A) cutting its price to levels significantly below the prices of rivals.
B) using its low-cost edge to underprice competitors and attract price-sensitive buyers in large enough numbers to increase total profits or refraining from price cutting and using the low-cost advantage to earn a higher profit margin on each unit sold.
C) going all out to use its cost advantage to capture a dominant share of the market.
D) spending heavily on advertising to promote the fact that it charges the lowest prices in the industry.
E) outproducing rivals and thus having more units available to sell.
G) D) and E)
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A) concentrating on the primary activities portion of the value chain and outsourcing all support activities.
B) being a first mover in pursuing backward and forward integration and controlling as much of the industry value chain as possible.
C) performing value chain activities more cost-effectively than rivals and finding ways to eliminate or bypass some cost-producing activities.
D) minimizing R&D expenses and paying below-average wages and salaries to conserve on labor costs.
E) producing a standard product, redesigning the product infrequently, and having minimal advertising.
G) A) and C)
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A) When buyer needs and preferences are diverse
B) When few rivals are pursuing a similar differentiation approach
C) When buyers are homogeneous in their needs and preferences and are generally satisfied with standardized product
D) When there are many ways to differentiate the product or service and many buyers perceive these differences as having value
E) When technological change is fast paced and competition revolves around rapidly evolving product features
G) C) and D)
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A) are always dependent on the capabilities of the company's R&D staff.
B) are more likely to be captured by highly skilled marketers.
C) can exist in supply chain activities, R&D, manufacturing activities, distribution and shipping, or marketing, sales, and customer service.
D) usually are tied to product quality and durability and product reliability and proliferation.
E) are most frequently attached to a product's brand image, performance, and reliability.
G) A) and B)
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A) eliminating or curbing nonessential cost-producing activities and performing essential value chain activities more cost-effectively that rivals.
B) having a management team that accepts below-market salaries.
C) being a first mover in adopting the latest state-of-the-art technologies, especially those relating to low-cost manufacture.
D) outsourcing high-cost activities to offshore vendors.
E) paying lower wages to hourly workers than what rivals are paying workers.
G) C) and D)
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A) trying to differentiate on the basis of attributes or features that are easily copied.
B) choosing to differentiate on the basis of attributes that buyers do not perceive as valuable or worth paying for.
C) trying to charge too high a price premium for the differentiating features.
D) being timid and not striving to open up meaningful gaps in quality or service or performance features relative to the products of rivals.
E) All of these.
G) A) and E)
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A) there are many ways to differentiate the product or service and many buyers perceive these differences as having value.
B) most buyers have the same needs and use the product in the same ways.
C) buyers are susceptible to clever advertising.
D) barriers to entry are high and suppliers have a low degree of bargaining power.
E) price competition is especially vigorous.
G) C) and D)
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A) relying too heavily on outsourcing.
B) getting squeezed between the strategies of firms employing low-cost provider strategies and high-end differentiation strategies.
C) getting trapped in a price war with low-cost leaders.
D) being timid in cutting its prices far enough below high-end differentiators to win away many of their customers.
E) not having a sustainable distinctive competence in cost reduction.
G) C) and E)
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A) build market share, maintain market share, and slowly surrender market share.
B) offensive strategies and defensive strategies.
C) low-cost provider, broad differentiation, focused low-cost, focused differentiation, and best-cost provider strategies.
D) low-cost/low-price strategies, high-quality/high-price strategies, medium-quality/medium-price strategies, low-cost/high-price strategies.
E) price leader strategies, price follower strategies, technology leader strategies, first-mover strategies, offensive strategies, and defensive strategies.
G) B) and D)
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A) building a brand name image that buyers trust.
B) delivering superior value to buyers in ways rivals cannot readily match.
C) achieving lower costs than rivals and becoming the industry's sales and market share leader.
D) finding effective and efficient ways to strengthen the company's competitive assets and to reduce its competitive liabilities.
E) getting in the best strategic group and dominating it.
G) A) and B)
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A) excellent marketing and sales skills in convincing buyers to pay a premium price for the attributes/features incorporated in its product.
B) the capability to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes.
C) access to greater learning/experience curve effects and scale economies than rivals.
D) one of the best-known and most respected brand names in the industry.
E) a short, low-cost value chain.
G) C) and D)
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A) overly aggressive price cutting thereby ending up with lower, rather than higher profitability.
B) reducing costs that can be easily replicated and thus the cost advantage is not sustainable.
C) the zealous pursuit of cost reduction to the detriment of other important strategy profit moves.
D) ignoring competitive process or technological breakthroughs.
E) All of these.
G) A) and D)
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A) buyer needs and preferences are too diverse to be fully satisfied by a standardized product.
B) most buyers have similar needs and use the product in the same ways.
C) the products of rivals are weakly differentiated and most competitors are resorting to clever advertising to try to set their product offerings apart.
D) buyers are price sensitive and buying switching costs are quite low.
E) the five competitive forces are strong.
G) All of the above
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A) When the offerings of rival firms are essentially identical, standardized, commodity-like products
B) When there are few ways to achieve differentiation that have value to buyers
C) When price competition is especially vigorous
D) When buyers have widely varying needs and special requirements and when the cost of switching purchases from one seller to another are relatively high
E) When industry newcomers use introductory prices to build a customer base
G) A) and B)
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A) do not offer the promise of sustainable competitive advantage.
B) are less expensive to integrate into a product or service offering.
C) tend to create as much value for consumers as difficult-to-copy differentiating features.
D) should be patented before other companies follow suit.
E) lead to vigorous price competition.
G) A) and B)
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A) providing a unique competitive product taste.
B) executing superior customer service.
C) ensuring engineering design and performance benefits.
D) providing products that ensue luxury and prestige.
E) All of these.
G) A) and E)
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A) those that are the most costly to incorporate.
B) those that match the differentiating features offered by rivals in the industry.
C) those that can be made even more attractive to buyers via clever advertising.
D) those that appeal to the most affluent consumers.
E) those that are hard or expensive for rivals to duplicate and that also have considerable buyer appeal.
G) A) and B)
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A) Trying to strongly differentiate the company's product from those of rivals rather than be content with weak product differentiation
B) Over differentiating so that the features and attributes incorporated exceed buyer needs and requirements
C) Trying to charge too high a price premium for the differentiating features
D) Differentiating on features or attributes that rivals can easily copy
E) Overspending on efforts to differentiate the company's product offering
G) C) and D)
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A) outmatching competitors in offering niche members an absolute rock-bottom price.
B) delivering more value for the money than other competitors.
C) performing the primary value chain activities at a lower cost per unit than can the industry's low-cost leaders.
D) dominating more market niches in the industry via a lower cost and a lower price than any other rival.
E) serving buyers in the target market niche at a lower cost and lower price than rivals.
G) B) and D)
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A) the nature of differentiation is hard to quantify.
B) buyers are making a first-time purchase.
C) repurchase of the product or service is infrequent.
D) buyers are unsophisticated and unfamiliar with the capabilities of competing brands.
E) All of these.
G) A) and C)
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