MGT 499: EXAM 2 COMPREHENSIVE EXAM QUESTIONS
WITH DETAILED VERIFIED AND 100% ACCURATE
ANSWERS BRAND NEW EXAM ALREADY GRADED (A+
PASS)
What is business-level strategy? Ans✓✓✓ To achieve competitive
advantage in a single product market
"How will we compete to gain & sustain competitive advantage?"
Ans✓✓✓ 1. Who: which customer segments will we serve?
2. What: Customer needs, wishes, and desires will we satisfy?
3. Why: do we want to satisfy them?
4. How: will we satisfy our consumers needs?
strategic trade-offs Ans✓✓✓ Choices between a cost or value position.
Tension between -
1. value creation
2. pressure to keep cost in check
,Such choices are necessary because higher value creation tends to
generate higher cost.
generic business strategy Ans✓✓✓ a strategy that can be adopted by any
firm, regardless of the product or industry involved, to achieve a
competitive advantage.
-differentiation
- cost leadership
Differentiation Ans✓✓✓ 1. Seeks to create higher value than
competitors
2. Offers products or services with unique features
3. Keeps the firm's cost structure as low as possible
Charges higher prices
Focused Differentiation Ans✓✓✓ Ex: Mont Blanc: exquisite pens at
several hundred dollars
Focused Cost Leadership Ans✓✓✓ Ex: BIC: disposable pens and
lighters at low cost
,Scope of competition Ans✓✓✓ the size - narrow or broad - of the
market in which a firm chooses to compete
Differentiation Strategy Ans✓✓✓ 1. Unique features that increase value
of goods and services (add value to products and services)
2.Consumers are willing to pay a higher price (response to customer
preferences)(can increase cost: Additional R&D, innovation needed, but
customer willing to pay premium)
3.The focus of competition
a. unique product features/ service
b. new product launches
c. Marketing and promotions
Competitive advantage achieved when: Ans✓✓✓ Value - Cost >
competitors
Three Drivers That Can Increase Value Ans✓✓✓ 1. product features
2. customer service
3. complements
product features Ans✓✓✓ -- Increases perceived value
, -- Turns commodity products into differentiated products
-- Strong R&D capabilities are often needed
customer service Ans✓✓✓ -increases pervieved value
Example: Zappos
-offers free shipping both ways
- they do not outsource customer service
-dont use pre-determined scripts for service
EX: Trader Joes
- stores stock local product as request by the community
complements Ans✓✓✓ -increase percieved value
-consumed in tandem
EX: AT&T Uverse
--bundles internet access, phone, and tv services
EX: DVR
--enables recording of TV shows
WITH DETAILED VERIFIED AND 100% ACCURATE
ANSWERS BRAND NEW EXAM ALREADY GRADED (A+
PASS)
What is business-level strategy? Ans✓✓✓ To achieve competitive
advantage in a single product market
"How will we compete to gain & sustain competitive advantage?"
Ans✓✓✓ 1. Who: which customer segments will we serve?
2. What: Customer needs, wishes, and desires will we satisfy?
3. Why: do we want to satisfy them?
4. How: will we satisfy our consumers needs?
strategic trade-offs Ans✓✓✓ Choices between a cost or value position.
Tension between -
1. value creation
2. pressure to keep cost in check
,Such choices are necessary because higher value creation tends to
generate higher cost.
generic business strategy Ans✓✓✓ a strategy that can be adopted by any
firm, regardless of the product or industry involved, to achieve a
competitive advantage.
-differentiation
- cost leadership
Differentiation Ans✓✓✓ 1. Seeks to create higher value than
competitors
2. Offers products or services with unique features
3. Keeps the firm's cost structure as low as possible
Charges higher prices
Focused Differentiation Ans✓✓✓ Ex: Mont Blanc: exquisite pens at
several hundred dollars
Focused Cost Leadership Ans✓✓✓ Ex: BIC: disposable pens and
lighters at low cost
,Scope of competition Ans✓✓✓ the size - narrow or broad - of the
market in which a firm chooses to compete
Differentiation Strategy Ans✓✓✓ 1. Unique features that increase value
of goods and services (add value to products and services)
2.Consumers are willing to pay a higher price (response to customer
preferences)(can increase cost: Additional R&D, innovation needed, but
customer willing to pay premium)
3.The focus of competition
a. unique product features/ service
b. new product launches
c. Marketing and promotions
Competitive advantage achieved when: Ans✓✓✓ Value - Cost >
competitors
Three Drivers That Can Increase Value Ans✓✓✓ 1. product features
2. customer service
3. complements
product features Ans✓✓✓ -- Increases perceived value
, -- Turns commodity products into differentiated products
-- Strong R&D capabilities are often needed
customer service Ans✓✓✓ -increases pervieved value
Example: Zappos
-offers free shipping both ways
- they do not outsource customer service
-dont use pre-determined scripts for service
EX: Trader Joes
- stores stock local product as request by the community
complements Ans✓✓✓ -increase percieved value
-consumed in tandem
EX: AT&T Uverse
--bundles internet access, phone, and tv services
EX: DVR
--enables recording of TV shows
