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BUS 475 exam 2 Questions with Detailed
Verified Answers
While there are many routes to competitive advantage, the two biggest
factors that distinguish one competitive strategy from another are Ans:
Whether a company's target market is broad or narrow and whether the
company is pursuing a low cost or differentiation strategy
The major avenues for achieving a cost advantage over rivals include
Ans: Performing value chain activities more cost-effective than rivals or
revamping the firm's overall value chain to eliminate or bypass some
cost-producing activities
A potato chip manufacturer purchases a potato farm. Which of the
following regarding its strategy is true? Ans: The manufacturer has
effectively used vertical integration to increase its bargaining position and
reduce transaction costs
The essence of a broad differentiation strategy is to Ans: Offer unique
product attributes in ways that are valuable and appealing and that the
buyer considers worth paying for
A differentiation strategy works best when Ans: Technological change is
fast-paced and competition revolves around rapidly evolving product
features
A focused differentiation strategy aims at securing competitive advantage
by Ans: Offering a product carefully designed to appeal to the unique
preferences and needs of a narrow, well-defined group of buyers
BUS 475 exam 2 Questions with Detailed
Verified Answers
While there are many routes to competitive advantage, the two biggest
factors that distinguish one competitive strategy from another are Ans:
Whether a company's target market is broad or narrow and whether the
company is pursuing a low cost or differentiation strategy
The major avenues for achieving a cost advantage over rivals include
Ans: Performing value chain activities more cost-effective than rivals or
revamping the firm's overall value chain to eliminate or bypass some
cost-producing activities
A potato chip manufacturer purchases a potato farm. Which of the
following regarding its strategy is true? Ans: The manufacturer has
effectively used vertical integration to increase its bargaining position and
reduce transaction costs
The essence of a broad differentiation strategy is to Ans: Offer unique
product attributes in ways that are valuable and appealing and that the
buyer considers worth paying for
A differentiation strategy works best when Ans: Technological change is
fast-paced and competition revolves around rapidly evolving product
features
A focused differentiation strategy aims at securing competitive advantage
by Ans: Offering a product carefully designed to appeal to the unique
preferences and needs of a narrow, well-defined group of buyers
