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Competitive Strategy
LATEST EXAM READINESS
GUIDE
Q&S
©2024/2025
,1. Which of the following is NOT a feature of Porter's Five
Forces model?
- A) Threat of new entrants
- B) Bargaining power of suppliers
- C) Internal rivalry among employees
- D) Threat of substitute products
- Answer: C) Internal rivalry among employees
- Rationale: Porter's Five Forces focuses on external
industry pressures, not internal company dynamics.
2. What is the primary objective of a company's value
chain analysis?
- A) To identify cost-cutting measures
- B) To streamline manufacturing processes
- C) To identify the activities that create the most value for
customers
- D) To optimize employee benefits
- Answer: C) To identify the activities that create the
most value for customers
- Rationale: Value chain analysis aims to enhance value
creation in relevant activities.
3. In the context of a Blue Ocean Strategy, what does a
'blue ocean' represent?
- A) A market that is over-saturated with competition
- B) A market space that is unexplored and uncontested
- C) A company with a large financial reserve
- D) A geographic region with numerous business
opportunities
- Answer: B) A market space that is unexplored and
uncontested
©2024/2025
, - Rationale: Blue Ocean Strategy targets creating new
market spaces, eliminating competition.
### Fill in the Blank Questions
4. The concept of _______________ involves analyzing
the tactics and strategies of competitors to improve a firm's
own competitive advantage.
- Answer: Competitive Intelligence
- Rationale: Competitive intelligence focuses on external
insights for strategic advantage.
5. The practice of _______________ refers to a firm
expanding its operations into areas that are at different
stage levels within the same production path.
- Answer: Vertical Integration
- Rationale: Vertical integration involves upstream or
downstream expansion within the supply chain.
### True/False Questions
6. A differentiation strategy emphasizes cost leadership
and operational efficiency over product uniqueness.
- Answer: False
- Rationale: A differentiation strategy focuses on creating
unique product attributes to stand out from competition.
7. A focus strategy can be implemented in alignment with
both cost leadership and differentiation strategies.
- Answer: True
- Rationale: Focus strategies can target narrow markets
through cost advantages or differentiated products.
©2024/2025
Competitive Strategy
LATEST EXAM READINESS
GUIDE
Q&S
©2024/2025
,1. Which of the following is NOT a feature of Porter's Five
Forces model?
- A) Threat of new entrants
- B) Bargaining power of suppliers
- C) Internal rivalry among employees
- D) Threat of substitute products
- Answer: C) Internal rivalry among employees
- Rationale: Porter's Five Forces focuses on external
industry pressures, not internal company dynamics.
2. What is the primary objective of a company's value
chain analysis?
- A) To identify cost-cutting measures
- B) To streamline manufacturing processes
- C) To identify the activities that create the most value for
customers
- D) To optimize employee benefits
- Answer: C) To identify the activities that create the
most value for customers
- Rationale: Value chain analysis aims to enhance value
creation in relevant activities.
3. In the context of a Blue Ocean Strategy, what does a
'blue ocean' represent?
- A) A market that is over-saturated with competition
- B) A market space that is unexplored and uncontested
- C) A company with a large financial reserve
- D) A geographic region with numerous business
opportunities
- Answer: B) A market space that is unexplored and
uncontested
©2024/2025
, - Rationale: Blue Ocean Strategy targets creating new
market spaces, eliminating competition.
### Fill in the Blank Questions
4. The concept of _______________ involves analyzing
the tactics and strategies of competitors to improve a firm's
own competitive advantage.
- Answer: Competitive Intelligence
- Rationale: Competitive intelligence focuses on external
insights for strategic advantage.
5. The practice of _______________ refers to a firm
expanding its operations into areas that are at different
stage levels within the same production path.
- Answer: Vertical Integration
- Rationale: Vertical integration involves upstream or
downstream expansion within the supply chain.
### True/False Questions
6. A differentiation strategy emphasizes cost leadership
and operational efficiency over product uniqueness.
- Answer: False
- Rationale: A differentiation strategy focuses on creating
unique product attributes to stand out from competition.
7. A focus strategy can be implemented in alignment with
both cost leadership and differentiation strategies.
- Answer: True
- Rationale: Focus strategies can target narrow markets
through cost advantages or differentiated products.
©2024/2025
