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Steve
Steve, MBA
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A low-cost provider strategy becomes increasingly appealing

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A low-cost provider strategy becomes increasingly appealing and competitively powerful when
a. price competition among rival sellers is vigorous, the products of rival sellers are essentially identical and supplies are readily available from any of several eager sellers, and buyers incur low costs in switching their purchases from one seller to another.
b. the products of most industry members are strongly differentiated, suppliers have significant bargaining power, entry barriers are high, and market demand for the product is growing rapidly.
c. buyers incur high costs in switching their purchases from one seller/brand to another, price competition among rivals sellers is vigorous, market demand for the product is growing rapidly, many buyers are brand conscious, and buyer bargaining power is weak.
d. competition revolves around rapidly evolving product features, low entry barriers prompt industry newcomers to use low introductory prices to attract buyers, and buyer needs and uses of the product are diverse.
e. entry barriers are low, technology is changing rapidly, many buyers are price sensitive, many buyers are brand conscious, and the products of rival sellers are strongly differentiated.
Which of the following is not one of the five basic types of competitive strategy?
a. A best-cost provider strategy
b. A low-cost provider strategy
c. A broad differentiation strategy
d. An every-day low price strategy
e. A focused low-cost provider strategy
Which of the following is not one of the pitfalls of a low-cost provider strategy?
a. Becoming too fixated on cost reduction
b. Not emphasizing avenues of cost advantage that can be kept proprietary or that relegate rivals to playing catch up
c. Being greedy and trying to charge too high a price
d. Overly aggressive price-cutting
e. Failing to recognize the risks that an innovative rival may discover an even lower lower-cost value chain approach or that the firm's cost advantage can be undermined by cost-saving technological breakthroughs
The chief difference between a broad differentiation strategy and a focused differentiation is
a. the number of differentiating attributes incorporated into the product offering--a broad differentiation strategy entails having many differentiating features and attributes while a focused differentiation strategy is concentrated on just a few differentiating features and attributes.
b. the number of upscale attributes incorporated into the product offering--a broad differentiation strategy entails having a bigger number of upscale attributes than does a focused differentiation strategy.
c. the type of value chain being used to achieve a differentiation-based competitive advantage--a broad differentiation strategy requires a more complex and sophisticated value chain than does a focused differentiation strategy.
d. the size of the buyer group that a company is trying to appeal to--a broad differentiation strategy is aimed at many buyer groups and market segments and a focused differentiation strategy is aimed at appealing to the unique preferences and needs of a narrow well-defined group of buyers.
e. the degree to which the product is differentiated from the product offerings of rivals--a broad differentiation strategy concentrates on achieving a stronger degree of differentiation than does a focused differentiation strategy.
A company’s competitive strategy is unlikely to result in good performance or sustainable competitive advantage unless
a. it is able to strongly differentiate its product offering from the product offerings of rival firms.
b. the company pursues either a low-cost provider strategy or a focused low-cost strategy.
c. the strategy is aimed squarely at achieving a value-based competitive advantage.
d. it employs more best practices in performing its value chain activities than close rivals are employing in performing their value chain activities.
e. the company has a competitively valuable collection of resource strengths, competencies, and capabilities and unless its strategy is predicated on leveraging use of these resources.
Submitted: 4 years ago.
Category: Multiple Problems
Expert:  Steve replied 4 years ago.

a d c d e

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