20) When using value chain analysis to analyse a firm's competitive strategy, the main aim is to: a) compare costs with those of competitors b) identify where costs have increased over time c) identify opportunities for resource allocation d) band 21) Differentiation is when a firm: a) Offers customers something valuable and unique at a significantly lower price than rivals b) Offers customers something valuable and unique at a premium price c) Offers customers a uniquely low price d) Offers customers products with many additional features 22) Once established, competitive advantage is: a) Relatively stable over time b) Subject to erosion by competitors or entrants c) A firm's reward for leading the industry d) Easily maintained unless entry barriers are high 23) If an industry has a stable environment and firms pursue similar strategies: a) Firms with similar resources and capabilities should have similar profit rates b) Firms with similar resources and capabilities should have similar structures c) Firms without similar resources and capabilities will have left the industry d) All of the above 24) Cost leadership means a firm must: a) Exploit all sources of cost advantage before tailoring the product to each customer b) Exploit all sources of cost advantage in providing customers with a standardised product c) Exploit all sources of cost advantage in providing each customer with their minimum requirements d) Exploit all sources of cost advantage while providing every customer an individual service