Building Competitive Advantage Through Business-level Strategy

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Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage
External Analysis: The Identification of Opportunities and Threats
Internal Analysis: Distinctive Competencies,Competitive Advantage,and Profitability
Building Competitive Advantage Through Functional-Level Strategy
Building Competitive Advantage Through Business-Level Strategy
Business-Level Strategy and the Industry Environment
Strategy and Technology
Strategy in the Global Environment
Corporate-Level Strategy: Horizontal Integration,Vertical Integration,and Strategic Outsourcing
Corporate-Level Strategy: Related and Unrelated Diversification
Corporate Performance,Governance,and Business Ethics
Implementing Strategy in Companies That Compete in a Single Industry
Implementing Strategy in Companies That Compete Across Industries and Countries

All Questions

Question 1

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A firm's business model should contain three components: what is to be satisfied,who is to be satisfied,and how they will be satisfied.

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Question 2

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Both the way a product is differentiated from other products of its type and the price of the product determine which product a customer chooses to satisfy his or her needs.

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Question 3

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Companies with a differentiation advantage must charge a lower price for their products.

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Question 4

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A company searching for a successful business model has to group customers according to the similarities or differences in their needs to discover what kinds of products to develop that will best meet the needs of different kinds of customers.

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Question 5

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Market segmentation addresses the "what" portion of a firm's business model.

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Question 6

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Maximizing the profitability of a company's business model is about making the right choices with regard to value creation through differentiation,costs,and pricing given both the demand conditions in the company's market and the competitive conditions in the company's industry.

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Question 7

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Companies that successfully pursue a cost leadership strategy generally have a distinctive competency in research and development.

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Question 8

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All focus strategies entail serving a specific market segment using a differentiation approach.

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Question 9

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A cost leader must respond to the strategic moves of its differentiated competitors.

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Question 10

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Differentiation on the basis of innovation and technological competency depends on the research and development function.

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Question 11

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A major problem with a differentiation strategy centers on the long-term ability to maintain a product's perceived difference or distinctness in customers' eyes.

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Question 12

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Once a focused differentiator gains competitive advantage in its market,the threat of competitive rivalry is greatly reduced.

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Question 13

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Differentiation leads to high brand loyalty,which in turn significantly increases the threat of new firms entering the industry.

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Question 14

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Market segmentation is an evolving,ongoing process that presents considerable opportunities for strategic managers to improve their company's business model.

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Question 15

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Fortunately,focusers are not vulnerable to shifting consumer tastes,because of brand loyalty that comes with focused strategy.

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Question 16

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If consumer tastes change and a focuser's niche disappears,the danger for the focuser is that it might have difficulty shifting resources from its niche to another market segment.

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Question 17

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Strategic group analysis allows managers to focus only on what is happening in their group.

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Question 18

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To pursue a successful business model,managers must be careful to ensure that the set of business-level strategies they have formulated and implemented are working in harmony to support each other.

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Question 19

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The three generic business-level strategies are cost leadership,differentiation,and mass marketing.

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Question 20

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Cost leaders ignore the many different market segments in an industry and position their products to appeal to the average customer.

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