Exam 10: Innovative Strategies That Change the Nature of Competition

Mel Inc., a popular cosmetics and perfume brand, delivers free samples with products worth $75 and more. This is an example of ___________.

Jobs Now is an employment website. Like its competitors, it offers free listings in every category, which is free for job seekers but not for companies. This feature of Jobs Now is an example of ___________.

Identify an accurate statement about blue ocean strategy.

Which of the following statements is true of a bundling strategy?

A software firm decides to offer its products at a lower price. In order to reduce costs, it outsources some of its in-house functions to countries that offer less expensive labor. As a result, it gains a cost advantage. The strategy adopted by this firm is an example of ___________.

Which of the following statements is true of the blue ocean strategy?

An organization launched a new product in the market. It offered a free trial of the basic model to gain widespread initial use, after which users were offered a nonfree premium version of the same product. Which of the following strategies is used by the company in this case?

___ coined the term hypercompetition.

Which of the following statements is true of the cross-sell strategy?

Ochre Inc. uses the freemium strategy to enter a market. This strategy becomes successful and the organization gains a wide customer base. Which of the following is likely to be true in this case?

Palm's, a new restaurant in Boston, enters the market with a new strategy. Cooking enthusiasts can co-create a dish for their family along with the in-house chefs. They also allow families to cook their meals together and dine by the poolside. None of the other restaurants in the city offers this unique service. This is an example of a ___________.

Lica Inc., a software company, initially offers a small percentage of its services for free. Once customers get familiar with the services, they decide to purchase them at a premium. The company makes money on the add-on services like application downloads, messenger updates, and other online services. Other companies pay Lica for advertising through these portals. Which of the following innovative strategies has been adopted by the company?

A(n)___ describes the creation of a unique or novel concept, method or process that is often turned into a tangible outcome.

Identify a true statement about the decline stage of an industry's life cycle.

Which of the following statements is true of the maturity stage of an industry's life cycle?

Lila, the CEO of Purple Inc., a bag manufacturing company, observes that customers prefer some personalized features. She considers implementing a mass customization strategy, while the production manager, Steven, suggests that standardization is the best strategy. Which of the following will strengthen Lila's decision?

An automobile company used its profits from the sale of motorcycles to invest in the development of cars. These cars were less expensive but technologically more advanced than those of its competitors. This is an example of ___________.

Which of the following statements is true of a third-party pay strategy?

What is a business model? Briefly explain the revenue model.

Zolac Inc. is an online store that sells lifestyle products. It offers 15% discount on weekend purchases. This marketing strategy is an example of a ___________.