SEVI 3013 EXAM 2 QUESTIONS & ANSWERS
A firm's ability to manufacture unique products in small quantities at low cost is known
as - Answer -mass customization
Which of the following are pitfalls of using a focus strategy? - Answer -New competitors
may enter lucrative niche markets.
Cost advantages for the focus segment may become eroded over time.
Companies may become too focused to satisfy buyer needs.
Companies can use combination strategies with technology to - Answer -link their value
chain with the value chains of their customers and suppliers
Michael Porter presented three ______ strategies to achieve competitive advantage by
overcoming the five forces. - Answer -generic
Research has found that companies that ______. - Answer -use multiple forms of
competitive advantage (e.g., cost leadership and differentiation) outperform those that
do not
Which of the following can erode a company's competitive advantage? (Check all that
apply.) - Answer -globalized trade
competitors' actions
technological advancements
Name the stages of the industry life cycle in the correct order, with the first stage at the
top. - Answer -Introduction
Growth
Maturity
Decline
Which of the following are characteristics of the growth stage? - Answer -growing
competition
developing brand recognition
increasing sales revenues
financing complementary value-chain activities
Which of the following are goals of reverse positioning? - Answer -Allow a product to
assume a new competitive position in its category.
Move a product from maturity backward into a growth position.
The ability of some firms to manufacture unique products in relatively small quantities at
lower costs is due to advances in ______ technologies. - Answer -manufacturing
information
A firm's ability to manufacture unique products in small quantities at low cost is known
as - Answer -mass customization
Which of the following are pitfalls of using a focus strategy? - Answer -New competitors
may enter lucrative niche markets.
Cost advantages for the focus segment may become eroded over time.
Companies may become too focused to satisfy buyer needs.
Companies can use combination strategies with technology to - Answer -link their value
chain with the value chains of their customers and suppliers
Michael Porter presented three ______ strategies to achieve competitive advantage by
overcoming the five forces. - Answer -generic
Research has found that companies that ______. - Answer -use multiple forms of
competitive advantage (e.g., cost leadership and differentiation) outperform those that
do not
Which of the following can erode a company's competitive advantage? (Check all that
apply.) - Answer -globalized trade
competitors' actions
technological advancements
Name the stages of the industry life cycle in the correct order, with the first stage at the
top. - Answer -Introduction
Growth
Maturity
Decline
Which of the following are characteristics of the growth stage? - Answer -growing
competition
developing brand recognition
increasing sales revenues
financing complementary value-chain activities
Which of the following are goals of reverse positioning? - Answer -Allow a product to
assume a new competitive position in its category.
Move a product from maturity backward into a growth position.
The ability of some firms to manufacture unique products in relatively small quantities at
lower costs is due to advances in ______ technologies. - Answer -manufacturing
information
