends to be limited
●● growth stage
, Answer: - Characterized by strong increases in sales
- Attractive to potential competitors
- When firms can build brand recognition
●● maturity stage
Answer: Aggregate industry demand slows
Market becomes saturated, few new adopters
Direct competition becomes predominant
Marginal competitors begin to exit
●● decline stage
Answer: -Industry sales and profits begin to fall
-Price competition increases
-Industry consolidation occurs
●● strategies for decline stage
Answer: -Maintaining
-Harvesting
-Exiting the market
-Consolidation
●● diversification strategy must create value for shareholders through
ACCURATE ANSWERS COMPLETE
PREPARATION KIT
●● overall cost leadership
Answer: a firm's generic strategy based on appeal to the industrywide
market using a competitive advantage based on low cost
●● Differentiation
Answer: products/services that are unique and valued
●● focus strategy
Answer: the positioning strategy of using cost leadership or
differentiation to produce a specialized product or service for a limited,
specially targeted group of customers in a particular geographic region
or market segment
●● differentiation strategy forms
Answer: Prestige or brand image
Quality
Technology
Innovation
Features
,Customer service
Dealer network
●● cost-focus strategy
Answer: Creates a cost advantage in its target segment
Exploits differences in cost behavior
●● differentiation focus
Answer: Differentiates itself in its target market
Exploits the special needs of buyers
●● Industry Life Cycle
Answer: the stages of introduction, growth, maturity, and decline that
typically occur over the life of an industry
●● introduction stage
Answer: - Products are unfamiliar to consumers
- Market segments are not well-defined
- Product features are not clearly specified
- Competition tends to be limited
●● growth stage
, Answer: - Characterized by strong increases in sales
- Attractive to potential competitors
- When firms can build brand recognition
●● maturity stage
Answer: Aggregate industry demand slows
Market becomes saturated, few new adopters
Direct competition becomes predominant
Marginal competitors begin to exit
●● decline stage
Answer: -Industry sales and profits begin to fall
-Price competition increases
-Industry consolidation occurs
●● strategies for decline stage
Answer: -Maintaining
-Harvesting
-Exiting the market
-Consolidation
●● diversification strategy must create value for shareholders through
