SEVI 3013 PRACTICE SOLUTION TESTED
QUESTIONS WITH VERIFIED RESPONSE
GUIDE
●● Which of the following are pitfalls of using a focus strategy?
Answer: New competitors may enter lucrative niche markets.
Cost advantages for the focus segment may become eroded over time.
Companies may become too focused to satisfy buyer needs.
●● Companies can use combination strategies with technology to
Answer: link their value chain with the value chains of their customers
and suppliers
●● Michael Porter presented three ______ strategies to achieve
competitive advantage by overcoming the five forces.
Answer: generic
●● Research has found that companies that ______.
Answer: use multiple forms of competitive advantage (e.g., cost
leadership and differentiation) outperform those that do not
●● Which of the following can erode a company's competitive
advantage? (Check all that apply.)
, Answer: globalized trade
competitors' actions
technological advancements
●● Name the stages of the industry life cycle in the correct order, with
the first stage at the top.
Answer: Introduction
Growth
Maturity
Decline
●● Which of the following are characteristics of the growth stage?
Answer: growing competition
developing brand recognition
increasing sales revenues
financing complementary value-chain activities
●● Which of the following are goals of reverse positioning?
Answer: Allow a product to assume a new competitive position in its
category.
Move a product from maturity backward into a growth position.
QUESTIONS WITH VERIFIED RESPONSE
GUIDE
●● Which of the following are pitfalls of using a focus strategy?
Answer: New competitors may enter lucrative niche markets.
Cost advantages for the focus segment may become eroded over time.
Companies may become too focused to satisfy buyer needs.
●● Companies can use combination strategies with technology to
Answer: link their value chain with the value chains of their customers
and suppliers
●● Michael Porter presented three ______ strategies to achieve
competitive advantage by overcoming the five forces.
Answer: generic
●● Research has found that companies that ______.
Answer: use multiple forms of competitive advantage (e.g., cost
leadership and differentiation) outperform those that do not
●● Which of the following can erode a company's competitive
advantage? (Check all that apply.)
, Answer: globalized trade
competitors' actions
technological advancements
●● Name the stages of the industry life cycle in the correct order, with
the first stage at the top.
Answer: Introduction
Growth
Maturity
Decline
●● Which of the following are characteristics of the growth stage?
Answer: growing competition
developing brand recognition
increasing sales revenues
financing complementary value-chain activities
●● Which of the following are goals of reverse positioning?
Answer: Allow a product to assume a new competitive position in its
category.
Move a product from maturity backward into a growth position.
