Reference no: EM132225532
1. A low-cost leader can translate its low-cost advantage over rivals into superior profit performance by:
a. maintaining the present price, and using the lower-cost edge to earn a higher profit margin on each unit sold.
b. underpricing rivals and attracting quality-sensitive buyers in great enough numbers.
c. out-producing rivals and thus having more available units for sale.
d. spending heavily on advertising to promote its cost advantage to build strong customer loyalty.
e. going all out to use its cost advantage to capture a dominant share of the market.
2. A low-cost leader can translate its low-cost advantage over rivals into superior profit performance by:
a. maintaining the present price, and using the lower-cost edge to earn a higher profit margin on each unit sold.
b. underpricing rivals and attracting quality-sensitive buyers in great enough numbers.
c. out-producing rivals and thus having more available units for sale.
d. spending heavily on advertising to promote its cost advantage to build strong customer loyalty.
e. going all out to use its cost advantage to capture a dominant share of the market.
3. To profitably employ a best-cost provider strategy, a company must have the resources and capabilities to:
a. do a better job than rivals of adopting the best operating practices.
b. sell a product with the best cost at the best price.
c. have the best cost (as compared to rivals) for each activity in the industry's value chain.
d. provide buyers with the best attributes at the best cost.
e. incorporate attractive or upscale attributes into its product offering at a lower cost than rivals.
4. The objective of a best-cost provider strategy is to:
a. deliver superior value to value-conscious buyers at a comparatively lower price than rivals.
b. translate its best-cost status into achieving the highest profit margins of any firm in the industry.
c. out-compete rivals using low-cost provider strategies.
d. attract buyers on the basis of having the industry's overall best-performing product at a price that is slightly below the industry-average price.
e. offer buyers the industry's best-performing product at the best cost and best (lowest) price in the industry.
5. Which of the following rivals make the best targets for an offensive attack?
a. Firms with weaknesses in areas where the challenger is strong
b. Companies that are financially strong and possess favorable competitive market positioning
c. Large national firms with vast capabilities and intermittent trivial resource deficiencies
d. Strong and financially secure market leaders
e. Small local and regional firms with unrestrained capabilities