B resource strengths and competitive capabilities that allow it to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes. D most rivals are pursuing a differentiation strategy and are seeking to differentiate their products on most of the same features and attributes. Commitment strategies include those that 1 deter retaliation by communicating a commitment to unequivocally follow through on offensive moves, 2 deter threatening moves with a commitment to direct and continued retaliation if rival firms make certain moves and 3 create trust by communicating a commitment to make no new moves or forego existing moves in an effort to deescalate a competitive battle. Continuous efforts to lower costs relative to competitors is necessary in order to successfully be a cost leader. A differentiation strategy is known as a broad scope strategy because the business is hoping that their business differentiation strategy, will appeal to a broad section of the market. What are your goals for the future? Charge a price premium for its product because buyers see its differentiating features as worth something extra C. For example Brompton folding bicycles when folded are more compact than other folding bikes.
When the products of rivals are weakly differentiated and most competitors are resorting to clever advertising to try to set their product offerings apart Answer:c The pitfalls of a differentiation strategy include A. It has a well-known and well-regarded brand name, prefers offensive strategies to defensive strategies and has a strong balance sheet E. A strategy of operational excellence is ideal for markets where customers value cost over choice, which is often the case for mature, commoditized markets where cost leadership provides a vehicle for continued growth. Thus the customer realizes value based both on product features and a low price. Of course, this also requires having the financial strength to finance the purchases of these companies. Whether it is easy or inexpensive for rivals to copy the low-cost leader's methods or otherwise match its low costs B.
Unit sales increase and the extra price the product commands exceeds the added costs of achieving the differentiation Answer:c Using a broad differentiation strategy to produce an attractive competitive advantage is least likely to be based on A. Operational excellence is an ideal strategy for markets where customers prefer cost to a choice. C sell direct to users of their product or service and eliminate use of wholesale and retail intermediaries. It is the reason behind , and why you prefer one product or service over another. Therefore, this strategy is closely related to differentiation and cost leadership because it is a method used by businesses to keep those advantages in place once they have been attained. B delivering superior value to buyers and building competencies and resource strengths in performing value chain activities that rivals cannot readily match. Identifying an attribute or characteristic that makes your product or service unique is the driving factor in a differentiation strategy.
When there are few ways to achieve differentiation that have value to buyers C. For this, you may have to spend a lot for , which you may not be able to afford if yours is a small business. The offerings of rival firms are essentially identical, standardized, commodity-like products Answer:c In which of the following circumstances is a low-cost leadership strategy not likely to be particularly successful? Companies practicing successful customer intimacy blend comprehensive customer knowledge with operational flexibility to quickly respond to practically any need, from product personalization to meeting special requests. They have no clear business strategy and are attempting to be everything to everyone. With a differentiation strategy the business develops product or service features which are different from competitors and appeal to customers including functionality, customer support and product quality. This is especially true when special needs make it difficult for industry-wide competitors to serve the needs of this group of customers. Gain buyer loyalty to its brand because some, maybe many, of its customers will have a strong preference for the company's differentiating features E.
Higher volumes enable the business to negotiate lower prices from material suppliers and reduced costs for transportation. Seldom are perceived by buyers as having much value C. Technological change is fast-paced and competition revolves around rapidly evolving product features Answer:e A broad differentiation strategy generally produces the best results in situations where A. D outspend rivals on advertising and promotion in order to inform and convince buyers of the value of its differentiating attributes. Product leaders are aware that brilliance in creativity, teamwork, and problem-solving is crucial to their success. Some risks of focus strategies include imitation and changes in the target segments.
Increase unit sales because of the attraction of its differentiating product attributes D. Differentiation Focus Like a cost focus strategy, the differentiation focus approach aims for a narrow niche market. Requires developing at least one distinctive competence that buyers consider valuable D. The best strategy is the one that leverages the company's strengths for the greatest profits and the highest return on investment. Focus strategies involve achieving Cost Leadership or Differentiation within niche markets in ways that are not available to more broadly-focused players. You may notice that because obstacles or barriers are to do with system relationships or root causes, they are comparatively few.
E buyers are prone to shop the market for sellers having the best price. Organizations that achieve Cost Leadership can benefit either by gaining market share through lowering prices whilst maintaining profitability or by maintaining average prices and therefore increasing profits. Move the performance of most all value chain activities to low-wage countries C. The strategy focuses on achieving growth based on entry into new markets or new market segments. Production costs are kept low by using fewer components, using standard components, and limiting the number of models produced to ensure larger production runs.
A cost focus strategy is similar to a cost leadership strategy, but the major difference is that in a cost focus strategy your business targets a very specific segment of the market and offers that market the lowest prices available. Implementing this intensive growth strategy requires that Verizon apply strategic objectives that exploit such opportunities. The breadth of its targeting refers to the competitive scope of the business. E the number of upscale attributes incorporated into the product offering. It's simply not enough to focus on only one market segment because your organization is too small to serve a broader market if you do, you risk competing against better-resourced broad market companies' offerings. Are typically located in the sales and marketing portion of the value chain C. A market share dominator strategy Answer:e The generic types of competitive strategies include A.