Sevi 3013 Uark Exam 2 questions and
answers graded A+
Porter's Generic Strategies - correct answer ✔✔cost leadership, differentiation, and focus
overall cost leadership - correct answer ✔✔a firm's generic strategy based on appeal to the
industrywide market using a competitive advantage based on low cost
Differentiation - correct answer ✔✔products/services that are unique and valued
focus strategy - correct answer ✔✔the positioning strategy of using cost leadership or
differentiation to produce a specialized product or service for a limited, specially targeted group
of customers in a particular geographic region or market segment
differentiation strategy forms - correct answer ✔✔Prestige or brand image
Quality
Technology
Innovation
Features
Customer service
Dealer network
cost-focus strategy - correct answer ✔✔Creates a cost advantage in its target segment
Exploits differences in cost behavior
differentiation focus - correct answer ✔✔Differentiates itself in its target market
, Exploits the special needs of buyers
Industry Life Cycle - correct answer ✔✔the stages of introduction, growth, maturity, and decline
that typically occur over the life of an industry
introduction stage - correct answer ✔✔- Products are unfamiliar to consumers
- Market segments are not well-defined
- Product features are not clearly specified
- Competition tends to be limited
growth stage - correct answer ✔✔- Characterized by strong increases in sales
- Attractive to potential competitors
- When firms can build brand recognition
maturity stage - correct answer ✔✔Aggregate industry demand slows
Market becomes saturated, few new adopters
Direct competition becomes predominant
Marginal competitors begin to exit
decline stage - correct answer ✔✔-Industry sales and profits begin to fall
-Price competition increases
-Industry consolidation occurs
strategies for decline stage - correct answer ✔✔-Maintaining
-Harvesting
-Exiting the market
answers graded A+
Porter's Generic Strategies - correct answer ✔✔cost leadership, differentiation, and focus
overall cost leadership - correct answer ✔✔a firm's generic strategy based on appeal to the
industrywide market using a competitive advantage based on low cost
Differentiation - correct answer ✔✔products/services that are unique and valued
focus strategy - correct answer ✔✔the positioning strategy of using cost leadership or
differentiation to produce a specialized product or service for a limited, specially targeted group
of customers in a particular geographic region or market segment
differentiation strategy forms - correct answer ✔✔Prestige or brand image
Quality
Technology
Innovation
Features
Customer service
Dealer network
cost-focus strategy - correct answer ✔✔Creates a cost advantage in its target segment
Exploits differences in cost behavior
differentiation focus - correct answer ✔✔Differentiates itself in its target market
, Exploits the special needs of buyers
Industry Life Cycle - correct answer ✔✔the stages of introduction, growth, maturity, and decline
that typically occur over the life of an industry
introduction stage - correct answer ✔✔- Products are unfamiliar to consumers
- Market segments are not well-defined
- Product features are not clearly specified
- Competition tends to be limited
growth stage - correct answer ✔✔- Characterized by strong increases in sales
- Attractive to potential competitors
- When firms can build brand recognition
maturity stage - correct answer ✔✔Aggregate industry demand slows
Market becomes saturated, few new adopters
Direct competition becomes predominant
Marginal competitors begin to exit
decline stage - correct answer ✔✔-Industry sales and profits begin to fall
-Price competition increases
-Industry consolidation occurs
strategies for decline stage - correct answer ✔✔-Maintaining
-Harvesting
-Exiting the market
