All focus strategies entail serving a specific market segment using a differentiation approach.

True

False

The brand loyalty enjoyed by the differentiated company does not protect it from substitute goods and services.

True

False

Actions taken at the functional level should support the business-level strategy, as should the organizational

arrangements of the enterprise.

True

False

Standardization describes what happens when innovation pushes out the efficiency frontier in an industry, allowing for

greater value to be offered through superior differentiation at a lower cost than was previously thought possible.

True

False

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive

advantage by initiating price wars and driving weaker rivals out of the industry.

True

False

Focus strategy can be defined as the strategy:

a) a company uses when it decides to ignore the different needs of different market segments, and produce one

standardized product for all the customers.

b) a company uses when it decides to serve a limited number of segments, or just one segment of the market.

c) of merging with an established company in order to gain monopoly over the market.

d) a company uses when it decides to allocate the company resources equally among all the marketing

segments.

e) of closing down one or more business units in order to minimize the losses.

A differentiated product is a product that:

a) is offered free of cost on purchase of a company's standard product.

b) provides greater reliability than rival products.

c) has a greater resale value than rival products.

d) always costs less than rival products.

e) always costs more than rival products.