Test Bank – Essentials of Strategic Management:
The Quest for Competitive Advantage |
Chapter 5
The objective of competitive strategy is to
provide detail to the company’s business model.
,2. Award: 10.00 po ints
build competitive advantage in the marketplace by giving buyers superior value relative to the
offerings of rival sellers.
get the company into the best strategic group and then dominate it.
establish a competitively powerful value chain.
grow revenues at a faster annual rate than rivals are able to grow their revenues.
A company’s competitive strategy deals exclusively with the specifics of management’s game plan for
competing successfully—its specific efforts to please customers, strengthen its market position, counter
the maneuvers of rivals, respond to shifting market conditions, and achieve a particular competitive
advantage.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 05-01
Understand what distinguishes each of the
five generic strategies and why some of
these strategies work better in certain kinds
of industry and competitive conditions than
in others.
While there are many routes to competitive advantage, they all involve
building a brand name image that buyers trust.
delivering superior value to a broad or narrow market of buyers in ways rivals cannot readily match.
achieving lower costs than rivals and becoming the industry’s sales and market share leader.
,3. Award: 10.00 po ints
finding effective and efficient ways to strengthen the company’s competitive assets and to reduce
its competitive liabilities.
getting in the best strategic group and dominating it.
The two biggest factors that distinguish one competitive strategy from another boil down to: (1) whether a
company’s market target is broad or narrow and (2) whether the company is pursuing a competitive
advantage linked to lower costs or differentiation, thereby delivering superior value to buyers.
References
Multiple Choice Difficulty: 2 Medium Learning
Objective: 05-01 Understand what
distinguishes each of the five generic
strategies and why some of these strategies
work better in certain kinds of industry and
competitive conditions than in others.
A company’s competitive strategy deals with
management’s game plan for securing a competitive advantage relative to rivals.
what its strategy will be in such functional areas as R&D, production, sales and marketing,
distribution, finance and accounting, and so on.
its efforts to change its position on the industry’s strategic group map.
its plans for entering into strategic alliances, utilizing mergers or acquisitions to strengthen its
market position, outsourcing some in-house activities to outside specialists, and integrating
forward or backward.
, 4. Award: 10.00 po ints
tweaking the value chain drivers to make them more cost competitive with rivals.
A company’s competitive strategy deals exclusively with the specifics of management’s game plan for
competing successfully—its specific efforts to please customers, strengthen its market position, counter
the maneuvers of rivals, respond to shifting market conditions, and achieve a particular competitive
advantage.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 05-01
Understand what distinguishes each of the
five generic strategies and why some of
these strategies work better in certain kinds
of industry and competitive conditions than
in others.
A company’s competitive strategy should
be well attuned to doing an outstanding job of satisfying the needs and expectations of niche
buyers.
support its objective to become at least an average performer within its industry.
ensure it is designed to concentrate on a small range of products so it can react quickly to
competitive moves.
be well matched to its resources and capabilities in order to incorporate standard attributes into its
product offering.
The Quest for Competitive Advantage |
Chapter 5
The objective of competitive strategy is to
provide detail to the company’s business model.
,2. Award: 10.00 po ints
build competitive advantage in the marketplace by giving buyers superior value relative to the
offerings of rival sellers.
get the company into the best strategic group and then dominate it.
establish a competitively powerful value chain.
grow revenues at a faster annual rate than rivals are able to grow their revenues.
A company’s competitive strategy deals exclusively with the specifics of management’s game plan for
competing successfully—its specific efforts to please customers, strengthen its market position, counter
the maneuvers of rivals, respond to shifting market conditions, and achieve a particular competitive
advantage.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 05-01
Understand what distinguishes each of the
five generic strategies and why some of
these strategies work better in certain kinds
of industry and competitive conditions than
in others.
While there are many routes to competitive advantage, they all involve
building a brand name image that buyers trust.
delivering superior value to a broad or narrow market of buyers in ways rivals cannot readily match.
achieving lower costs than rivals and becoming the industry’s sales and market share leader.
,3. Award: 10.00 po ints
finding effective and efficient ways to strengthen the company’s competitive assets and to reduce
its competitive liabilities.
getting in the best strategic group and dominating it.
The two biggest factors that distinguish one competitive strategy from another boil down to: (1) whether a
company’s market target is broad or narrow and (2) whether the company is pursuing a competitive
advantage linked to lower costs or differentiation, thereby delivering superior value to buyers.
References
Multiple Choice Difficulty: 2 Medium Learning
Objective: 05-01 Understand what
distinguishes each of the five generic
strategies and why some of these strategies
work better in certain kinds of industry and
competitive conditions than in others.
A company’s competitive strategy deals with
management’s game plan for securing a competitive advantage relative to rivals.
what its strategy will be in such functional areas as R&D, production, sales and marketing,
distribution, finance and accounting, and so on.
its efforts to change its position on the industry’s strategic group map.
its plans for entering into strategic alliances, utilizing mergers or acquisitions to strengthen its
market position, outsourcing some in-house activities to outside specialists, and integrating
forward or backward.
, 4. Award: 10.00 po ints
tweaking the value chain drivers to make them more cost competitive with rivals.
A company’s competitive strategy deals exclusively with the specifics of management’s game plan for
competing successfully—its specific efforts to please customers, strengthen its market position, counter
the maneuvers of rivals, respond to shifting market conditions, and achieve a particular competitive
advantage.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 05-01
Understand what distinguishes each of the
five generic strategies and why some of
these strategies work better in certain kinds
of industry and competitive conditions than
in others.
A company’s competitive strategy should
be well attuned to doing an outstanding job of satisfying the needs and expectations of niche
buyers.
support its objective to become at least an average performer within its industry.
ensure it is designed to concentrate on a small range of products so it can react quickly to
competitive moves.
be well matched to its resources and capabilities in order to incorporate standard attributes into its
product offering.
