Question 1

In the __________ stage of the industry life cycle,the emphasis on product design is very high,the intensity of competition is low,and the market growth rate is low.

Accepted Answer

A)   growth
B)   maturity
C)   introduction
D)   declineE) A) and B)
F) C) and D)

Question 2

The most likely time to pursue a harvest strategy is in a situation of _______.

Accepted Answer

A)   high growth
B)   strong competitive advantage
C)   decline in the market life cycle
D)   mergers and acquisitionsE) A) and B)
F) B) and C) C

Question 3

As markets mature,___________.

Accepted Answer

A)   costs continue to increase
B)   application for patents increase
C)   there is increasing emphasis on efficiency
D)   differentiation opportunities increaseE) A) and C)
F) A) and D)

Question 4

Discuss the uses and limitations associated with the industry life cycle concept as a framework for studying strategy formulation at the business level.

Accepted Answer

The industry life cycle concept is a fra...

Question 5

What are the benefits and risks associated with combining overall cost leadership and differentiation strategies?

Accepted Answer

Combining overall cost leadership and di...

Question 6

One potential pitfall of a differentiation strategy is that identification of the brand in the marketplace may become diluted through excessive product line extensions.

Accepted Answer

A) True 
 B)False

Question 7

A successful differentiation strategy lowers entry barriers because of customer loyalty and the ability of the firm to provide uniqueness in its products and services.

Accepted Answer

A) True 
 B)False

Question 8

During the decline stage of the product life cycle,a harvesting strategy means that a firm keeps a product going without significantly reducing marketing support,technological development,or other investments,while hoping that competitors will exit the market.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The software maker,Intuit,successfully implemented a turnaround strategy by discontinuing product lines and focusing all resources on a few core profitable areas.

Accepted Answer

A) True 
 B)False

Question 11

Explain how firms can use reverse positioning and breakaway positioning when faced with the maturity phase of the industry life cycle.

Accepted Answer

Reverse positioning and breakaway positioning are two strategies that firms can use when faced with the maturity phase of the industry life cycle.

Reverse positioning involves redefining the product or service in a way that challenges the existing norms and expectations within the industry. This can involve stripping away certain features or benefits that are typically associated with the product or service, or even repositioning the product for a completely different target market. By doing so, the firm can create a new niche for itself within the market and differentiate itself from competitors.

Breakaway positioning, on the other hand, involves introducing a completely new and innovative product or service that disrupts the existing market. This can involve leveraging new technologies, creating a new business model, or offering a completely different value proposition to customers. By doing so, the firm can break away from the traditional norms of the industry and create a new market space for itself.

In the maturity phase of the industry life cycle, competition is often intense and market saturation can lead to stagnant growth. By using reverse positioning, firms can differentiate themselves from competitors and appeal to a new segment of customers who are looking for something different. Similarly, breakaway positioning allows firms to create new opportunities for growth by introducing innovative products or services that can redefine the industry.

Overall, both reverse positioning and breakaway positioning can help firms navigate the challenges of the maturity phase and find new avenues for growth and success within the industry life cycle.

Question 12

Research has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform ______________.

Accepted Answer

A)   at about the same level as firms that achieve either cost or differentiation advantages
B)   about the same as firms that are stuck-in-the-middle
C)   higher than firms that achieve either a cost or a differentiation advantage
D)   lower than firms that achieve differentiation advantages but higher than firms that achieve cost advantagesE) A) and B)
F) A) and C)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Mass customization enables manufacturers to be more responsive to customer demands for high quality products.

Accepted Answer

A) True 
 B)False

Question 15

With reverse positioning,a strategy to be used during the mature stage of the industry life cycle,a product escapes its category by deliberately associating with a different one.

Accepted Answer

A) True 
 B)False

Question 16

During the growth stage of the market life cycle,customers are very likely to establish brand loyalty.

Accepted Answer

A) True 
 B)False

Question 17

To generate above average returns,a firm following an overall cost leadership position should NOT be concerned with attaining parity or proximity on the basis of differentiation relative to its peers.

Accepted Answer

A) True 
 B)False

Question 18

A narrow market focus is to a differentiation-based strategy as a __________________.

Accepted Answer

A)   growth market is to a differentiation-based strategy
B)   broadly-defined target market is to a cost leadership strategy
C)   growth market is to a cost-based strategy
D)   technological innovation is to a cost-based strategyE) B) and C)
F) A) and D)

Question 19

A firm can attain an overall cost leadership position by purchasing media in large blocks and maximizing sales force utilization through territory management.

Accepted Answer

A) True 
 B)False

Question 20

An important advantage of first movers in a market is that they may establish brand recognition that may later serve as an important switching cost.

Accepted Answer

A) True 
 B)False  True

Exam 5: Business-Level Strategy: Creating Andsustaining Competitive Advantages

In the __________ stage of the industry life cycle,the emphasis on product design is very high,the intensity of competition is low,and the market growth rate is low.

Correct Answer
verified

The most likely time to pursue a harvest strategy is in a situation of _______.

Correct Answer
verified
C

As markets mature,___________.

Correct Answer
verified

Discuss the uses and limitations associated with the industry life cycle concept as a framework for studying strategy formulation at the business level.

Correct Answer
Answered by ExamLex AI
The industry life cycle concept is a fra...
View Answer

What are the benefits and risks associated with combining overall cost leadership and differentiation strategies?

Correct Answer
Answered by ExamLex AI
Combining overall cost leadership and di...
View Answer

One potential pitfall of a differentiation strategy is that identification of the brand in the marketplace may become diluted through excessive product line extensions.

Correct Answer
verified

A successful differentiation strategy lowers entry barriers because of customer loyalty and the ability of the firm to provide uniqueness in its products and services.

Correct Answer
verified

During the decline stage of the product life cycle,a harvesting strategy means that a firm keeps a product going without significantly reducing marketing support,technological development,or other investments,while hoping that competitors will exit the market.

Correct Answer
verified

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

Correct Answer
verified

The software maker,Intuit,successfully implemented a turnaround strategy by discontinuing product lines and focusing all resources on a few core profitable areas.

Correct Answer
verified

Explain how firms can use reverse positioning and breakaway positioning when faced with the maturity phase of the industry life cycle.

Research has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform ______________.

Correct Answer
verified

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

Correct Answer
verified

Mass customization enables manufacturers to be more responsive to customer demands for high quality products.

Correct Answer
verified

With reverse positioning,a strategy to be used during the mature stage of the industry life cycle,a product escapes its category by deliberately associating with a different one.

Correct Answer
verified

During the growth stage of the market life cycle,customers are very likely to establish brand loyalty.

Correct Answer
verified

To generate above average returns,a firm following an overall cost leadership position should NOT be concerned with attaining parity or proximity on the basis of differentiation relative to its peers.

Correct Answer
verified

A narrow market focus is to a differentiation-based strategy as a __________________.

Correct Answer
verified

A firm can attain an overall cost leadership position by purchasing media in large blocks and maximizing sales force utilization through territory management.

Correct Answer
verified

An important advantage of first movers in a market is that they may establish brand recognition that may later serve as an important switching cost.

Correct Answer
verified
True

Exam 5: Business-Level Strategy: Creating Andsustaining Competitive Advantages

In the __________ stage of the industry life cycle,the emphasis on product design is very high,the intensity of competition is low,and the market growth rate is low.

Correct AnswerverifiedShow Answer

The most likely time to pursue a harvest strategy is in a situation of _______.

Correct AnswerverifiedC

As markets mature,___________.

Correct AnswerverifiedShow Answer

Discuss the uses and limitations associated with the industry life cycle concept as a framework for studying strategy formulation at the business level.

Correct AnswerAnswered by ExamLex AIThe industry life cycle concept is a fra...View AnswerShow Answer

What are the benefits and risks associated with combining overall cost leadership and differentiation strategies?

Correct AnswerAnswered by ExamLex AICombining overall cost leadership and di...View AnswerShow Answer

One potential pitfall of a differentiation strategy is that identification of the brand in the marketplace may become diluted through excessive product line extensions.

Correct AnswerverifiedShow Answer

A successful differentiation strategy lowers entry barriers because of customer loyalty and the ability of the firm to provide uniqueness in its products and services.

Correct AnswerverifiedShow Answer

During the decline stage of the product life cycle,a harvesting strategy means that a firm keeps a product going without significantly reducing marketing support,technological development,or other investments,while hoping that competitors will exit the market.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The software maker,Intuit,successfully implemented a turnaround strategy by discontinuing product lines and focusing all resources on a few core profitable areas.

Correct AnswerverifiedShow Answer

Explain how firms can use reverse positioning and breakaway positioning when faced with the maturity phase of the industry life cycle.

Research has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform ______________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Mass customization enables manufacturers to be more responsive to customer demands for high quality products.

Correct AnswerverifiedShow Answer

With reverse positioning,a strategy to be used during the mature stage of the industry life cycle,a product escapes its category by deliberately associating with a different one.

Correct AnswerverifiedShow Answer

During the growth stage of the market life cycle,customers are very likely to establish brand loyalty.

Correct AnswerverifiedShow Answer

To generate above average returns,a firm following an overall cost leadership position should NOT be concerned with attaining parity or proximity on the basis of differentiation relative to its peers.

Correct AnswerverifiedShow Answer

A narrow market focus is to a differentiation-based strategy as a __________________.

Correct AnswerverifiedShow Answer

A firm can attain an overall cost leadership position by purchasing media in large blocks and maximizing sales force utilization through territory management.

Correct AnswerverifiedShow Answer

An important advantage of first movers in a market is that they may establish brand recognition that may later serve as an important switching cost.

Correct AnswerverifiedTrue

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The industry life cycle concept is a fra...
View Answer

Correct Answer
Answered by ExamLex AI
Combining overall cost leadership and di...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
True