Chapter 05 The Five Generic Competitive Strategies Answer Key
Multiple Choice Questions
1.
The objective of competitive strategy is to
5-2
2.
While there are many routes to competitive advantage, they all involve
5-3
3.
A company’s competitive strategy deals with
4.
Which of the following is
not
one of the five generic types of competitive strategy?
5-4
5.
The generic types of competitive strategies include
5-5
6.
A low-cost leader’s basis for competitive advantage is
7.
A low-cost leader can translate its low-cost advantage over rivals into superior profit
performance by
5-6
8.
The major avenues for achieving a cost advantage over rivals include
5-7
9.
To succeed with a low-cost provider strategy, company managers have to
5-8
10.
Achieving a cost advantage over rivals entails
5-9
11.
Which of the following is
not
an action that a company can take to do a better job than rivals
of performing value chain activities more cost-effectively?
5-10
12.
Which of the following is
not
one of the ways that a company can achieve a cost advantage by
revamping its value chain?
5-11
13.
A competitive strategy of striving to be the low-cost provider is particularly attractive when
5-12
14.
A competitive strategy to be the low-cost provider in an industry works well when
5-13
15.
In which of the following circumstances is a strategy to be the industry’s overall low-cost
provider
not
particularly well matched to the market situation?
16.
A strategy to be the industry’s overall low-cost provider tends to be more appealing than a
differentiation or focus strategy when
5-14
17.
Which of the following is
not
one of the pitfalls of a low-cost provider strategy?
18.
Examples of important cost drivers in a company’s value chain do
not
include
19.
Successful differentiation allows a firm to
5-16
20.
A company that succeeds in differentiating its product offering from those of its rivals can
usually
5-17
21.
Companies can pursue differentiation from many angles, including
22.
Easy-to-copy differentiating features
5-18
23.
The most appealing approaches to differentiation are those that
5-19
24.
A differentiation-based competitive advantage
5-20
25.
Opportunities to differentiate a company’s product offering