Question 1

Under which of the following conditions are multiple profit-making positions in an industry most likely?

Your Answer

Score

Explanation

There are substantial economies of scope available

Ideal product design and delivery varies widely across segments

Customers face high switching costs

Inorrect

0.00

Consumers have different tastes

Total

0.00 / 1.00

Question 2
Firms pursuing a niche strategy tend to do which of the following?

Your Answer

Score

Explanation

Capture economies of scale or scope.

Offer highly differentiated products.

Correct

1.00

Have no overhead costs.

Have prices slightly lower than the average within an industry.

Total

1.00 / 1.00

Question 3
Which of the following is an example of a narrow competitive scope?

Your Answer

Score

Explanation

Coca-Cola sells a variety of sodas in nearly every country of the world.

Inorrect

0.00

Sea Dog Brewing Company sells beer exclusively in New England.

Folgers offers instant, specialty, and decaffeinated brands in addition to regular coffee.

Barnes & Noble offers a wide variety of book titles in their stores throughout the United States.

Total

0.00 / 1.00

Question 4

Which is NOT a strong reason for a firm to occupy a generally unprofitable niche?

Your Answer

Score

Explanation

The niche is large and resources shared across niches have a high minimum efficient scale.

The firm is pursuing a strategy of differentiation.

The firm has a competitive advantage that can only be exploited in that niche.

Cumulative experience in that niche can be used to compete in more profitable niches.

Inorrect

0.00

Total

0.00 / 1.00

Question 5
Which of the following is NOT a generic competitive position?

Your Answer

Score

Explanation

Niche strategy

Inorrect

0.00

Focused market leader strategy

Differentiation strategy

Cost leadership strategy

Total

0.00 / 1.00

Question 6
Which of the following characterizes the strategic approach of a cost leader?

Your Answer

Score

Explanation

Minimize overhead such as R&D and advertising

All of the above

Correct

1.00

Build market share to gain economies of scale

Engage in cost-cutting

Total

1.00 / 1.00

Question 7
Which of the following characterizes the strategic approach of a differentiated player?

Your Answer

Score

Explanation

All of the above

Inorrect

0.00

Creates a distinctive brand through advertising

Uses low-cost inputs

Build market share to gain economies of scale

Total

0.00 / 1.00

Question 8
Which of the following characterizes the strategic approach of a focused low-cost player?

Your Answer

Score

Explanation

All of the above

Inorrect

0.00

Deters rivalry by segmenting the market

Invests heavily in human resources and R&D

Creates a distinctive brand through advertising

Total

0.00 / 1.00

Question 9
Which of the following best characterizes an integrated strategy?

Your Answer

Score

Explanation

All of the above

Inorrect

0.00

Adopts total quality management techniques

Does not invest heavily in R&D and innovation

Deters rivalry by segmenting the market

Total

0.00 / 1.00

Question 10
The best competitive position in a market for a firm is determined by:

Your Answer

Score

Explanation

Whether the firm can defend that position

All of the above

Correct

1.00

Whether the firm can establish that position

How contested is that position

Total

1.00 / 1.00