GBA 490 Ch. 5-8
Low-cost leaders – CORRECT ANSWER – have the lowest industry costs, are
exceptionally good at finding ways to drive costs out of their businesses but still provide
acceptable product.
Cost driver – CORRECT ANSWER – a factor that has a strong influence on a company's
costs.
Broad Differentiation Strategy – CORRECT ANSWER – to offer a unique product
attributes that a wide range of buyers find appealing.
Value/Uniqueness Driver – CORRECT ANSWER – a factor that can have a strong
differentiating effect.
Best Cost Provider Strategies – CORRECT ANSWER – Hybrid of low cost provider and
differentiation strategies that aim at providing desirable attributes while beating rivals on
price.
Strategic offenses – CORRECT ANSWER – called for when a company spots opportunities
to gain profitable market share at its rivals expense or when a company has no choice but
to try to whittle away at a strong rival's competitive advantage.
Blue-ocean Strategy – CORRECT ANSWER – offers growth in revenues and profits by
discovering or inventing new industry segments that create altogether new demand. It
renders existing competitors irrelevant.
Scope of the firm – CORRECT ANSWER – refers to the range of activities that the firm
performs internally, the breadth of its product and service offerings, the extent of its
geographic market presence, and its mix of businesses.
Horizontal Scope – CORRECT ANSWER – the range of product and service segments that
a firms serves within its focal market.
Vertical Scope – CORRECT ANSWER – the extent to which a firms internal activities
encompass the range of activities that make up and industry's entire value chain system,
from raw-material production to final sales and service activities.
Vertically Integrated firm – CORRECT ANSWER – one that performs value chain
activities along more than one stage of an industry's value chain system.
Low-cost leaders – CORRECT ANSWER – have the lowest industry costs, are
exceptionally good at finding ways to drive costs out of their businesses but still provide
acceptable product.
Cost driver – CORRECT ANSWER – a factor that has a strong influence on a company's
costs.
Broad Differentiation Strategy – CORRECT ANSWER – to offer a unique product
attributes that a wide range of buyers find appealing.
Value/Uniqueness Driver – CORRECT ANSWER – a factor that can have a strong
differentiating effect.
Best Cost Provider Strategies – CORRECT ANSWER – Hybrid of low cost provider and
differentiation strategies that aim at providing desirable attributes while beating rivals on
price.
Strategic offenses – CORRECT ANSWER – called for when a company spots opportunities
to gain profitable market share at its rivals expense or when a company has no choice but
to try to whittle away at a strong rival's competitive advantage.
Blue-ocean Strategy – CORRECT ANSWER – offers growth in revenues and profits by
discovering or inventing new industry segments that create altogether new demand. It
renders existing competitors irrelevant.
Scope of the firm – CORRECT ANSWER – refers to the range of activities that the firm
performs internally, the breadth of its product and service offerings, the extent of its
geographic market presence, and its mix of businesses.
Horizontal Scope – CORRECT ANSWER – the range of product and service segments that
a firms serves within its focal market.
Vertical Scope – CORRECT ANSWER – the extent to which a firms internal activities
encompass the range of activities that make up and industry's entire value chain system,
from raw-material production to final sales and service activities.
Vertically Integrated firm – CORRECT ANSWER – one that performs value chain
activities along more than one stage of an industry's value chain system.
