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Question $4$

$2pts$

While there are many routes to competitive advantage, the two biggest factors that distinguish one competitive strategy from another are

whether a company's overall costs are lower than competitors' and whether the company can achieve strong product differentiation.

whether a company can achieve lower costs than rivals and whether the company is pursuing the industry's sales and market share leader's role.

whether a company's target market is broad or narrow and whether the company is pursuing a low$-$cost or differentiation strategy.

whether a company can offer the lowest possible prices and whether the company can get the best suppliers in the market.

whether a company can build a brand name and an image that buyers trust.

Question $5$

$2pts$

An outsourcing strategy

increases a company's risk exposure to changing technology and$/$or changing buyer preferences.

is nearly always a more attractive strategic option than merger and acquisition strategies.

involves farming out certain value chain activities presently performed in$-$house to outside vendors.

carries the substantial risk of making a company overly dependent on its suppliers

carries the substantial risk of raising a company's costs.

Question $6$

$2pts$