Exam 4: Business-Level Strategy

A company pursuing the differentiation or focused differentiation strategy would tend to:

Historically, women have paid more for dry cleaning than men.  Signature Cleaners advertises "equal price" for all customers.  Signature Cleaners appeals to women, which is market segmentation by ______ factors.

The ______ dimension of relationships with customers is concerned with the firm's access and connection to customers.

Blind taste-tests have shown that the taste of premium-priced vodkas and inexpensive vodkas are indistinguishable even to regular drinkers of vodka. But the sales of premium vodkas are thriving. This is an example of:

The generalized forms of value that goods and services provide are either low cost with acceptable features or highly differentiated features with acceptable cost.

A flexible manufacturing system is:

Durable Ceramics, Inc., provides inexpensive ceramic tile to builders of institutional buildings such as schools, prisons, and public administration buildings. It has always competed on a cost leadership basis. Most of its products are purchased by a few commercial construction firms, so it is fairly dependent on these construction firms for selling its product. Durable Ceramic's next most-efficient competitor, Cost-Less Ceramics, Inc., earns average returns, whereas Durable earns above-average returns. The commercial construction firms are putting pressure on Durable to reduce its prices. If Durable reduces its prices below those of Cost-Less's prices, it is likely that:

The differentiation strategy is effective for products that are expensive, luxury consumer goods. It is not effective for common, inexpensive products such as donuts.

The use of a differentiation strategy would be expected to be LEAST effective in which of the following markets?

Viewing the world through the customer's eyes and constantly seeking ways to create more value for the company enhances:

The value-creating activities associated with the cost leadership strategy and differentiation strategy are the same.

When a firm is able to produce nonstandardized (that is, distinctive) products for customers who value differentiated features more than they value low cost, the firm is successfully implementing:

Target's brand promise "Expect More. Pay Less" and appeal to higher-income, fashion-conscious discount shoppers illustrates the _____ strategy.

Although it is a cost leader, IKEA also offers differentiated features that appeal to its target customers, including its unique furniture designs, in-store playrooms for children, and extended hours.

When selecting a business level strategy, the firm must determine all of the following EXCEPT:

Amazon has built capabilities around Internet technology and e-commerce to facilitate information exchanges with its customers in a cost effective manner. This represents which of the three service dimension?

If Southwest Airlines employees lost their high enthusiasm and commitment to the company:

Focus strategies are:

The book The Dyslexic Advantage appeals to a market of educators, people with dyslexia, their friends, family, and coworkers.  This is customer segmentation by ______ factors.

The activities in the value chains of companies using focus strategies are quite different than the activities in the value chains of companies using industry-wide business strategies.