STR 581: Ch 5: The five generic competitive strategies Questions & Answers Solved 100% Correct!!

Which of the following are types of competitive strategies? - Answer-1. broad low-cost 2. broad differentiation 3. focused low-cost 4. focused differentiation 5. best-cost Which of the following is a typical course of action for companies that pursue low-cost leadership? - Answer-offering lower prices than their rivals Attempts to use low-cost advantage to attack rival companies with lower product prices can result in which of the following - Answer-1. retaliatory price cuts 2. a price war among several rivals 3. reduced profits A factor that has a strong influence on a company's costs is called _____. - Answer-a cost driver Switching to a lower-cost item to save money is an example of _____. - Answer-cost-efficient management A company's competitive strategy is an effort to do which of the following? - Answer-1. ward off competitors 2. please customers 3. achieve competitive advantage What can a business use to reduce production costs for a cost-advantage strategy? - Answer-1. automatic robotic technology 2. computer-assisted design (CAD)In gaining a cost advantage over competitors, a low-cost provider must offer ____. - Answer-services and features that buyers think are essential In the management of value chain activities, what would most likely increase worker productivity? - Answer-offering incentives What option do companies have for translating a low-cost advantage into profit performance? - Answerunderpricing competitors One of the most effective ways to manage a value chain efficiency is to ____. - Answer-find innovative ways to keep costs down A company with a value chain system that sells directly to consumers is able to _____. - Answer-bypass the costs of distributors Which methods help a company use cost drivers effectively? - Answer-1. operating facilities at full capacity ring all available economies of scale 3. improving supply chain efficiency Companies can reduce costs associated with a value chain system by _____ - Answer-eliminating unnecessary steps Which of the following are ways by which online systems and advanced softwares can help a company achieve operating efficiency? - Answer-1. reducing parts inventories 2. cutting production times Which of the following are likely to be the results of developing a strong company culture? - Answer-1. it encourages continuous improvement from employees 2. it increases workforce productivityNucor Corporation eliminates many steps in the steel manufacturing process by using what equipment? - Answer-electric arc furnaces Attempts to use low cost advantage to attack rival companies with lower product prices can result in which pd the following? - Answer-1. reduced profits 2. retaliatory price cuts 3. a price war among several rivals Which of the following allow a company to sell directly to customers effectively? - Answer-1. maintaining a direct sales staff 2. conducting sales through a company website To reduce costs, Southwest Airlines dose not offer which amenities? - Answer-1. first class service 2. assigned seating 3. baggage transfer between airlines What can companies reduce by positioning themselves near their suppliers? - Answer-1. shipping costs 2. materials handling What can a business use to reduce production costs for a cost-advantage strategy? - Answer-1. automatic robotic technology 2. computer assisted design How does Nucor Corporation produce steel at a far lower cost than traditional steel mills? - Answer-1. lower operating costs 2. a lower capital investment 3. a smaller workforce Which companies are noted for their successful use of low-cost provider strategies? - Answer-1. Bic 2. Walmart3. Uber To increase the number of flights per day, Southwest Airlines _____. - Answer-decreased turnaround time at the gates Which of the following are good opportunities for a company to pursue a low-cost provider strategy? - Answer-1. when consumers use a product offered by rival companies in the same way 2. when price competition among competitors is vigorous 3. when rivals offer virtually identical products Companies can reduce costs associated with a value chain system by ____. - Answer-eliminating unnecessary steps What pitfalls should low-cost providers avoid? - Answer-1. relying on a cost reduction approach that is easy to copy 2. fixating on cost reduction to the exclusion of product features Which of the following are ways by which online systems and advanced software can help a company achieve operating efficiency? - Answer-1. cutting production times 2. reducing parts inventories A low cost provider strategy is risky if a competitor ____. - Answer-discovers a lower cost value approach Although successful low cost providers continually look for ways to save money, they also understand the importance of spending money on _____. - Answer-resources that further eliminate costs Companies use differentiation strategies when consumers' preferences are _____. - Answer-too diverse for a standardized product offering A low cost provider can use low prices to ____. - Answer-persuade potential customers to switch brandsDifferentiation strategies fail when which of the following occur? - Answer-1. when competitors match a company's differentiation strategy 2. when buyers don't value a product or brand's uniqueness Low cost providers need to be especially careful not to make the mistake of _____ - Answer-cutting prices too aggressively If a low cost provider has invested heavily in its current means of operating, _____. - Answer-it will be expensive for the provider to shift to a new technology Which company employs the differentiation strategies of wide selection and one-stop shopping? - Answer-Home Depot Which of the following are results of successful differentiation strategies adopted by companies? - Answer-1. an improvement in buyer loyalty 2. an increase unit sales Differentiation strategies can increase a company's profitability if ______. - Answer-1. product prices can be raised sufficiently 2. increased sales are more than enough to cover the costs of differentiation. the most systematic approach to achieving differentiation is to focus on ___. - Answer-value drivers