Reference no: EM132930529

1) Cost-based Strategy or Differentiation-based Strategy? A board game manufacturer discovered that he could use a heat-transfer process to add attractive designs to the backs of his game pieces because of the basic material he uses in production of those pieces. His competitors could not duplicate the process because their basic material would not accept such transfers. He realized that this decorative step would add value, thereby allowing him to sell his product at a higher price.
a. Cost-based Strategy b. Differentiation-based Strategy?

2) Cost-based Strategy or Differentiation-based Strategy? An accidental discovery led to a technological breakthrough that makes it possible for an entrepreneur to produce her product more efficiently, allowing her to sell her product at a lower price than the competition and still make a sufficient profit.
a. Cost-based Strategy b. Differentiation-based Strategy

3) Cost-based Strategy or Differentiation-based Strategy? A custom dressmaker realizes that she can add a new feature to her products that will appeal to an upscale market niche, which includes buyers who would be willing to pay a premium price for fashion items that have the new feature.
a. Cost-based Strategy b. Differentiation-based Strategy

4) Cost-based Strategy or Differentiation-based Strategy? A small manufacturer's production costs are about the same as those of his competition. This is because the shipping costs of his raw materials are very high. But he has discovered a local source for these materials, and his shipping expenses would be significantly reduced by using that source as his main supplier. This would lower his production costs below those of his competitors.
a. Cost-based Strategy b. Differentiation-based Strategy