11. Transferability, replicability, and acquisition are elements linked to the development of capabilities. True or False? 12. Cost leadership and differentiation are the two main types of competitive advantages. True or False? 13. Competitive advantage can be defined as: a. A firm's ability to achieve a greater market share than its competitors b. A firm's ability to consistently outperform the stock market index in terms of shareholder retums c. The ability for a firm to earn a persistent rate of profit which is higher than its rivals d. A concept that is meaningless because the definition requires so many approximations 14. Differentiation is defined as: A strategy where a firm provides a product perceived as valuable by customers, beyond its low price b. Offering a low price based on a low cost c. A strategy where a firm offers a large scope of products to cover all the segments of the market d. Having different businesses under one roof and low cost: 15. The statement that there is always a trade-off between high-quality a. Does not make sense b. Is a myth c. Is true, especially in high technology industries d. Makes sense only for slow-changing industries 16. The examples of Ikea and Southwest Airlines illustrate: a. The power of brand as a factor of success b. The quality of the top management of these firms c. The luck these two firms have benefited from d. The unique brand image of low-price and no-frills in their marketing strategy Chapter 8: Industry Evolution and Strategic Change 17. The faster a firm can respond to the changes that occur in its market, the more important it is that it is able forecast these changes in advance. True or False? 18. The industry life cycle follows similar phases as the product life cycle. True or False? 19. Over time, industry life cycles have become increasingly compressed True or False? 20. If a firm focuses closely on meeting the needs of its customers, it is unlikely to be blindsided by disruptive innovation