Sevi 3013 Uark Exam 2 UPDATED Exam
Questions and CORRECT Answers
Porter's Generic Strategies - CORRECT ANSWER - cost leadership, differentiation, and focus
overall cost leadership - CORRECT ANSWER - a firm's generic strategy based on appeal to
the industrywide market using a competitive advantage based on low cost
Differentiation - CORRECT ANSWER - products/services that are unique and valued
focus strategy - CORRECT 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 - CORRECT ANSWER - Prestige or brand image
Quality
Technology
Innovation
Features
Customer service
Dealer network
cost-focus strategy - CORRECT ANSWER - Creates a cost advantage in its target segment
Exploits differences in cost behavior
differentiation focus - CORRECT ANSWER - Differentiates itself in its target market
Exploits the special needs of buyers
, Industry Life Cycle - CORRECT ANSWER - the stages of introduction, growth, maturity, and
decline that typically occur over the life of an industry
introduction stage - CORRECT 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 - CORRECT ANSWER - - Characterized by strong increases in sales
- Attractive to potential competitors
- When firms can build brand recognition
maturity stage - CORRECT ANSWER - Aggregate industry demand slows
Market becomes saturated, few new adopters
Direct competition becomes predominant
Marginal competitors begin to exit
decline stage - CORRECT ANSWER - -Industry sales and profits begin to fall
-Price competition increases
-Industry consolidation occurs
strategies for decline stage - CORRECT ANSWER - -Maintaining
-Harvesting
-Exiting the market
-Consolidation
diversification strategy must create value for shareholders through - CORRECT ANSWER -
mergers and acquisitions
Questions and CORRECT Answers
Porter's Generic Strategies - CORRECT ANSWER - cost leadership, differentiation, and focus
overall cost leadership - CORRECT ANSWER - a firm's generic strategy based on appeal to
the industrywide market using a competitive advantage based on low cost
Differentiation - CORRECT ANSWER - products/services that are unique and valued
focus strategy - CORRECT 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 - CORRECT ANSWER - Prestige or brand image
Quality
Technology
Innovation
Features
Customer service
Dealer network
cost-focus strategy - CORRECT ANSWER - Creates a cost advantage in its target segment
Exploits differences in cost behavior
differentiation focus - CORRECT ANSWER - Differentiates itself in its target market
Exploits the special needs of buyers
, Industry Life Cycle - CORRECT ANSWER - the stages of introduction, growth, maturity, and
decline that typically occur over the life of an industry
introduction stage - CORRECT 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 - CORRECT ANSWER - - Characterized by strong increases in sales
- Attractive to potential competitors
- When firms can build brand recognition
maturity stage - CORRECT ANSWER - Aggregate industry demand slows
Market becomes saturated, few new adopters
Direct competition becomes predominant
Marginal competitors begin to exit
decline stage - CORRECT ANSWER - -Industry sales and profits begin to fall
-Price competition increases
-Industry consolidation occurs
strategies for decline stage - CORRECT ANSWER - -Maintaining
-Harvesting
-Exiting the market
-Consolidation
diversification strategy must create value for shareholders through - CORRECT ANSWER -
mergers and acquisitions
