Reference no: EM132241394
1. What are two ways a company cab translates its low-cost advantage over rivals into attractive profit performance?
A) Eliminating or curbing nonessential activities and aggressive use of activity-based costing
B) Having a smaller labor force than rivals and outsourcing many value chain activities to suppliers with world class technological capabilities
C) Doing a better job than its rivals in performing essential activities and utilizing more best practices than its rivals use
D) Pursuing the aggressive use of activity-based costing, utilizing more best practices than its rivals use and having a narrower product line than its rivals offer
E) Eliminating or curbing nonessential activities and doing a better job than its rivals in performing essential activities
2. A focused low-cost strategy
A) Involves serving buyers in the market niche at a lower cost and a lower price than rival competitors
B) Is the hardest of the four generic types of competitive strategies to employ successfully
C) Involves the use of deep price discounting to capture customers
D) Entails trying to wrest market share away from rivals via extra advertising, above-average expenditures for promotional programs, and heavy use of point-of-sale merchandising techniques
E) Cannot be sustained over time unless the focuser is aggressive in entering other segments where it can also achieve a low-cost advantage
3. A firm pursing a best-cost provider strategy
A) Seeks to offer more value-adding features than the industry’s low-cost providers and lower prices than those pursuing differentiation
B) Tries to have the best (as compared to its rivals) for each activity in the industry’s chain
C) Achieves competitive advantage because its operating activities are “best-in-class” or “best-in-world”
D) Follows a hybrid strategy based upon superior resources and a narrow market niche
E) Seeks a “middle of the road” strategic approach that attempts to satisfy the product or service needs of consumers with average household incomes.