Exam 6: Business-Level Strategy and the Industry Environment

Which of the following strategies helps companies with high cost strnctures, allowing them to survive without having to implement strategies to become more productive and efficient?

An embryonic industry is one that:

Alpha corporation owns and controls several retail outlets and is thus pursuing a strategy called franchising.

A new product's relative advantage refers to the degree to which a new product is perceived as better at satisfying customer needs than the product that it supersedes.

Which of the following is an advantage of franchising?

Which of the following statements is true in the context of growing industries?

Both innovators and early adopters enter the market while the industry is in its embryonic stage.

Which of the following statements is true in the context of declining industries?

John, a technology enthusiast, is often willing to pay premium prices to be one among those who have new versions of software packages.John most likely belongs to the group of customers.

In a harvest strategy, a company:

Which of the following customer groups represents the leading wave or edge of the mass market?

A limit price strategy involves charging a price that is lower than that required to maximize profits in the short run, but is above the cost structure of potential entrants.

Which of the following shakeout strategies requires a company to limit or decrease its investment in a business and to extract, or milk, the investment as much as it can?

Which of the following factors that affect market growth rates refers to the degree to which a new product is perceived as better at satisfying customer needs than the product it supersedes?

Who among the following is most likely to fall under the category of laggards in the context of customer groups?

Most embryonic industries arise from:

Factors leading to the slow growth of demand in embryonic industries include all of the following except the:

Development of a mass market is the stimulus for an industry to change from growth to embryonic.

Laggards are technologically sophisticated customers willing to tolerate the limitations of the product.

In his book Crossing the Chasm.Geoffrey Moore discusses some of the issues involved in marketing technologically new products as markets develop through different stages.What groups does Moore identify and what must companies do if they are to successfully cross the chasm?