Which of the following is an example of a differentiated companys attention to efficiency quizlet?

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Terms in this set (50)

Companies that cannot identify any type of competitive advantage are classified as ______.

being stuck in the middle

______ is a generic strategy based on appeal to the industrywide market using a competitive advantage based on ______.

Overall cost leadership; low cost

______ is the decline in unit costs of production as cumulative output increases.

Experience curve

An overall cost leadership strategy helps companies erect substantial industry entry barriers through _______.

cost advantages gained due to high productivity

Select all that apply
Companies that use differentiation strategies may use which of the following to differentiate their products or services? (Check all that apply.)

features
prestige
technology

Research has found that companies that ______.

use multiple forms of competitive advantage (e.g., cost leadership and differentiation) outperform those that do not

Select all that apply
A successful overall cost leadership strategy requires a tight set of interrelated tactics that include which of the following? (Check all that apply.)

tight cost and overhead controls
vigorous pursuit of cost reductions for experience
aggressive construction of efficient-scale facilities

Salvamoser Steel fabricates widgets. When the company first began production, it had high unit costs because it was trying to figure out the most efficient manufacturing method. After a few years, Salvamoser Steel had ironed out its production issues, and unit costs of production declined, even as cumulative output increased. This is known as ______.

the experience curve

Select all that apply
Which of the following are ways an overall cost leadership strategy can improve a company's position vis-a-vis Porter's forces? (Check all that apply.)

Low-cost leaders can earn returns even when intense rivalry erodes profits.
Powerful buyers can only drive down prices to the level of the next most efficient producer.
Low-cost leaders are in a better position to absorb supplier price increases due to their margins.

Which type of strategy is based on creating differences in the firm's product or service offering by creating something that is perceived industrywide as unique and valued by customers?

differentiation

Select all that apply
A differentiation strategy can improve a company's position vis-a-vis Porter's forces due to which of the following? (Check all that apply.)

Rivalry is decreased because brand loyalty lowers customer sensitivity to price.
The threat of substitutes is decreased due to customer loyalty.
Customer loyalty results in increased barriers to entry for potential competitors.

Focus strategies exploit ______.

one or more specific segments by tailoring specific strategies to serve them

Select all that apply
Which of the following are ways that companies can combine overall cost leadership and differentiation? (Check all that apply.)

information technology
mass customization
profit pool

Select all that apply
The ability of some firms to manufacture unique products in relatively small quantities at lower costs is due to advances in ______ technologies. (Check all that apply.)

information
manufacturing

Select all that apply
Which of the following are ways that a combination strategy can improve a company's position vis-a-vis Porter's forces? (Check all that apply.)

Integrating value-chain activities lowers costs so the company can better withstand increases by suppliers.
Low pricing and a wide product selection reduces buyer bargaining power due to the lack of competitors that can provide comparable cost/value.
Potential entrants may face high barriers if they do not have the financial or physical resources to compete head-to-head.

Firms that use a differentiation strategy may be able to decrease buyer power ______.

since buyers lack comparable alternatives and are less price-sensitive

A ______ strategy is a firm's generic strategy based on appeal to a narrow market segment within an industry.

focus

Companies can use combination strategies with technology to ______.

link their value chain with the value chains of their customers and suppliers

A firm's ability to manufacture unique products in small quantities at low cost is known as ______.

mass customization

Select all that apply
Which of the following are benefits when companies successfully integrate cost and differentiation advantages create an enviable position? (Check all that apply.)

They decrease industry rivalry.
They decrease supplier and buyer power.
They are able to erect significant barriers to entry.

Which of the following statements about platform markets is true?

Firms in platform markets act as intermediaries between buyers and sellers.

The (1) (2) cycle refers to the stages that typically occur over the life of an industry.

1. industry
2. life

Select all that apply
The introduction stage of the industry life cycle is characterized by which of the following characteristics? (Check all that apply.)

rapid technological change and operating losses
unspecified product features and low sales growth
new products that are not known to customers
poorly defined market segments

Select all that apply
Which of the following are characteristics of the growth stage? (Check all that apply.)

developing brand recognition
financing complementary value-chain activities
growing competition
increasing sales revenues

Select all that apply
Which of the following are characteristics of the industry life cycle's maturity stage? (Check all that apply.)

strategic emphasis on efficient operations and company exiting industry
direct and price competition
slowing demand growth and saturated markets

Which of the following is an example of a platform firm?

Amazon

Click and drag on elements in order
Name the stages of the industry life cycle in the correct order, with the first stage at the top.

1. introduction
2. growth
3. maturity
4. decline

The ______ stage is the first stage of the industry life cycle.

introduction

The ______ stage is the second stage of the industry life cycle.

growth

The ______ stage is the third stage of the product life cycle.

maturity

Select all that apply
Which of the following are goals of reverse positioning? (Check all that apply.)

Allow a product to assume a new competitive position in its category.
Move a product from maturity backward into a growth position.

The ______ stage is the fourth stage of the industry life cycle and is characterized by falling sales and profits.

decline

Select all that apply
Firms that sell products in a declining industry are often affected by which of the following competitor actions? (Check all that apply.)

Prospects are limited if all competitors remain.
A company's market power may decrease if some of their rivals merge.
Sales and profits may increase if one or more competitors exit the industry.

Select all that apply
Which of the following are strategies that are available in the decline phase? (Check all that apply.)

maintaining
harvesting
exiting
consolidating

One reason a company would use a maintaining strategy for a declining stage product would be ______.

because the potential exists to continue to earn revenues and profits.

Companies that use a ______ positioning strategy offer products with fewer product attributes and lower prices, in contrast to the industry tendency to continuously augment products as part of the product life cycle.

reverse

Select all that apply
Which of the following are characteristics of the decline stage of the industry life cycle? (Check all that apply.)

increasing price competition
industry consolidation
falling sales and profits

Select all that apply
Which of the following are characteristics of products that are in the decline stage? (Check all that apply.)

Changes in customer tastes or technology decrease product demand.
Declining products often take a large share of time and financial resources relative to their worth.
Competitors often cut their prices.

Maintaining, harvesting, consolidating, and exiting are the four basic strategies available in the ______ phase.

decline

______ refers to keeping a product going without significantly reducing marketing support, technological development, or other investments, in the hope that competitors will eventually exit the market.

Maintaining

One reason for a company to use a harvesting strategy for a declining product is to ______.

earn as much profit as possible by quickly reducing costs in the value chain's primary and support activities

Select all that apply
Companies that exit markets need to be aware of ______.

how the exit will affect employees skilled in producing the product
how dropping the product may affect their brand name

Select all that apply
A turnaround strategy is most likely to occur during which of the following industry stages? (Check all that apply.)

maturity
decline

______ involves obtaining as much profit as possible and requires that costs be reduced quickly.

Harvesting

______ involves dropping the product from a firm's portfolio.

Exiting the market

______ is when firms in a turnaround situation discontinue product lines that are either only marginally profitable or are losing money and focus on a few core profitable areas.

Selective product and market pruning

A(n) ______ strategy involves reversing a decline in a company's performance and returning it to growth and profitability.

turnaround

______ is when firms in a turnaround situation seek to eliminate costs and improve productivity through small gains that accumulate over a period of time.

Piecemeal productivity improvements

JK Industries is a diversified company that has been in business for decades. Its healthcare division has been profitable, but its line of prestige beauty products has been losing money. JK decides to discontinue its line of prestige beauty products and focus its efforts on the healthcare lines that have been most promising. Which strategy is JK using?

selective product and market pruning

Select all that apply
Which of the following are examples of piecemeal productivity improvements? (Check all that apply.)

benchmarking specific activities against industry leaders
reengineering business processes
improving employee productivity
increasing capacity utilization

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question

Which of the following statements is most correct? a. If a firm’s expected basic earning power (BEP) is constant for all of its assets and exceeds the interest rate on its debt, adding assets and financing them with debt will raise the firm’s expected return on common equity (ROE). b. The higher a firm’s tax rate, the lower its BEP ratio, other things held constant. c. The higher the interest rate on a firm’s debt, the lower its BEP ratio, other things held constant. d. The higher a firm’s debt ratio, the lower its BEP ratio, other things held constant. e. Statement a is false; but statements b, c, and d are true.

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If a “typical” firm reports $20 million of retained earnings on its balance sheet, could its directors declare a$20 million cash dividend without having any qualms about what they were doing? Explain your answer.

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Explain whether the following statement is true or false: $100 a year for 10 years is an annuity; but$100 in Year 1, $200 in Year 2, and$400 in Years 3 through 10 does not constitute an annuity. However, the second series contains an annuity.

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What best describes a differentiation strategy quizlet?

Which one of the following is a characteristic of product differentiation?

How can a company gain competitive advantage through differentiation quizlet?

When can differentiation strategies increase a company's profitability?