WPC 480 Chapter 4 Exam With Complete Solutions

WPC 480 Chapter 4 Exam With Complete Solutions Business-Level Strategy - answerIntegrated and coordinated set of commitments and actions used to gain competitive advantage by exploiting core competencies in a SPECIFIC product market. Digital Strategy - answerUses digital technology to understand customers' needs and develop innovations for creating more value. Business Model - answerDescribes how a firm creates, delivers, and captures value for its stakeholders. Cost Leadership - answer- Strategy to produce products with acceptable features at the lowest cost - achieved through process innovations - Competitive risks: 1. could become obsolete due to competitors innovations 2. cost reductions may come at expense of trying to understand customer's perceptions 3. imitation Differentiation - answer- Strategy to produce products perceived as different in important ways to target customers - Competitive risks: 1. may decide price difference is too large 2. means of differentiation may cease 3. narrow customers perceptions of value of a products differentiated features Focus Strategies - answer- produce products serving the needs of a particular customer segment -Competitive risks: 1. "out focus" 2. company on industry wide basis may decide segment is attractive and worthy of competitive pursuit 3. customer needs may be similar to industry wide competitors Integrated Cost Leadership/Differentiation - answer- Engages in primary value chain activities and support functions to achieve a low-cost position with some product differentiation -Competitive risks: 1. difficult to perform value chain and support activities inexpensively and differentiate 2. reducing costs and differentiation is necessary simultaneously Market Segmentation - answerProcess of dividing customers into groups based on their needs. Business Model Innovation - answerOccurs when a firm replaces its current business model with a newer one in response to changing conditions. Freemium Model - answerOffers basic services for free and charges for premium features. Subscription Model - answerOffers a product to customers on a regular basis such as once- per-month or once-per-year. Digital Platform - answerInternet-based location for exchanges of information, goods, or services between producers, consumers, and other members of the platform community. Flexible Manufacturing Systems - answerComputer-controlled process used to produce a variety of products in moderate, flexible quantities with minimal manual intervention. Total Quality Management Systems - answerImplementation of appropriate tools/techniques to provide products and services to customers with the best quality. Stuck in the Middle - answerFirms that compete at a disadvantage and are unable to earn more than average returns. Which of the following strategies helps a firm concentrate on understanding its customers and their needs with greater clarity as a foundation for innovation? Digital strategy Business model strategy Cost leadership strategy Market segmentation strategy - answerDigital strategy