Chapter 15

Question 1

is anything that gives a company/organization an edge
over its competitors, helping it attract more customers and grow its market shares.
- This value is created internally and is what sets the business apart from its
competition

Answer 1

1A competitive advantage

Question 2

Often referred to as a Competitive advantage is often likened to
a protective moat because, like a moat around a castle, it acts as a barrier against
competitors.

Answer 2

“protective moat.”

Question 3

A makes it challenging for rivals to replicate or
surpass a company’s position in the market. This strategic advantage helps
businesses maintain profitability and market share over the long term

Answer 3

competitive advantage

Question 4

• In the realm of competitive advantage, a value proposition
  refers to the unique combination of benefits that a company offers to its
  customers. It articulates why customers should choose a particular product or
  service over those offered by competitors. By effectively communicating its
  value proposition, a company can differentiate itself from competitors and
  attract and retain customers, thereby contributing to its competitive advantage
  in the market

Answer 4

Value Proposition

Question 5

o - In the context of competitive advantage, the target market
refers to the specific group of customers or segments that a company aims to
serve with its products or services. Identifying and understanding the target
market is crucial for developing and implementing effective strategies to gain a
competitive edge. By defining the target market, a company can tailor its
offerings, marketing messages, and distribution channels to meet the needs
and preferences of those customers more effectively than competitors

Answer 5

Target Market

Question 6

refer to other
businesses or entities that operate in the same industry or market and offer
similar products or services to the same target customers. These competitors
can vary in size, scope, and strategies, but they all vie for the attention and
business of the same customer base

Answer 6

Competitors -

Question 7

is a primary form of competitive advantage
achieved when a company can produce goods or services at a lower cost than
its competitors while maintaining similar quality. This allows the company to
offer its products at a lower price point, which can attract price-sensitive
customers and capture a larger market share

Answer 7

cost advantage

Question 8

• product advantage as a primary form of competitive
  advantage refers to the superiority of a company’s product or service compared
  to those offered by competitors. This advantage can manifest in various ways,
  such as superior quality, performance, functionality, design, or features that
  meet the specific needs or preferences of the target market better than
  alternatives.

Answer 8

Offer Advantage

Question 9

• as a primary form of competitive
  advantage, involves targeting a specific, specialized segment of the market
  where a company can excel and dominate. Instead of trying to compete broadly
  across the entire market, companies with a niche advantage focus on serving
  a narrow segment of customers with unique needs or preferences.

Answer 9

o Niche Advantage

Question 10

is achieved when a business consistently
outperforms other businesses in the same industry or field. Businesses with this
kind of advantage provide their clients with value that is better than the competition.
- It usually follows WHAT + WHY FORMULA (What your business is really good at)
+ (Why you’re good at it)

Answer 10

Sustainable competitive advantage

Question 11

o , the objective is to become the
lowest-cost producer. A company adopting a cost leadership strategy would be
able to reap profits due to its significant cost advantage over its competitors.

Answer 11

Cost Leadership-

Question 12

a company’s products or services are differentiated from that
of its competitors. This can be done by delivering high-quality products or
services to customers or innovating products or services.

Answer 12

o Differentiation-

Question 13

. This
is achieved when a company is able to successfully create products or services
that can cater to these specific customers

Answer 13

o Focus

Question 14

: lowest-cost producer in a narrow market segment
: differentiated products/services in a narrow market
segment

Answer 14

1. Cost-Focus
2. Differentiation-Focus

Question 15

• with the rise of the internet, there has been a huge increase
  in various social media platforms, which help businesses to connect and reach
  its target market in a relatively low-cost marketing channe

Answer 15

Cost Efficiency

Question 16

• the internet increases the visibility of a business, thereby giving
  products and services heightened exposure to global audience and
  international markets

Answer 16

o Global reach

Question 17

• the internet has enabled businesses to make use of
  automated systems and resource sharing. It streamlines processes, allowing
  businesses to automate customer purchases and preferences.

Answer 17

o Data Analytics

Question 18

• businesses that use the internet are vulnerable to a
  range of online risks, which can compromise sensitive company information,
  disrupt operations, and damage the business’ reputation.

Answer 18

o Cybersecurity Risks

Question 19

• the internet has provided limitless opportunities for
  business ventures thus, increasing the potential threat of new entrants and
  increased competition.

Answer 19

Increased Competition

Question 20

• the company may fail to reach to all of its customers or target
  market due to lack of access to the internet and social media platforms.
  Consequently, this would result to digital dependency which can result to lost
  productivity and financial losses

Answer 20

o Digital Divide