Chapter 5

Question 1

Competitive Strategy

Answer 1

concerns the specifics of management’s game plan for competing successfully and securing a competitive advantage over rivals in the marketplace

Question 2

Low cost provider strategy:

Answer 2

striving to achieve lower overall costs than rivals and appealing to a broad spectrum of customers, usually by underpricing rivals

Question 3

A broad differentiation strategy

Answer 3

seeking to differentiate the company’s product or service from rivals in a way that will appeal to a broad spectrum of buyers

Question 4

A focus low cost strategy

Answer 4

concentrating on a narrow buyer segment or market niche and outcompeting rivals by having lower costs than rivals and thus being able to serve niche member at a lower price

Question 5

A focused differentiation strategy:

Answer 5

concentrating on a narrow buyers segment or market niche and outcompeting rivals by offering niche members customized attributes that meet their tastes and requirements better than rivals products

Question 6

A best cost provider strategy

Answer 6

giving customer more value for the money by satisfying buyers expectations on key quality / features/ performance / service attributes while beating their price expectations. This option is a hybrid strategy that blends elements of low-cost provider and differentiation strategies; the aim is to have the lower best costs and price among sellers offering product with comparable differentiating attributes

Question 7

Low cost leader

Answer 7

a basis competitive advantage is lower overall costs than competitors. Success is achieving a low-cost edge over rival comes from eliminating and/or curbing nonessential activates and/or outmanaging rivals in performing essential activities

Question 8

Cost drivers

Answer 8

a factor having a strong effect on the cost of a company’s value chain activities and cost structure

Question 9

Broad differentiation strategy

Answer 9

the essence of abroad differentiation strategy is to offer unique product or service attribute that a wide range of buyers find appealing and worth paying

Question 10

Uniqueness driver

Answer 10

a value chain activity or factor that have a strong effect on customer value and creating differentiation

Question 11

Best cost provider strategies

Answer 11

are a hybrid of low-cost provider and differentiation strategies that aim at satisfying buyer expectations on key quality/features/performance/service attributes and beating customer expectations on price