bus108-quiz 3 - Questions and Answers With complete solution–
Expert Verified
Your company has a cost differentiation strategy regarding its products.
There are several new entrants into your saturated market that make the
mar-gins so slim on the product line you manage, profits are almost non-
existent. What should you recommend to management?
A.
Drop your distributors and sell online through
Amazon.B.
Invest heavily in advertising to increase market
share.C.
1/6
,Upgrade the product, which would raise production costs significantly,
butcontinue to sell at the same price to grab market share.
D.
Discontinue the product and channel the money into other products that
don'thave so much market competition.
Your answer is
correct.E.
File a law suit against your competitors to drive them out of the market:
Discon-
tinue the product and channel the money into other products that don't have so much market competition.
You just heard that a well-known manufacturer in a different industry seg-
ment is going to enter your market with a product that will be a direct
2/6
, com- petitor in your existing industry. What should you do?: Modify and manage
your existing business processes to maximize supplier lock in and to build alliances with consumers and
suppliers
What is the relationship between the value chain and business processes an
IS structure?: Value chain determines customer requirements. Business processes implement the activities
needed to satisfy those requirements. IS structure supports each of those business process activities.
five primary: the generic value chain of ... activities and four support activities
What five forces determine industry structure?: Existing rivalries, threat of new entrants,
consumer bargaining power, supplier bargaining power, and threat of substitution
A reliable source in your industry has informed you that some of your more
aggressive competitors are planning to formulate agreements with
suppliers.You did some checking and discovered that some of the suppliers
are key to
3/6
Expert Verified
Your company has a cost differentiation strategy regarding its products.
There are several new entrants into your saturated market that make the
mar-gins so slim on the product line you manage, profits are almost non-
existent. What should you recommend to management?
A.
Drop your distributors and sell online through
Amazon.B.
Invest heavily in advertising to increase market
share.C.
1/6
,Upgrade the product, which would raise production costs significantly,
butcontinue to sell at the same price to grab market share.
D.
Discontinue the product and channel the money into other products that
don'thave so much market competition.
Your answer is
correct.E.
File a law suit against your competitors to drive them out of the market:
Discon-
tinue the product and channel the money into other products that don't have so much market competition.
You just heard that a well-known manufacturer in a different industry seg-
ment is going to enter your market with a product that will be a direct
2/6
, com- petitor in your existing industry. What should you do?: Modify and manage
your existing business processes to maximize supplier lock in and to build alliances with consumers and
suppliers
What is the relationship between the value chain and business processes an
IS structure?: Value chain determines customer requirements. Business processes implement the activities
needed to satisfy those requirements. IS structure supports each of those business process activities.
five primary: the generic value chain of ... activities and four support activities
What five forces determine industry structure?: Existing rivalries, threat of new entrants,
consumer bargaining power, supplier bargaining power, and threat of substitution
A reliable source in your industry has informed you that some of your more
aggressive competitors are planning to formulate agreements with
suppliers.You did some checking and discovered that some of the suppliers
are key to
3/6
