Question $1(1$ point$)$

Saved

The firm is most likely to focus on increasing willingness to pay for its product or service to improve its competitive advantage when $\_\_\_\_\_$

Question $1$ options:

customers are concerned about physical and emotional appeal of a product or service

customers have an overriding preference for a single feature of a product or service

economies of scale are crucial to the success in the industry to which the firm belongs

there is strong regulation in the industry

Question $2(1$ point$)$

Saved

A differentiation strategy relies on the firm's ability to $\_\_\_\_\_$

Question $2$ options:

exercise political influence to create regulatory barriers to entry

identify and utilize unique talents among employees

adapt to local competitive and institutional environments

offer products with attractive features or functions to increase customers' willingness to pay

Question $3(1$ point$)$

Saved

According to the advantage curves in the diagram below, which firm is likely to be pursuing a product differentiation strategy?

Question $3$ options:

Firm A

Firm B

Firm C

None of the above

Question $4(1$ point$)$

Saved

Viewing strategy as an iterative process facilitates strategic implementation because $\_\_\_\_\_$

Question $4$ options:

Strategy formation and implementation can be split sequentially

An iterative approach helps avoid escalating commitment to a failing course

An iterative approach leads to unwavering commitment to strategic objectives

An iterative approach shuts out irrelevant new information

Question $5(1$ point$)$

Saved

Which of the following is FALSE about blue ocean strategy?

Question $5$ options:

Blue ocean strategy shields the firm from external environmental changes

Disruptive technologies are not a necessary condition for blue ocean strategy

Blue ocean strategy usually redefines the industry's value creation curve

Competitive advantage derived from a blue ocean strategy is likely to be transitory

Question $6(1$ point$)$

Saved

Which of the following is not recommended when firms aim to create blue ocean market?

Question $6$ options:

Discovering unmet needs of customers

Looking across strategic groups within its industry

Focusing on adapting to external threats as they occur

Redefining the buyer group within the industry

Question $7(1$ point$)$

Saved

Which of the following is NOT true about cost drivers?

Question $7$ options:

Cost drivers allow managers to estimate competitors' cost positions

Each activity along the value chain is associated with a set of cost drivers

Sensitivity analysis is crucial in analyzing the impact of cost drivers

All cost drivers should receive equal amount of attention when managers analyze strategic options

Question $8(1$ point$)$

Saved

Trade$-$off decisions are inevitable in creating sustained competitive advantage because of all but one of the following:

Question $8$ options:

the incongruence between short$-$term and long$-$term goals

the threat of substitute products

the limitation of the firm's underlying resources and capabilities

the constraining and enabling effects of existing organizational structure

Question $9(1$ point$)$

Saved

Company A $($dash line$)$ represents a blue$-$ocean strategy in all of the following diagrams of value creation curves except for $\_\_\_\_\_$

Question $9$ options:

Question $10(1$ point$)$

Saved

Buyers tend to have more bargaining power when

Question $10$ options:

buyers operate in a heavily regulated industry.

these buyers are capable of backward integration.

there are high switching costs for the buyers when they choose alternative sellers.

there are a relatively smaller number of sellers.