True or False

The Internet offers few advantages for focusers because niche players and small companies cannot
implement capabilities as effectively as their larger competitors. *

1 point https://www.brainscape.com/flashcards/5-4046739/packs/5956068

True

False

An important potential pitfall of an integrated overall cost leadership and differentiation strategy is
that firms may fail to implement either one and become "stuck-in-the-middle." *

1 point
https://quizlet.com/244198053/mgo403-exam-2-quiz-qs-flash-cards/#:~:text=following%20means%20EXCEPT-,offering%20lower%20
prices%20to%20frequent%20customers.,in%2Dthe%2Dmiddle.%22&text=higher%20than%20firms%20that%20achieve%20either%2
0a%20cost%20or%20a%20differentiation%20advantage.

True

False

A firm can strengthen its differentiation strategy by achieving integration at multiple points along the
value chain. *

1 point https://quizlet.com/234158101/strategic-management-chapter-5-tf-flash-cards/

True

False

The market life cycle should be used as a short-run forecasting device because it provides a
conceptual framework for understanding what changes typically occur. *

1 point https://quizlet.com/153879790/mgmt-4513-quiz-2-flash-cards/

True

False

A successful differentiation strategy increases rivalry since buyers become more price-sensitive. *

1 point https://www.brainscape.com/flashcards/5-4046739/packs/5956068

True

False

Given the attractiveness of premium pricing during the growth stage of the market lifecycle,
managers should emphasize short-term results to increase profits. *

1 point https://quizlet.com/389233160/ba-405-exam-two-5-7-flash-cards/

True

False
Firms that compete on overall cost leadership are vulnerable if all rivals share a common input or raw
material that contributes significant amount to total costs. *

1 point https://quizlet.com/234158101/strategic-management-chapter-5-tf-flash-cards/

True

False

Most analysts agree that use of the Internet will lower transaction costs. *

1 point
https://quizlet.com/126583486/chapter-5-flash-cards/#:~:text=Most%20analysts%20agree%20that%20use%20of%20the%20Internet
%20will%20lower%20transaction%20costs.&text=The%20Internet%20offers%20few%20advantages,effectively%20as%20their%20la
rger%20competitors.

True

False

Michael Porter's three generic strategies can be depicted on two dimensions: competitive advantage
and product life cycle. *

1 point https://quizlet.com/98195406/org-strat-midterm-5-flash-cards/

True

False

Concentrating solely on one form of competitive advantage generally leads to the highest possible
level of profitability. *

1 point
https://quizlet.com/234158101/strategic-management-chapter-5-tf-flash-cards/#:~:text=False-,concentrating%20solely%20on%20one
%20form%20of%20competitive%20advantage%20generally%20leads,highest%20possible%20level%20of%20profitability.&text=A%2
0firm%20striving%20for%20cost,than%20on%20process%20related%20R%26D.

True

False

Multiple Choice
1Which of the following methods of implementing a differentiation strategy has been greatly
enhanced because of Internet technologies? *

1 point https://quizlet.com/378221773/bamg-quiz-5-flash-cards/

A. celebrity endorsements

B. prestige packaging

C. exceptional service

D. mass customization

Which of the following phrases best completes this sentence: Because of the Internet, firms that use
a focus strategy have new opportunities to *
 1 point https://www.coursehero.com/file/p3dkhvv/Which-of-the-following-phrases-best-completes-the-sentence-Because-of-the/

A. respond quickly to customer requests.

B. provide more services and features.

C. access markets less expensively.

D. access niche markets in a highly specialized fashion.

Which of the following statements about the introduction stage of the market life cycle is true? *

1 point https://quizcc.blogspot.com/2017/10/which-of-following-statements-about.html

A. It produces relatively large, positive cash flows.

B. Strong brand recognition seldom serves as an important switching cost.

C. Market share gains by pioneers are usually easily sustained for many years.

D. Products or services offered by pioneers may be perceived as differentiated simply because they are new.

Research shows that the following are all strategies used by firms engaged in successful turn
arounds except *

1 point https://quizlet.com/154713622/mgt-3830-exam-1-flash-cards/

A. asset and cost surgery.

B. selective product and market pruning.

C. global expansion.

D. piecemeal productivity improvements.

One aspect of using a cost leadership strategy is that experience effects may lead to lower costs.
Experience effects are achieved by *

1 point https://quizlet.com/444362911/bpl-ch-5-flash-cards/

A. hiring more experienced personnel.

B. repeating a process until a task becomes easier.

C. spreading out a given expense or investment over a greater volume.

D. competing in an industry a long time.

The primary aim of strategic management at the business level is *

1 point https://quizlet.com/75228628/bus-195-exam-3-flash-cards/

A. maximizing risk-return tradeoffs through diversification.

B. achieving a low cost position.

C. maximizing differentiation of products and/or services.

D. achieving competitive advantage(s).

All of the following are potential pitfalls of a differentiation strategy except: *

 1 point https://www.coursehero.com/file/p5mt2u9/All-of-the-following-are-potential-pitfalls-of-a-differentiation-strategy-except/

A. uniqueness that is not valuable.

B. too high a price premium.

C. all rivals share a common input or raw material.

D. perceptions of differentiation may vary between buyers and sellers.

Convincing rivals not to enter a price war, protection from customer pressure to lower prices, and the
ability to better withstand cost increases from suppliers characterize which type of competitive
strategy? *

1 point https://quizlet.com/153879790/mgmt-4513-quiz-2-flash-cards/

A. Overall cost leadership.

B. Differentiation.

C. Differentiation focus.

D. Cost leadership focus.

A __________ can be defined as the total profits in an industry at all points along the industry's value
chain. *

1 point google

A. profit maximizer

B. revenue enhancer

C. profit pool

D. profit outsourcing

In the __________ stage of the industry lifecycle, there are many segments, competition is very intense,
and the emphasis on process design is high. *

1 point Module 5 Page 18

A. introduction

B. growth

C. maturity

D. decline