MGMT 449 EXAM 2 VERIFIED STUDY GUIDE
Cost driver - Answers - a factor that has a strong influence on a company's costs (can
be asset or activity-based)
Value driver - Answers - a factor that can have a strong differentiating effect
Low-cost provider - Answers - charging a lower price than rivals with similar caliber
product offerings
Broad differentiation - Answers - differentiating the firm's product offering from rivals'
with attributes that appeal to a broad spectrum of buyers
Focused low-cost - Answers - concentrating on a narrow price
Focused differentiation - Answers - concentrating on a narrow buyer segment by
meeting specific tastes and requirements of niche members
Best-cost provider - Answers - giving customers more value for the money by offering
upscale product attributes at a lower cost than rivals
Blue-ocean strategy - Answers - offers growth in revenues and profit by discovering or
inventing new industry segments that create an altogether new demand. A company
finds or invents a new industry. Ex: Ford invents assembly line and takes over auto
industry
First mover advantage - Answers - the advantage gained by the initial significant
occupant of a market segment
Fast follower - Answers - leapfrogging a first mover's products with more attractive next-
version products
Later mover - Answers - the advantage gained by not being one of the first entities to
move into a new market segment
Scope of the firm - Answers - Range of activities performed internally, breadth of its
products and services offerings, extent of the geographic market presence and its mix
of businesses, size of its competitive footprint in the market or industry
Horizontal scope - Answers - the range of product and service segments that a firm
serves within its focal market
Cost driver - Answers - a factor that has a strong influence on a company's costs (can
be asset or activity-based)
Value driver - Answers - a factor that can have a strong differentiating effect
Low-cost provider - Answers - charging a lower price than rivals with similar caliber
product offerings
Broad differentiation - Answers - differentiating the firm's product offering from rivals'
with attributes that appeal to a broad spectrum of buyers
Focused low-cost - Answers - concentrating on a narrow price
Focused differentiation - Answers - concentrating on a narrow buyer segment by
meeting specific tastes and requirements of niche members
Best-cost provider - Answers - giving customers more value for the money by offering
upscale product attributes at a lower cost than rivals
Blue-ocean strategy - Answers - offers growth in revenues and profit by discovering or
inventing new industry segments that create an altogether new demand. A company
finds or invents a new industry. Ex: Ford invents assembly line and takes over auto
industry
First mover advantage - Answers - the advantage gained by the initial significant
occupant of a market segment
Fast follower - Answers - leapfrogging a first mover's products with more attractive next-
version products
Later mover - Answers - the advantage gained by not being one of the first entities to
move into a new market segment
Scope of the firm - Answers - Range of activities performed internally, breadth of its
products and services offerings, extent of the geographic market presence and its mix
of businesses, size of its competitive footprint in the market or industry
Horizontal scope - Answers - the range of product and service segments that a firm
serves within its focal market
